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, Hotels.com booking etc.

In many cases, you are NOT getting a genuine 3x. With Hotels.com, for example, Clubcard bookings do not earn Hotels.com 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 Hotels.com.

Tesco Clubcard to hotels.com

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 Hotels.com, 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 Hotels.com 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 Hotels.com 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 Hotels.com 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 Hotels.com credit or 240 Avios. This means the reader is ‘paying’ 1.125p per Avios (270/240) by giving up the Hotels.com 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 Hotels.com 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 Hotels.com 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 (August 2022)

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 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 BA Premium Plus American Express Amex credit card

British Airways American Express Premium Plus

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

British Airways BA Amex American Express card

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.

EDIT: Until 25th October 2022, there is an exceptionally generous sign-up bonus on The Platinum Card. You will receive 60,000 Membership Rewards points – double the usual amount – and £200 to spend at Amex Travel. You need to spend £6,000 within six months to earn the bonus.

American Express Amex Gold

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

60,000 points, £200 travel credit and an unbeatable set of 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 10,000 Avios.

Capital On Tap Business Rewards Visa

10,500 points bonus – the most generous Avios Visa 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 and has a 30,000 Avios sign-up bonus.

British Airways Accelerating Business American Express card

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.

Amex Platinum Business American Express

American Express Business Platinum

40,000 points sign-up bonus and a long list of travel benefits Read our full review

American Express Business Gold

20,000 points sign-up bonus 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.

(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)

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

  • Liz says:

    *half not have

  • Nick says:

    Rob, I’ve seen reference to ‘commercial Avios proposition changes’ from January. Do you know anything about what this might be? Minor tweaks or full-scale revolution?

  • RussellH says:

    A completely different option for Tesco vouchers is a charitable donation.
    https://secure.tesco.com/clubcard/donate-to-charity
    Current options are Trussell Trust, British Heart Foundation, Cancer Research UK, Diabetes UK, Fare Share.
    All charities are under enormous pressure at present, but my personal choice at present would be the Trussell Trust. Demand at Food Banks has risen very significantly over the last few months – reports in the national press.
    And from personal experience, I have had to issue many more food vouchers for people to collect from our local Food Banks compared with earlier this year.

    • The real John says:

      It would make more sense to choose a clubcard redemption at 2.5x value and donate to the charity directly.

      You could even donate 2x the clubcard voucher value which would be a win-win for yourself and the charity.

      If you are going to spend the vouchers in Tesco at 1x, I suppose it is marginally more efficient to donate them since the charity will get a single payment from Tesco rather than many small payments from individuals.

      • Charlieface says:

        +1
        This is the real reason why you shouldn’t do it

      • Lady London says:

        Not sure how long Tesco will take to hand the money over to charity though. Personally I’d give the cash to the charity direct as then I’d know the charity has it to help people now.

    • blenz101 says:

      Pretty depressing if any of the target readers from this website looking to maximise the value of their points and miles decides to donate any significant amount of Tesco vouchers into a charity donation which ultimately benefits the supermarket itself.

      Charity is fine and I don’t begrudge anybody making a cash donation, it may even have a tax advantage.

      However, encouraging Tesco to donate on your behalf is not the way to go. Food banks already act as a dumping ground for their waste whilst allowing them to claim what great corporate citizens they are. Why should they also get to talk about how much cash they have donated to these charities when it is actually the generosity of their customers rather than a corporate who won’t even pay its staff a living wage.

      There is obviously a political argument here about the role of the state acting as a safety net and if by encouraging charity to take up that role (even funding redistribution efforts of waste food) is good for society. That isn’t really a debate for this site but I did want to make the point about not making your charitable donations via Tesco as a not the way to go.

      • ken says:

        “I don’t begrudge anybody making a cash donation”

        That’s very generous of you

        • blenz101 says:

          My point was that I was not objecting to charitable giving but strongly objecting to to making a dontation via Tesco. As others have also said, it is the worst option available.

    • TGLoyalty says:

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

  • Tony says:

    That is a really good option because as you say pretty much all charities are having an extremely difficult year.

    • blenz101 says:

      It’s a terrible option. Even if you just spent your vouchers in Tesco at face value and gave the equivilent amount to a charity in cash at least the charity could claim Gift Aid and benefit from an extra 25p in the £.

      Awful suggestion on many levels.

  • uarter says:

    Is there a 2 week cut-off before the end of quarter to convert points into Faster Vouchers? i.e. 4th Jan 2021
    Not sure if I’m getting confused with this, but if so, could catch a few people out if they’ve got a decent points balance from the quarter still to convert.

    • ChrisC says:

      Rob addressed that in the very first sentence of the article

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

  • Mark says:

    We’re in a similarish situation with around £1000 at face value between us, built up over an extended period of time. With it now being much harder to obtain both Clubcard and Amex MR points I was expecting to run them down over the coming year or two with many going to Avios. I’m thinking half to Avios which will give us a good stash for our next 2for1 redemption and keep back the other half for Virgin and/or Hotels.com.

    Virgin is much more attractive (assuming it survives of course) now the credit card vouchers can be used for PE to UC upgrades without status. More attractive to use two vouchers for both of us on a return trip in most cases than to use one voucher as a 2 for 1.5 on an UC redemption.

  • Michael says:

    Did anyone receive the 3000 cc points for Tescp Pet Insurance.
    I never received mine, I paid 4 premiums of £ 5.xx each beforeI cancelled Will try to chase again.

    • Reds says:

      My points were sent to my daughter’s Clubcard account. If you have other household (same address) with Clubcard accounts, worth checking up the other accounts.

  • 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 hotels.com 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 Hotels.com 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 Hotels.com 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.

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