Which airline credit card is best for long term spending?

Many of the credit card articles on Head for Points are focused on sign-up bonuses.  Get a card, spend the minimum required to trigger the bonus and potentially move on.

However, if you are a medium to high spender, the few thousand pounds of card spend required each year to hit your sign-up bonus targets is not a stretch.  You need to consider where to put the rest of your annual spend.

This article can help you.

We hadn’t updated this article for three years because, frankly, it got too complicated. When the Barclaycard Avios Mastercards launched, and the BA Amex cards added 50% off solo redemptions, the number of permutations got too messy.

This is what we decided to do.

This article ONLY looks at the value you get when redeeming credit card vouchers in Business Class.

This allows us to cut all of the discussion about the free British Airways American Express card, because the Companion Voucher on that card is only valid for Economy flights.

If you are not interested in redeeming your Avios or Virgin Points for Business Class, this article won’t help you – although you can use our methodology to run similar calculations for Premium Economy or Economy.

We have also ignored the fact that you can also use your Virgin Atlantic credit card to get a 2-4-1 deal on a cash ticket, or to upgrade a cash ticket. It is impossible to work out the ‘value’ here because it is totally dependent on the price of Premium and Upper Class tickets when you book.

All of the calculations are based on flying Business Class / Upper Class to San Francisco. The conclusions may vary on other routes.

Part 1 – Travelling as a couple

We do not consider the Barclaycard Avios Mastercard cards in this section. The annual voucher can upgrade one return ticket or two one-way tickets, which means that you should use the numbers in the ‘Travelling solo’ section in Part 2 even if two are travelling.

Our ‘Excellent’ choices for long-term spending:

Virgin Atlantic Reward+ Mastercard – if you have elite status

Spend £10,000 on the Virgin Atlantic Reward+ Mastercard card and you can choose from:

• A 2-4-1 voucher, valid for two years, for a Virgin Flying Club redemption in any class, or
• A return upgrade – on either a cash or points ticket – from Premium to Upper Class, or from Economy Delight / Classic to Premium (requires reward availability in the higher class)

The most valuable option is using the card on a 2-4-1 points booking.

However, there is a catch.

If you are a Red (no status) member of Virgin Flying Club, you need to pay 50% of the points for your 2nd ticket if you redeem your 2-4-1 voucher in Upper Class.  This means that, for Upper Class redemptions for Red members, it is effectively a ‘2 for 1.5’ voucher.

The best value is if you have Silver or Gold status. The maths goes like this, based on two people flying to San Francisco in Upper Class for 155,000 Virgin Points each:

Based on a valuation of 1p per Virgin Point:

• the 2-4-1 voucher is ‘worth’ £1,550 (155,000 Virgin Points saving x 1p) and
• you also earn 15,000 base Virgin Points for spending £10,000 to trigger the voucher (worth £150 @ 1p) but
• the card fee is £160

The net benefit for a Silver or Gold member spending £10,000 on the Virgin Atlantic Reward+ Mastercard = £1,540 (£1,550 + £150 – £160) or 15.4% of spend.

Our full review of the card is here.

British Airways American Express Premium Plus card

Spend £15,000 (from 1st November 2024) on this card in a membership year and you get a voucher which gives you two Avios redemption tickets on BA, Iberia or Aer Lingus for the points of one.

The voucher also allows a solo traveller to book a return ticket for a 50% Avios discount – we look at this option later.

On a typical redemption (two Club World tickets to San Francisco on a peak day), this saves you 200,000 Avios points when you use the ‘most Avios, least cash’ booking option.

If you value an Avios at 1p:

• the 2-4-1 voucher is ‘worth’ £2,000 (200,000 Avios saving x 1p) and
• you also earn 22,500 base Avios for spending £15,000 to trigger the voucher (worth £225 @ 1p) but
• you pay an annual fee of £300

The net benefit for spending £15,000 on the British Airways American Express Premium Plus card = £1,925 (£2,000 + £225 – £300) or 12.8% of your card spend.

Our full review of the card is here.

Our ‘Very Good’ choices for long-term spending:

Virgin Atlantic Reward Mastercard (free) – if you have elite status

The vouchers on both Virgin Atlantic credit cards are identical – both are valid for two years and both are valid in all travel classes. The only difference is that the free card requires £20,000 of spending to trigger it.

This is how the maths goes, based on two people flying to San Francisco in Upper Class (155,000 points) and holding Silver or Gold status in Virgin Flying Club.

Based on valuation of 1p per Virgin Point, to match our Avios valuation:

• the 2-4-1 voucher is ‘worth’ £1,550 (155,000 Virgin Points saving x 1p) and
• you also earn 15,000 base Virgin Points for spending £20,000 to trigger the voucher (worth £150 @ 1p) and
• the card fee is £0

The net benefit for a Silver or Gold member spending £20,000 on the Virgin Atlantic Reward Mastercard = £1,700 (£1,550 + £150) or 8.5% of spend.

Our full review of the card is here.

Virgin Atlantic Reward+ Mastercard – if you do NOT have elite status

A ‘no status’ Red member of Virgin Flying Club has to pay half of the points required for the second flight if you redeem your 2-4-1 voucher in Upper Class.

Using our San Francisco Upper Class example, the 2nd ticket isn’t free (saving 155,000 Virgin Points) – you need to pay 50% (77,500 Virgin Points) for it.

This means:

• the 2-4-1 voucher is ‘worth’ £775 (77,500 Virgin Points saving x 1p) and
• you also earn 15,000 base Virgin Points for spending £10,000 to trigger the voucher (worth £150 @ 1p) but
• the card fee is £160

The net benefit for spending £10,000 on the Virgin Atlantic Reward+ Mastercard = £765 (£775 + £150 – £160) or 7.6% of spend.

Our full review of the card is here.

Our ‘Good’ choices for long-term spending:

Virgin Atlantic Reward Mastercard (free) – if you do NOT have elite status

A ‘no status’ Red member of Virgin Flying Club has to pay half of the points required for the second flight if you redeem your 2-4-1 voucher in Upper Class.

Using our San Francisco Upper Class example, the 2nd ticket isn’t free (saving 155,000 Virgin Points) – you need to pay 50% (77,500 Virgin Points).

This means:

• the 2-4-1 voucher is ‘worth’ £775 (77,500 Virgin Points saving x 1p) and
• you also earn 15,000 base Virgin Points for spending £20,000 to trigger the voucher (worth £150 @ 1p)
• the card fee is £0

The net benefit for spending £20,000 on the free Virgin Atlantic Reward Mastercard = £925 (£775 + £150) or 4.6% of spend.

Our full review of the card is here.

Part 2 – Travelling solo

Our ‘Very Good’ choices for long-term spending:

Virgin Atlantic Reward+ Mastercard

A return Upper Class flight to San Francisco is 155,000 Virgin Points on a peak date. A return Premium ticket is 75,000 Virgin Points. The voucher saves you 80,000 Virgin Points because you can book Upper Class for the points of Premium.

Based on a valuation of 1p per Virgin Point:

• the upgrade voucher is ‘worth’ £800 (80,000 Virgin Points saving x 1p) and
• you also earn 15,000 base Virgin Points for spending £10,000 to trigger the voucher (worth £150 @ 1p) but
• the card fee is £160

The net benefit for spending £10,000 on the Virgin Atlantic Reward+ Mastercard = £790 (£800 + £150 – £160) or 7.9% of spend.

Our full review of the card is here.

Our ‘Good’ choices for long-term spending:

British Airways American Express Premium Plus card

Spend £15,000 (from 1st November) on this card in a membership year and you can book an Avios redemption for one person at a 50% discount. You can fly on British Airways, Aer Lingus or Iberia.

On a typical redemption (a Club World ticket to San Francisco on a peak day), this saves you 100,000 Avios points when you use the ‘most Avios, least cash’ booking option.

If you value an Avios at 1p:

• the 2-4-1 voucher is ‘worth’ £1,000 (100,000 Avios saving x 1p) and
• you also earn 22,500 base Avios for spending £15,000 to trigger the voucher (worth £225 @ 1p) but
• you pay an annual fee of £300

The net benefit for spending £15,000 on the British Airways American Express Premium Plus card = £925 (£1,000 + £225 – £300) or 6.2% of your card spend.

Our full review of the card is here.

Barclaycard Avios Plus Mastercard

Spend £10,000 on the Barclaycard Avios Plus Mastercard in a membership year and you receive an Avios upgrade voucher.

This allows you to either:

• book a return Avios flight for one person, paying the Avios required for the next cheapest cabin (so World Traveller Plus if booking Club World, or World Traveller if booking World Traveller Plus)

• book two x one-way flights for two people, on the same terms as above

A return Club World business class flight to San Francisco on a peak day requires 200,000 Avios. A return World Traveller Plus ticket is 135,000 Avios. The upgrade voucher saves you 65,000 Avios when you book into Club World.

Based on a valuation of 1p per Avios:

• the upgrade voucher is ‘worth’ £650 (65,000 Avios saving x 1p) and
• you also earn 15,000 base Avios for spending £10,000 to trigger the voucher (worth £150 @ 1p) but
• the card fee is £20 per month, so £240 for a year

The net benefit for spending £10,000 on the Barclaycard Avios Plus Mastercard = £560 (£650 + £150 – £240) or 5.6% of spend.

Our full review of the card is here.

Virgin Atlantic Reward Mastercard (free)

A return Upper Class flight to San Francisco is 155,000 Virgin Points on a peak date. A return Premium ticket is 75,000 Virgin Points. The voucher saves you 80,000 Virgin Points when you book into Upper Class.

Based on a valuation of 1p per Virgin Point:

• the upgrade voucher is ‘worth’ £800 (80,000 Virgin Points saving x 1p) and
• you also earn 15,000 base Virgin Points for spending £20,000 to trigger the voucher (worth £150 @ 1p) and
• the card fee is £0

The net benefit for spending £20,000 on the free Virgin Atlantic Reward Mastercard = £950 (£800 + £150) or 4.75% of spend.

Our full review of the card is here.

Note: you can also use your Virgin Atlantic credit card to get a 2-4-1 deal on a cash ticket, or to upgrade a cash ticket. It is impossible to work out the ‘value’ here because it is totally dependent on the price of Premium and Upper Class tickets when you book.

Barclaycard Avios Mastercard (free)

Spend £20,000 on this card in a membership year and you receive an Avios upgrade voucher.

Note that the vouchers on both Barclaycard Avios credit cards are identical – both are valid for two years and both are valid in the same travel classes, with First Class excluded.

Using the same example as above, a return Club World business class flight to San Francisco on a peak day requires 200,000 Avios. A return World Traveller Plus ticket is 135,000 Avios. The upgrade voucher saves you 65,000 Avios when upgrading to Club World.

Based on a valuation of 1p per Avios:

• the upgrade voucher is ‘worth’ £650 (65,000 Avios saving x 1p) and
• you also earn 20,000 base Avios for spending £20,000 to trigger the voucher (worth £200 @ 1p) and
• the card is free

The net benefit for spending £20,000 on the free Barclaycard Avios Mastercard = £850 (£650 + £200) or 4.25% of spend.

Our full review of the card is here.

Conclusion

You might be slightly surprised by the numbers above.

There are two reasons why the Virgin Atlantic Reward+ Mastercard now scores better than the British Airways American Express Premium Plus card in some cases:

• the British Airways Premium Plus card is now £140 per year more expensive than the Virgin Atlantic Reward+ Mastercard, which impacts your return

• you now need to spend £15,000 to trigger the voucher on British Airways Premium Plus, compared to just £10,000 on Virgin Atlantic Reward+, which reduces your overall ‘return per £1 spent on your card’

Travelling as a couple in long haul business class?

The most rewarding credit card on the market is NOT the British Airways Premium Plus American Express card. It is the Virgin Atlantic Reward+ Mastercard.

Why? Primarily because the annual fee is low (£160) and you only need to spend £10,000 to trigger the voucher – at which point you can move on to another card and another reward.

BUT …. and it is a big ‘but’ …. you need to have Silver or Gold status in Virgin Flying Club to get this return.

If Virgin Atlantic scrapped this rule then I think we would see a lot more people adopt the card.

As it stands, if you don’t have Virgin Flying Club elite status, the British Airways American Express Premium Plus credit card remains – by far – the most valuable credit card for long term spending.

What is possibly more surprising is how badly the two Barclaycard Avios Mastercard products perform. However, for most people, these cards are a fall-back for times when American Express is not accepted – and if you can manage to trigger the annual voucher as well, it’s just an added bonus.

Travelling solo in long haul business class?

It’s a different story here. The Virgin Atlantic Reward+ Mastercard is, by far, the best option.

Remember that there are NO status restrictions on using your Virgin Atlantic Reward+ Mastercard to upgrade to Upper Class. You only need elite status when using it as a 2-4-1 voucher.

The British Airways American Express Premium Plus card, the free Virgin Atlantic Reward card and the two Barclaycard Avios Mastercards all offer roughly the same return to a solo traveller who wants to fly in business class – but the Virgin Atlantic Reward+ card clearly beats all of them.

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Want to earn more points from credit cards? – December 2024 update

If you are looking to apply for a new credit card, here are our top recommendations based on the current 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:

You can see our full directory of all UK cards which earn airline or hotel points here. Here are the best of the other deals currently available.

SPECIAL OFFER: Until 14th January 2025, the sign-up bonus on ‘free for a year’ American Express Preferred Rewards Gold is increased to 30,000 Membership Rewards points. This converts into 30,000 Avios. Click here to apply.

SPECIAL OFFER: Until 14th January 2025, the sign-up bonus on The Platinum Card from American Express is increased to 80,000 Membership Rewards points. This converts into 80,000 Avios! The spend requirement is changed to £10,000 in six months for this offer. Click here to apply.

Earning miles and points from small business cards

If you are a sole trader or run a small company, you may also want to check out these offers:

For a non-American Express option, we also recommend the Barclaycard Select Cashback card for sole traders and small businesses. It is FREE and you receive 1% cashback when you spend at least £2,000 per month.