New: use Clubcard points at Uber and Hotels.com at 3 x face value – better than Avios?

For those of you who collect Avios points or Virgin Flying Club miles via Tesco Clubcard, you should know that Tesco has announced an overhaul of the scheme.

So far, so good – it only looks like improvements as far as I can tell.  You may, however, need to reconsider whether Avios or Virgin miles still work for you.

This is what is happening, based on reports at moneysavingexpert.com:

New Clubcards are being sent to all members from Friday – these will be contactless

You can redeem vouchers in multiples of 50p rather than £2.50 – this will reduce wastage, which was a problem with some Days Out vouchers

You can redeem Clubcard vouchers via the Tesco app, by letting the store scan a bar code – although you really, really should not be spending Clubcard vouchers in store at face value!

Uber and Hotels.com have been added as Boost partners at 3 x face value

Uber 350

Uber and Hotels.com are very, very interesting

The ‘catch’ with many Tesco Clubcard redemptions is that you often end up overpaying for the item in the first place.

Whilst you can use vouchers at Pizza Express for 4 x face value, for example, there are so many discount deals available via their weekly emails or other sources that you can’t genuinely say that you are saving the full amount.  We have done a lot of research on this over at our sister site Shopper Points.

The best ‘genuine’ Clubcard redemptions include Goldsmiths and Eurotunnel (and Safestore, which has just ended) because these are places which rarely discount and where you can use unlimited quantities of Clubcard vouchers.

Hotels com rewards 2

Uber:

The Uber deal is a ‘genuine’ 3 x face value offer.

The Tesco / Uber page is here.

For every 50p of vouchers you convert, you receive £1.50 of Uber credit.  No catches although, for clarity, you can’t use it for UberRUSH credit.  It is only valid for rides in the UK.

This is an excellent deal if you are a regular Uber user and instantly makes this one of the best Tesco Clubcard redemptions.

Hotels.com:

The Tesco / Hotels.com page is here.

This is not a ‘genuine’ 3 x face value offer.  Hotels.com does not let you collect Hotels.com Rewards credit if you pay with Clubcard vouchers.  You won’t get any shopping portal rewards either.  Even discounting those two aspects, however, you would still be getting over 2.5 x face value for your vouchers.

Note that you can only book pre-paid rooms with your Clubcard vouchers and that your points are not refundable if you cancel your hotel booking.

There is a cap of converting £165 of points per transaction, which would give you a £495 voucher.  Whilst you can only use one voucher per booking, nothing stops you making separate back to back bookings.

As you can only use one voucher per booking you need to be careful when you convert.  If a room costs £150 then you need to convert £50 of Clubcard points into one voucher if you want the entire room to be free.  If the price drops to £140 before you get around to booking, you don’t get £10 back.  If the price goes up to £160, you need to pay the extra in cash – you can’t add a 2nd voucher for £10.

Should you switch from Avios?

If you are a regular user of Uber or Hotels.com, you may want to rethink whether Avios or Virgin Flying Club miles are still the best deal for you.

As Uber is genuinely 3 x face value, you are trading (with a £1 Clubcard voucher) 240 Avios vs £3 of Uber credit.  You are ‘paying’ 1.25p per Avios which is too high, in my view.

If Hotels.com nets out at somewhere between 2.5 and 3 x face value, as you are giving up Hotels.com Rewards credits and other bonuses, you are trading 240 Avios vs £2.50 – £3 of Hotels.com credit.  You are ‘paying’ 1p to 1.25p per Avios if you choose Avios instead.  That is still too high for my liking.

I am sitting on £481 of unspent Tesco Clubcard vouchers, according to the app, so I have a personal stake in deciding which of these options is the best way forward!  Given our Uber spend, I may well use them there.

Remember that our sister site Shopper Points publishes five articles per week, mainly focused on special deals for earning extra Tesco Clubcard points.

PS.  If you don’t already have an Uber account but may now open one, don’t forget our special sign-up code.  Adding code HEADFORPOINTS on the Payment page after registering gets you your first ride for free, up to £15.  This is better than the standard refer-a-friend bonus which only gets you a free ride up to £10.

Love Clubcard, don’t collect Avios?  You should be reading our sister site, Shopper Points (www.shopperpoints.co.uk), which covers the latest Clubcard and Nectar offers without any distracting frequent flyer talk!  Why not check it out now?

Bits: Virgin cooling off period for buying miles, €29 Vueling sale, Cathay business sale
TODAY ONLY - Qatar Airways business deals (Singapore £1080, Auckland £1657)
About Head for Points

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Comments

  1. robstaaaar says:

    O/T, I’m relatively newish here and regularly follow posts etc. Not up to speed with all the abbreviations and HfP ‘speak’. I have accrued Amex Plat, Gold and Nectar bonus sign up and spending points; silly question – just wondered the best way to use for hotel, flights? Best to join the numerous schemes (BAEC/VAFC et al) then transfer? Again, apologies if quite obvious. I’m having a blond moment! (Apologies for any offence to those blond amongst you).

    • the real harry1 says:

      you won’t offend amazingly good looking blonds like me

      might possibly offend a few blondes though 🙂

      the best way is down to you & your requirements

      best value is probably transatlantic or over to Australasia/ SE Asia in Club or First with a 241

    • Genghis says:

      Hi robstaaar. In general, airmiles (avios / virgin etc) are best use for flights and hotel reward scheme points used for hotels. Work out what your travel goals might be and then work out how to achieve them. E.g. You’ve earned 30k Amex MR points and fancy a weekend to Berlin. Research flights (BA RFS – reward flight saver) might offer good value and you might choose to transfer some Amex points to BA Exec club. You fancy staying in the Waldorf. Sign yourself and your partner up for the Hilton credit card to get 2 free nights. Etc. Stick around and you’ll pick up more ways to build up your knowledge on how everything fits together. If you have a question, just ask.

  2. robstaaaar says:

    Great, thx. guys/gals/readers. Will do my homework 🙂

  3. PalCsaky says:

    Can a % off code be used on hotels.com when paying with clubcard vouchers?

  4. RogerWilco says:

    The main snag with the hotels.com is that you won’t get either their Rewards nights (=10-20% off) or any cashback (typically 10%) you need to calculate “full price” with Tesco vouchers vs 20-30% off + Avios for your vouchers

    • Which cashback site is that? You normally only get 4% with rewards.

      • Genghis says:

        It’s still decent I think. I find earning avios even without Tesco clubcard conversions quite easy so this provides another option at effective x2.58 currently

    • Andrew (@andrewseftel) says:

      How do you get up to a 30% rebate? I think I’ve only ever managed up to 22% or so, with 12% cashback and hotels.com rewards valued at 10%

      • Genghis says:

        Don’t hotels.com run very rare and targeted double up promos – i.e. 2 reward night credits for one stay. I’ve never had one though and so would never consider this the rebate.

        • Pangolin says:

          Haven’t heard about those. As it’s a targeted promo you likely wouldn’t hear about it on the points sites either. One to watch out for though… I’ll be a bit more careful reading hotels.com emails in future before hitting that delete key!

          • They once offered a one-day promo which offered double rewards credit to all, which we covered.

            They told me afterwards that it was a damp squib and that only HFP readers showed any interest!

        • Scallder says:

          Yes I’ve had a fair few over the years. Originally they didn’t complete double value, so managed to get 6 nights towards the 10 from a 3 nights stay, however more recently I had a voucher which was for an extra night, so 3 nights on a 2 night stay. Although wasn’t able to make use of that one given the travel window.

  5. Kevin Young says:

    Many of us are still able to redeem to Avios at the grandfather rate (2.50=800) is this likely to be affected, does anyone know?

    • the real harry1 says:

      highly unlikely as Tesco would like to have got rid of that years ago – but haven’t, presumably on legal advice

  6. Lewis Watson says:

    Can you collect club card points on uber or only redem

  7. Chelseafi says:

    Is uber good to use for an airport run. Family holiday west London to Heathrow return journey needed? Got Loads of Clubcard points, I assume you can’t prebook so how is it when you land (3pm on a Mon) easy enough? I don’t have Uber but going with my son who uses it all the time for his nights out? Thanks

    • Genghis says:

      You can now prebook within central London. I’ve not used it yet though… Not sure if LHR is within the zone.

    • I tested uber when landed in LHR other day – the order was picked up by someone 10 minutes away from the airport (that’s what the app said, at least); then I had to wait 15-20 minutes for the driver to arrive as the traffic around LHR was terrible. All in all, 20 minutes of my life wasted and it was not cheaper than my local cab. Now I use only mini cab who meet me at the arrivals. Try Kabbee app to pre-book your mini cab (they will also give you price before you book).

    • We use Uber for (almost) every LHR trip.
      Prebooking makes early morning departures trivial.
      On the inbound we’re picked up in the short stay car park within 10mins. (If you’re confident of your border and baggage delays you can certainly time it better than this).

      I now only vaguely remember there being some kind of expensive alternative. Black whatsits?

      Occasionally if we arrive back at a reasonable time we’ll tube it.

      • If you don’t have kids and are on hand baggage only then you fairly safely guess the time required to get through passport control on the egates. If you need to queue, with kids, or you need to wait for luggage, then you can’t order until you’re ready.

        That said, it is rarely worse than 15 minutes. The cars are all now forced to wait in a Heathrow holding pen and only cars in the pen can pick up jobs.

  8. AndyGWP says:

    I have a £5 referral credit in my uber account, and due to a £30 clubcard voucher that was about to just expire, I’ve now added a £1.50 uber credit.

    Does anyone know if I take a £7 journey, how it works? (in an ideal world, i’d want to use the £5 referral credit on that journey, along with the £1.50 uber credit, with it finally resorting to taking the extra 50p payment from my credit card)

  9. Doug M says:

    I hate the way an article like this makes me have to think 🙂 I’m on the 800 rate for Avios. I tend to use Hotel com, so using 3x credit as a valuation I’d be ‘paying’ under a penny for an Avios. Given this is further reduced by the loss of the (always overstated but unclear) shopping portal benefit, and the reward night I think I’ll stick with Avios. Used Uber twice in maybe 18 months so not a consideration.

  10. The Tesco website now shows £165 converted to £495 as the maximum redemption

  11. The exclusions list makes Hotels.com a terrible deal.

  12. Apologies if this has been spotted. I converted £4.50 to £13.50 Uber credit yesterday. When I log into the UberEATS app it shows that credit there also. I haven’t tried it yet but I might give it a go tomorrow lunch.

  13. What about redemptions for things like Intrepid? They are also 3x (4x if you are lucky). My partner and went to Vietnam effectively for 25% of the price. Going to repeat the trick with a trip to Central America next year.

    • Yes, some of the niche tour operators are good as well. The truth is that I don’t get that many reports on those deals.

    • the real harry1 says:

      but you’re not going there for 25% of the price

      Tesco points are worth a lot more than face value

      only silly old ninnies redeem them for face value eg groceries

      even for a basic Avios conversion, 1p Tesco = c. 2.4p Avios.

  14. Can anyone confirm if the hotel.com Tesco voucher credit only good for the 1st room. If I want to book 3 rooms at the same hotel? I would need to make 3 separate bookings with 3 Tesco voucher codes?

    Thanks.