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What is an Avios point worth?

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I am often asked for my thoughts on how to value an Avios point.  In our articles we use 1p as a ball-park figure, and it is the value I use myself, but the real world is more complicated.

For the value of the new readers who always join us in January, looking to plan travel for the year ahead, I want to run through my thinking again today.

What is an Avios worth TO YOU?

The value of an Avios point to you is based on numerous factors:

where you fly

what cabin you fly in

whether you normally use a British Airways American Express 2-4-1 voucher and (the one rarely considered)

what class and/or airline you would pay for if Avios flights were not available

You need to know how YOU value an Avios because it impacts on what you are willing to pay for them.

What is an Avios point worth?

We occasionally see offers which allow you, indirectly or directly, to pick up Avios for 0.75p to 1p each.  Should you jump in at these prices?  You can’t be sure unless you have valued your Avios for your personal circumstances.

You need to be sure that you are getting substantially more for an Avios than your cost price to make it worthwhile.  This is especially true because you are substituting something very liquid – cash – for something that is not very liquid at all.

The same goes for Avios-earning credit cards.  Once you’ve got your British Airways Premium Plus American Express ‘2 for 1’ voucher in the bag, you need to know whether 1.5 Avios per £1 is a better deal than a cashback credit card or, say, 2 Marriott Bonvoy points per £1 via the Marriott Bonvoy American Express.  If not, your British Airways Premium Plus Amex card can go back in the drawer.

Here are six different Avios scenarios – which is right for you?

Instead of answering the question of Avios value directly, I devised six scenarios for an Avios redemption.  As you can see, each puts a different value on an Avios point.

Before we start, remember that Avios points definitely have a ‘floor’ value. There are various non-flight redemptions available for Avios via ba.com such as wine, travel ‘experiences’ or hotels.   In general, you receive around 0.5p per point when you do this.

‘Part Pay With Avios’ adds another dimension.  Depending on the route and class you are booking, you will receive between 0.55p and 0.8p when redeeming Avios towards a British Airways cash ticket.

If you ever have the opportunity to acquire Avios for less than 0.5p, you will definitely come out ahead.  Whether higher valuations make sense depends on how you spend them.

Here are some potential Avios redemption scenarios.  Which one is right for you?

What is an Avios point worth?

1. Andrew takes two long-haul holidays a year with his wife and two children, requiring four Club World tickets per trip.

Let’s assume these are 120,000 Avios per seat Club World redemptions (eg Dubai, Boston). One of the two holidays uses the 2 x British Airways American Express 2-4-1 vouchers which Andrew and his wife earn each year.

Let’s assume £533 of taxes per ticket – the curent figure to Dubai.

Andrew is financially well off.  He redeems on leisure routes (Middle East, Caribbean etc) where in a BA or other airline sale a Business Class cash ticket during the school holidays would cost around £1,499 return.  He can afford to pay cash if necessary.

Total Avios spent per year for two holidays = 720,000 for eight people across two trips (6 x 120k, adjusting for the 2-4-1’s).  This assumes that all the flights are at peak pricing periods.

Value received: £1,499 per flight if paying cash – £533 taxes on Avios tickets = £966 per seat x 8 tickets = £7,728

Value received per Avios = 1.07p

1.07p is a ‘real’ saving since Andrew would pay cash in a sale for Business Class seats if necessary.  There is intrinsic extra value from the ability to cancel the Avios seats if needed. However, the calculation ignores the miles and tier points that cash tickets would bring.

If one of these trips fell into an off-peak period, saving 20,000 Avios per person (80,000 Avios in total), then the value would increase to 1.20p.

The annual fee for the two British Airways Premium Plus credit cards is not factored into this analysis.

What is an Avios point worth?

2. Jez and Louise live in the South East and use their Avios to do European short breaks, flying Economy from Friday to Sunday. They do not spend enough to be able to generate a BA Amex 2-4-1 voucher, and do package holidays for their ‘main’ holidays.

Avios required for an Economy flight to Prague: 9,000 plus £35 taxes based on a peak weekend.

I have used the ‘mid point’ pricing because this is generally the best value of the various ‘cash and Avios’ combinations offered by BA.

British Airways cash price: £180 per person for a shoulder season ticket on a ‘hand baggage only’ fare, booked three months in advance.  However, Jez and Louise would use easyJet from Gatwick if Avios seats were not available, with a typical price (out Fri, back Sun) of £150.

Value received per Avios = 1.28p.

This is a ‘real’ saving compared with the easyJet price. There is extra value from the ability to cancel the Avios ticket.

If Jez and Louise travel on an off-peak weekend the cost of the trip would fall to 8,000 Avios per person which takes the value per Avios point up to 1.43p.  The value also goes up if they would take checked luggage, since Avios tickets allow one free suitcase per person.

What is an Avios point worth?

3. Glynn and Sarah live in Yorkshire and use their Avios to do European short breaks, flying Economy via Heathrow. They do not spend enough to be able to generate a BA Amex 2-4-1 voucher, and do package holidays for their ‘main’ holidays.

Avios required for an Economy flight to Prague from Manchester via Heathrow: 18,000 plus £70 taxes on a peak weekend

BA cash price:  Not comparable as they would fly Jet2 from East Midlands if they could not use Avios.  Typical cash price for a shoulder season weekend, booked three months in advance, is £170.

Value received per Avios = 0.55p

Glynn and Sarah would be crazy to transfer in Heathrow and add two hours to their travel time for such a poor return.  It would make more sense to redeem their Avios points for a hotel room in Prague and receive around 0.5p per point.

Even if Glynn and Sarah travel off-peak, it remains poor value.  At 16,000 Avios per person the value per Avios point only increases to 0.62p and in reality the direct Jet2 flight would be cheaper off-peak too.

What is an Avios worth?

4. David is single and happy to take an odd routing if necessary. He only flies Economy when using his own money but is happy to fly Business Class when using Avios. He would normally spend around £350 on a holiday flight to New York in Spring.  He lives in the South East.

David flies Iberia in Business Class from Madrid to New York for 68,000 Avios + £160 in tax return, based on an off-peak date (plus 15,000 Avios + £35 for a British Airways Economy flight to Madrid from Heathrow to position).  His total cost is 83,000 Avios plus £195.

Value received per Avios (based on £350 cash for a direct flight): Not clear   

David has spent £155 less in money than the cost of an Economy cash ticket, and gets to fly in Business Class instead, but obviously using 83,000 Avios to save £155 is not smart. 

The real value, of course, is that he is flying Business Class and not Economy but he would never pay for Business Class.  How should he judge the value?  

He knows that he giving up around £500 of free hotels rooms by choosing to use his 83,000 Avios for the flight instead of for a hotel booking in New York, so presumably he must value the upgrade at least this highly.

What is an Avios point worth?

5. Alex and Nicky earn enough Avios per year for one long-haul redemption to California in Club World, using their BA Amex 2-4-1 voucher. They would be willing to pay £1,750 each for a cash ticket in a BA sale or flying BA ex-Europe. Taxes will be £660 per person.

This is potentially the most likely scenario for a Head for Points reader without children.  You use using one 2-4-1 voucher per year for one major redemption for a couple.

Alex and Nicky spend 150,000 Avios (with the BA American Express 2-4-1 companion voucher) and pay £1,320 of taxes. This assumes they travel in a peak period.  The cash alternative would have been £3,500 for two.

Value received per Avios: 1.45p

This is a ‘real’ saving because they would pay cash otherwise. They also gain cancellation flexibility which a cash ticket would not have, although they lose out on the Avios and tier points earned on a cash ticket.

The value increases to 1.74p if they travel to California in an off-peak period for 125,000 Avios.

The annual fee for the British Airways Premium Plus credit card is not factored into this analysis.

What is an Avios point worth?

6. Charles and Vicky also do one long-haul redemption each year to California in Club World. They earn fewer Avios than Alex and Nicky, so prefer to ‘Upgrade Using Avios’ a World Traveller Plus ticket to Club World.  They expect to pay £900 in a BA sale for their WTP ticket and would pay up to £1,750 for Club World.

The ‘miles for upgrade’ cost of this ticket would be 50,000 Avios per person during a peak period. This saves them £850 per person on the cost of the Club World ticket.

Value received per Avios: 1.7p

This is a ‘real’ saving because they would pay for Club World if necessary.

If Charles and Vicky travel off-peak, the value per Avios point DROPS to 1.42p.  This is because the cost of upgrading World Traveller Plus to Club World is higher – at 60,000 Avios – during off-peak periods.  Crazy but true.

What is an avios worth?

What about First Class?

You will notice that none of these people flies First. That is because very few of us would pay cash for First, even if we would pay cash for Business Class. The additional Avios you spend for First over Club World give you intrinsic satisfaction and perceived value, but do not translate to a hard cash saving.

(In the last example, if Charles and Vicky would never pay £1,750 for Club World but would pay £900 for World Traveller Plus, then the 1.7p valuation per point is NOT ‘real’ because they would never have spent the extra money for business class in the first place.)

If you earn your Avios for free by flying, the value you get per point is not a concern. However, let’s assume you earn your miles via an Amex credit card at a net cost of (say) 0.5p per Avios.  There is a cost to these ‘free’ Avios because you could earn a different reward from other credit cards if you wished.

In this case, you need to understand that the extra 50,000 Avios for First over Club World to California is actually costing you £250 (50,000 x 0.5p) in lost rewards from other cards.

Whether that is good value is down to you – but if you’ve paid for the Avios, you need to understand the choice you make.

What about long-haul economy redemptions?

You will notice that none of these people flies British Airways long-haul economy.  This is generally a poor use of Avios points because of BA’s taxes and charges.

However, the guaranteed availability of four Avios seats per flight at peak periods may lead to times when economy redemptions do offer value.

As an example, an off-peak redemption to San Francisco in World Traveller / Economy is 32,500 Avios plus £350.  Any cash price of over £600 would see you getting 0.75p+ per Avios of value, although this would be rare at off-peak periods.

How should you value your Avios?

How YOU value an Avios is totally dependent on how you use them.

As I have shown above, there are good deals to be had in the right circumstances.  It is, easily, possible to get over 1p of value per Avios point.


how to earn avios from credit cards

How to earn Avios from UK credit cards (May 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.

Do you have a small business? Until 20th May 2021, you can receive a special sign-up bonus worth 29,900 Avios with the Capital On Tap Business Rewards Visa credit card. This offer is exclusive to Head for Points readers. Click here to learn more.

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 (60)

  • Tracey says:

    At the moment I’m giving them a negative value. Generally do 2 long haul a year in CW. Some combination of Avios, 2-4-1 and GUF. Long haul got cancelled due to lockdown 2, desperate to get away early December, no Avios or GUF availability, absolute refusal to travel 11 hours in Y after becoming used to J, so paid ££££ for CW. If we hadn’t become so used to J, we wouldn’t have been spending the money. 😉

  • Ianmac says:

    My particular circumstances (due to cancelled holiday flights etc) have left me with
    A) 3 ticket vouchers CW to BKK (includes 350,000 Avios, 2-4-1 voucher and 2xGGL Upgrade vouchers + ~£2k taxes/fees) – to be used by end April 2022
    B) One other 2-4-1 voucher (expiry end April 2022)
    C) Mothballing my BA PP Amex card until June 2021 as I have nearly triggered this ‘year’s’ 2-4-1 voucher.
    BA has already suspended UK-BKK flights until late 2021 and the list of Summer 2021 destinations is rapidly diminishing on a “would I want to go there ?” or “will they let me in?” basis.
    Rob and I had off-line correspondence regarding buying Avios to specifically use with 2-4-1 voucher redemptions – the new issue will be the reduction in any reasonable value that we have become accustomed to from our previous use of 2-4-1’s !!

    • Ianmac says:

      And due to current circumstances, I’m not flying so not earning the usual stash of BA avios – currently earning more Avios via ScrewFix spend !! (as well as BAPP Amex spend)

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