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 points from UK credit cards

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

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

There are two official British Airways American Express cards. Both have increased sign-up bonuses until 2nd November 2021:

British Airways BA Amex American Express card

British Airways American Express

10,000 Avios for signing up, no annual fee and an Economy 241 voucher for spending ….. Read our full review

British Airways BA Premium Plus American Express Amex credit card

British Airways American Express Premium Plus

40,000 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 – 30,000 points, FREE for a year & two airport lounge passes Read our full review

American Express Platinum card Amex

The Platinum Card from American Express

60,000 points and an unbeatable set of travel benefits – for a fee Read our full review

The 30,000 points bonus on Amex Gold runs to 9th November 2021. The 60,000 points bonus on The Platinum Card runs to 2nd November 2021.

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:

Capital On Tap Business Rewards Visa

The most generous Avios Visa or Mastercard for a limited company 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. This card has a limited time offer of 60,000 Avios when you sign up:

British Airways Accelerating Business American Express card

British Airways Accelerating Business American Express

60,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios 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.

(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 (123)

  • 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

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