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The importance of Tesco to Avios

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Avios emailed most members yesterday with details of the current Tesco transfer promotion that I wrote about last week.

To confirm, there is NO transfer bonus this quarter.  Instead, you will receive an entry into a competition to win one of 200 x 9,000 Avios prizes when you convert at least £5 of Clubcard vouchers.

There was one interesting titbit in the email.

Avios wing 10

Apparently, 2.52 BILLION Avios points were collected via Tesco Clubcard in the last 12 months.

As I wrote here, 97 billion Avios were issued in total in 2013.  This means that Tesco is only responsible for around 2.5% of all Avios points issued.

Of course, a lot of those 97 billion Avios were issued to BA and Iberia flyers who collected them ‘by accident’ and will not redeem them.  Anyone who transfers from Tesco is clearly serious about using their Avios so the 2.5% number probably understates the importance of the relationship.

2.52 BILLION Avios is equivalent to 1 billion Clubcard points or £10 million of Tesco vouchers at face value.  You would assume that Tesco is paying across at least the face value of the vouchers to Avios, because other Clubcard boost deals simply would not work if partners received less.  That said, £10 million is only a drop in the ocean compared to British Airways and Iberia annual passenger revenue of €16 billion in the last financial year.


how to earn avios from credit cards

How to earn Avios from UK credit cards (February 2021)

As a reminder, there are various ways of earning Avios from UK credit cards.  Many cards also have generous sign-up bonuses!

There are two official British Airways American Express cards:

British Airways American Express card

British Airways American Express

5,000 Avios for signing up, no annual fee and a companion voucher for spending £20,000 Read our full review

BA Premium Plus American Express card BAPP

British Airways American Express Premium Plus

25,000 Avios and the UK’s most valuable credit card perk – the 2-4-1 companion voucher Read our full review

You can also get generous sign-up bonuses by applying for American Express cards which earn Membership Rewards points, such as:

Nectar American Express

American Express Preferred Rewards Gold

Your best beginner’s card – 20,000 points, FREE for a year & two airport lounge passes Read our full review

American Express Platinum card Amex

The Platinum Card from American Express

30,000 points and an unbeatable set of travel benefits – for a fee 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.

If you have a small business, we especially recommend Capital On Cap’s Visa card which comes with a generous bonus worth 10,500 Avios:

Capital On Tap Business Rewards Visa

The most generous Avios Visa or Mastercard for a limited company Read our full review

(Want to earn more Avios?  Click here to visit our home page for our latest articles on earning and spending your Avios points and click here to see how to earn more Avios this month from offers and promotions.)

Comments (48)

  • haasha says:

    Is it 2.52 billion transferred Avios or sitting in the accounts? I guess there is way more stacked in desperate wait for transfer bonus.

    • squills says:

      It wouldn’t be classified as Avios

      • Andrew S says:

        Now tesco’s clubcard liabilities would be interesting to see…;)

        • squills says:

          Dead right. I think they are generally happy to see unused stashes as they probably account for them well under par. That’s fair enough as obviously some do expire. I might trawl through the financial reports to see if anything comes up 😉

          • squills says:

            Had a scan but nothing much of interest, basically they do what they can get away with, I imagine.

            Clubcard, loyalty and other initiatives The cost of Clubcard and loyalty initiatives is part of the fair value of the consideration received and is deferred and subsequently recognised over the period that the awards are redeemed. The deferral is treated as a deduction from revenue.
            The fair value of the points awarded is determined with reference to the fair value to the customer and considers factors such as redemption via Clubcard deals versus money-off-in-store and redemption rate.

          • squills says:

            Says here that 95% of Clubcard points are actually redeemed (which would definitely curtail much opportunity for funny accounting, given the expiry deadlines etc)
            http://www.slideshare.net/fullscreen/dunnhumby/the-loyalty-guide-5-tesco-dunnhumby-case-study/5

          • Andrew says:

            ^ very interesting Squills

  • Bob says:

    Do some people still receive 800 avios per 250 of club card points? I signed up for automated air miles conversion years ago and tesco have continued to honour the increased rate on avios.

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