Avios to launch ‘redeem your points for a discount on a cash ticket’?
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I have mentioned before that I have it on decent authority that Avios will launch a scheme later this year to allow you to pay for all or part of a cash ticket with your Avios points.
I was interested to see that some people have received a survey from Ipsos Mori asking for their views on the idea.
I was sent over some screenshots of the options that the survey laid out.
Respondents were asked for their enthusiasm about the following scenarios:
- Redeem 5,300 Avios for a £40 cash saving on a Club Europe ticket (0.75p/Avios)
- Redeem 9,000 Avios for a £130 cash saving on a World Traveller (Economy) long-haul ticket (1.44p/Avios)
- Redeem 60,000 Avios for a £700 cash saving on a Club World ticket (1.17p/Avios)
The questionnaire said that the tickets will be treated as standard cash tickets and will therefore earn standard Avios and tier points when you fly.
Now, as ever, the devil is in the detail here.
I do not, for a second, believe that you will be getting 1.44p per Avios redeemed. That would be ludicrously generous. The ONLY scenario I can see where this would happen is if the number of Avios you could redeem was capped.
There are two ways BA could play this, as I see it. At present, if you redeem your Avios points for a hotel stay, you get 0.58p per Avios of value compared to booking the same room for cash – I did a long post on this a while ago.
If you are able to pay the ENTIRE cost of a flight in Avios, the redemption rate will be low – probably the same 0.58p per Avios they use for hotel redemptions
If you are only able to pay a small part of the cost of a flight in Avios, the redemption rate can be a lot more generous, possibly above 1p. You will still be paying out a lot of cash for your ticket, though.
BA seems to be considering both scenarios. One of the questions, for example, is
‘If you were booking a flight for £500, how attractive would the option be of paying £370 + 9,000 Avios?’
However, a second question is:
‘If an easyJet flight was £100 and you could book the same flight on BA for 5,300 Avios, how attractive would this be?’
We need to see how this plays out. My personal view is that BA should allow you to redeem for the full cost of a flight in Avios, even if this means a lower redemption rate per Avios point. It will, for a start, stop people being able to claim that they can never use their Avios points.
For long-haul economy flights, the rates will actually look pretty attractive – it is very poor value at the moment redeeming for long-haul economy with their £375+ fuel surcharges.
Keep an eye on Head for Points for future developments on this.
How to earn Avios from UK credit cards (October 2024)
As a reminder, there are various ways of earning Avios points from UK credit cards. Many cards also have generous sign-up bonuses!
In February 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards with a bonus of up to 25,000 Avios. You can apply here.
You qualify for the bonus on these cards even if you have a British Airways American Express card:
Barclaycard Avios Plus Mastercard
Get 25,000 Avios for signing up and an upgrade voucher at £10,000 Read our full review
Barclaycard Avios Mastercard
Get 5,000 Avios for signing up and an upgrade voucher at £20,000 Read our full review
There are two official British Airways American Express cards with attractive sign-up bonuses:
British Airways American Express Premium Plus
30,000 Avios and the famous annual 2-4-1 voucher Read our full review
British Airways American Express
5,000 Avios for signing up and an Economy 2-4-1 voucher for spending £15,000 Read our full review
You can also get generous sign-up bonuses by applying for American Express cards which earn Membership Rewards points. These points convert at 1:1 into Avios.
American Express Preferred Rewards Gold
Your best beginner’s card – 20,000 points, FREE for a year & four airport lounge passes Read our full review
The Platinum Card from American Express
50,000 bonus points and great travel benefits – for a large fee Read our full review
Run your own business?
We recommend Capital on Tap for limited companies. You earn 1 Avios per £1 which is impressive for a Visa card, along with a sign-up bonus worth 10,500 Avios.
Capital on Tap Business Rewards Visa
10,000 points bonus – plus an extra 500 points for our readers Read our full review
There is also a British Airways American Express card for small businesses:
British Airways American Express Accelerating Business
30,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review
There are also generous bonuses on the two American Express Business cards, with the points converting at 1:1 into Avios. These cards are open to sole traders as well as limited companies.
SPECIAL OFFER: Until 22nd October 2024, the bonus on American Express Business Platinum is increased to up to 80,000 Membership Rewards points, worth 80,000 Avios. You will receive 8 points per £1 spent for the first three months, on up to £10,000 of spending. Click here to read our full card review. Click here to apply.
SPECIAL OFFER: Until 22nd October 2024, the bonus on American Express Business Gold is increased to up to 40,000 Membership Rewards points, worth 40,000 Avios. You will receive 4 points per £1 spent for the first three months, on up to £10,000 of spending. The card is FREE for your first year. Click here to read our full card review. Click here to apply.
American Express Business Platinum
Up to 80,000 points when you sign-up and an annual £200 Amex Travel credit Read our full review
American Express Business Gold
Get up to 40,000 points as a sign-up offer and FREE for a year Read our full review
Click here to read our detailed summary of all UK credit cards which earn Avios. This includes both personal and small business cards.
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