Maximise your Avios, air miles and hotel points

“Should I convert my £1,800 of Tesco Clubcard vouchers into Avios by 18th January?”

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As we have covered, Tesco Clubcard and Avios are going separate ways on 18th January. Click for the story. This is the last day to send your points over.

It seems that Virgin Flying Club will remain a Tesco Clubcard partner, although Virgin Red – which will take over all non-flying offers for Virgin Points in the new year – has yet to confirm this.

Should I convert Tesco Clubcard points to Avios

A reader writes …..

A reader wrote to me this week asking what he should do with his £1,800 of Tesco Clubcard vouchers, which would convert to well over 400,000 Avios. I thought I would run through what I told him for the benefit of others in a similar boat.

(The reader didn’t explain how he had so many Clubcard points, given the paucity of deals recently. I imagine that he had a Tesco Bank mortgage and received a substantial points compensation payment when Tesco pulled out of the sector.)

In this particular case, the reader has an existing pot of 400,000 Avios. His current plan was – sensibly – to dripfeed the Clubcard points across as he needed them. This meant that he was not at risk if there was a negative change to the Avios scheme.

One concern he has is that, with credit card sign-up bonuses now harder to achieve, he may struggle to obtain more Avios in the future if he does not convert his existing Clubcard points stash.

Tesco Clubcard to BA Avios

My thoughts ….

If we’re honest, for anyone sitting on a small stash of Clubcard vouchers (I have £25-worth unredeemed), there isn’t much at risk. If I move them to Avios and Avios devalues, I haven’t lost a lot.

If you are sitting on larger sums, it does become an issue. Here are some key points to consider:

The ‘Clubcard to Avios’ conversion rate is strong

Getting 2.4 Avios for 1 Clubcard point is a strong exchange rate. It is important to remember this.

Other Clubcard redemptions are not as good as they seem

There are Clubcard redemption offers which claim to offer ‘3x face value’. If this is true, you would be ‘paying’ 1.25p per Avios since the alternative to taking 2.4 Avios is getting a 3p discount on a Pizza Express meal, booking etc.

In many cases, you are NOT getting a genuine 3x. With, for example, Clubcard bookings do not earn Rewards credit which is equivalent to 10% of your spend. This makes it nearer 2.7x.

We did an article recently looking at other travel-related Clubcard deals. Railcard IS a true ‘3x’, as is Eurotunnel, since these brands rarely discount. This isn’t the case for many brands.

Tesco Clubcard to Virgin Points

Virgin Points remain an option

As far as we know, Virgin Atlantic is remaining a Clubcard partner. The transfer rate is marginally better than Avios at 2.5 Points per 1p of Clubcard points.

The airline has a limited route network, however, and it is changing rapidly. No-one can be sure where it will be flying in 12 months or even if it will survive – although the odds are looking better now that travel will pick up before its rescue funding runs out.

With £1,800-worth of vouchers, our reader has a bigger problem than most

One problem for our reader is that he has so many vouchers.

No-one needs £5,400 of Pizza Express vouchers, or Railcard vouchers, or Alton Towers tickets. Many of the travel options are also restricted – the Hilton offer, for example, is OK but restricted to the UK and Ireland. I wouldn’t wish a tour of UK Hilton hotels on anyone …..

My best suggestion was this …..

Assuming that none of the package holidays deals looked attractive, I told the reader to look closely at

Tesco Clubcard to

With over 325,000 hotels globally, he won’t be stuck for options. There is no limit on redemptions – each booking can’t use more than £750 of converted vouchers, but you can back-to-back your stays for a longer trip.

There are reasons NOT to use, especially if you have hotel elite status. Hotels booked through them do not earn points and you won’t receive any status benefits. The reader didn’t say what his hotel elite statuses were.

It is also worth noting that bookings made with Clubcard points are non-refundable.

However, assuming no status, he is diversifying his risk by continuing to sit on his vouchers and assuming he can convert into down the road. This may be a better route than doubling up his existing 400,000 Avios to well over 800,000 Avios.

And here’s the maths behind it …..

Here is a mathematical reason to back up my thinking.

Let’s treat vouchers as worth 2.7x the face value of Clubcard points, instead of the advertised 3x.

£1 of Clubcard vouchers gets you £2.70 of credit or 240 Avios. This means the reader is ‘paying’ 1.125p per Avios (270/240) by giving up the vouchers and taking the miles intead.

However, Avios will regularly sell you points for a little less than 1.125p. There are a couple of 50% ‘buy Avios’ bonuses each year where you will pay just under 1.1p per point.

If 50% bonuses for buying Avios continue, there is no risk to our reader by opting for vouchers instead of Avios.

If he does decide that he needs more Avios down the line, he can use the money he saved on stays by using the vouchers to buy Avios in a future ‘50% bonus’ promotion. He is no worse off and he has reduced his risk by not going ‘all in’ with Avios now.

These are my thoughts. If you disagree with my thinking, please let us know in the comments below.


How to earn Avios from UK credit cards (March 2023)

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.

SPECIAL OFFER: Successfully apply for either of the Barclaycard Avios credit cards by 2nd April 2023 and you will be entered into a free draw to win ONE MILLION AVIOS! Full details are on the application forms here (free) and here (paid). This competition is exclusive to Head for Points readers. T&C apply.

You qualify for the bonus on these cards even if you have a British Airways American Express card:

Barclaycard Avios Plus card

Barclaycard Avios Plus Mastercard

25,000 Avios for signing up and an upgrade voucher for spending £10,000 Read our full review

Barclaycard Avios card

Barclaycard Avios Mastercard

5,000 Avios for signing up and an upgrade voucher for spending £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

25,000 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 £12,000 Read our full review

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

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

30,000 points and unbeatable travel benefits – for a 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

Get a 10,000 points bonus plus an extra 500 points for our readers Read our full review

You should also consider the British Airways Accelerating Business credit card. This is open to sole traders as well as limited companies and has a 30,000 Avios sign-up bonus.

British Airways Accelerating Business American Express

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.

Until 30th March 2023, the sign up bonus on American Express Business Platinum is increased to 120,000 Membership Rewards points – click here. The bonus on American Express Business Gold is increased to 60,000 Membership Rewards points – click here. T&C apply, see the application forms for details.

American Express Business Platinum

Crazy 120,000 points bonus (to 30th March) and a £200 Amex Travel credit every year Read our full review

American Express Business Gold

60,000 points sign-up bonus (to 30th March) 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.

Comments (122)

This article is closed to new comments. Feel free to ask your question in the HfP forums.

  • Nick says:

    I have only £45 of Tesco vouchers and only 5000 virgin miles. Am I correct in thinking If I convert enough vouchers to Virgin miles @625/£.250 taking my Virgin miles total to 10,000 I can then transfer this to another scheme?

    • Genghis says:

      Yes, but is it the right thing to do?

      So you’ll need 5k Virgin miles to true up to the 10k VFC miles. That equates to £20 of Tesco vouchers. Arguably worth £54 of vouchers, or £60 Tesco delivery saver etc.

      With the 10k Virgin points you can get 15k HHs (= £50 at 1/3p valuation) or 10k IHGs (= £40 at 0.4p valuation).

      In short, you’ll end up with something worth less than just the worth of the Tesco vouchers. I’d just leave things where they are and add to them.

      • Nick says:

        Genghis, brilliant, thanks for your response as you say leave as!

      • TGLoyalty says:

        Agree completely. Probably best just increasing your FC balance they no longer expire so should be good forever. I’d then look at ways to earn a few more FC points.

      • Nick_C says:

        Personally, I don’t agree. I would use £20 of CCP to add to the 5000 Virgin Points and convert to 15000 Hilton points worth £50. But I don’t think are a good use of Tesco points, I do actively collect Hilton points, and I still think it likely that Virgin points may be worthless if you leave them where they are.

        My example on the previous page shows that if I had used CCP to pay for my last booking, I would have got 1.85p of value for each CCP, not 2.7p, and I would have been making a non refundable booking instead of a flexible one.

  • TGLoyalty says:

    Take the 2.5x redemption and donate directly so they can at least claim the gift aid

  • Steve S says:

    Before I transfer I would like to see if Avios partner with another supermarket.

  • David says:

    Hello. I have 55000 avios points which I will never spend through British Airways. I understand I can no longer use them to buy wine etc. Are they worthless or is there any way I can spend them?

  • Charlieface says: is a good shout, there are very rarely in any discount codes.
    Whether you think their prices are worth it is another question

This article is closed to new comments. Feel free to ask your question in the HfP forums.

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