Avios to Nectar conversion rate change

[2ilent8cho]

Just had an email saying its going down from 400 Nectar points for 250 Avios to 300 Nectar Points . Nectar to Avios stays the same. Disappointed as I’ve managed to do 50,000 Avios to 80,000 Nectar for the last 14 months. Guessing they don’t like how many are converting that direction.

Edit: I typed it wrong as rahaney pointed out, it’s moving from 400 nectar for 250 avios to 400 nectar for 300 avios.

[Jimbob]

Yep, downgrade to equivalent of 0.67p per avios from 0.8p.

Conversion the other way unchanged, so potential for some free avios, if you convert from avios to nectar and back again.

Good while it lasted.

[rahaney]

You’ve misread the email. It’s moving from 400 nectar for 250 avios to 400 nectar for 300 avios. Still a devaluation…

[stevenhp1987]

From when?

[rahaney]

stevenhp1987 wrote:

From when?

16/11/22

[Scott]

Not had the email yet, but an imbalance in a transfer scheme seems weird to me. Do any other schemes work on this basis? I suppose it’s effectively a surcharge on transferring from A to B, that doesn’t apply in reverse.

[duggie1982]

I am about 50/50 split, had my eye on a flight CW with 66000 points and BC upgrade voucher but was not planning to book until next month.

Where is best to store my points now do you rekon?

[alig4th]

So move as many Avios into Nectar today for an increase trade back in a few weeks? Or am I getting it muddled?

[FFoxSake]

alig4th wrote:

So move as many Avios into Nectar today for an increase trade back in a few weeks? Or am I getting it muddled?

If the rate to convert Nectar to Avios is not changing then that will be net zero for you.
It’s only if you want to spend Avios as Nectar that you need to transfer in the next 2 weeks to avoid the devaluation.

[jjoohhnn]

This is the e-mail text

Dear xxx,

We wanted to let you know that from 16 November 2022, the conversion rate of Avios to Nectar points will be changing.

When converting Avios to Nectar points, you currently receive 400 Nectar points for every 250 Avios converted. From 16 November 2022 that will change to 400 Nectar points for every 300 Avios that you convert. The Nectar to Avios conversion rate will remain the same.

This change will take place automatically and your British Airways Executive Club and Nectar accounts will continue to be linked so you don’t need to do anything.

Find out all you need to know about the change by clicking on Learn more below.
Link is to: https://exchange.shopping.ba.com/partner/nectar

[Guernsey Globetrotter]

FFoxSake wrote:

alig4th wrote:

So move as many Avios into Nectar today for an increase trade back in a few weeks? Or am I getting it muddled?

If the rate to convert Nectar to Avios is not changing then that will be net zero for you.
It’s only if you want to spend Avios as Nectar that you need to transfer in the next 2 weeks to avoid the devaluation.

THIS! – Convert from Avios to Nectar NOW for flexibility (you can always transfer back as the rate in that direction is reportedly not changing so your net Avios balance would not change). At least this way if you decide to spend the Nectar points you are getting 0.8p per Avios rather than 0.67p. Overall a devaluation of nearly 17% on the base valuation of Avios. I guess too many of you were transferring your airmiles pots out to buy groceries for the liking of BAEC!

[alig4th]

But if I have 250 Avios today I can convert that into 400 Nectar.

Then, after mid-November, I can send those same 400 Nectar back to be worth 300 Avios?

Actually, if the Avios-Nectar rate isn’t changing then, going forward, I can keep converting 250 Avios = 400 Nectar, then turning those 400 Nectar straight back into 300 Avios?

Surely that can’t be right, and there’s something else we’re missing?

Although, along with Avios subscriptions and revenue-based collecting on BA, there’s clearly some move

[jjoohhnn]

It implies the rate to convert back to Avios isn’t changing. So..

– If you convert 250 Avios now to nectar, you will get 400 nectar points
– After 16 November you convert 400 Nectar back to Avios, you will get 250 Avios (so it will be the same).

After 16 November:
– If you convert 300 Avios you will get 400 Nectar.
– If you convert 400 Nectar back to Avios you will only end up with 250 Avios

So you will lose some points in the process..

[John]

Basically you can still “buy” avios for 0.8p

But if you want to cash out your avios you will only receive 0.666p

[FFoxSake]

alig4th wrote:

Then, after mid-November, I can send those same 400 Nectar back to be worth 300 Avios?

No. According to the email “The Nectar to Avios conversion rate will remain the same.”
e.g.
Today you can spend 250 Avios to get 400 Nectar.
You can then spend 400 Nectar to get 250 Avios back.
= Net zero.

After 16/11 you will spend 300 Avios to get 400 Nectar (rate change).
You can then spend 400 Nectar to get 250 Avios (no rate change).
= You lose.

[alig4th]

Ah, misinterpreted the original poster’s wording

[ed_fly]

alig4th wrote:

But if I have 250 Avios today I can convert that into 400 Nectar.

Then, after mid-November, I can send those same 400 Nectar back to be worth 300 Avios?

Actually, if the Avios-Nectar rate isn’t changing then, going forward, I can keep converting 250 Avios = 400 Nectar, then turning those 400 Nectar straight back into 300 Avios?

Surely that can’t be right, and there’s something else we’re missing?

Although, along with Avios subscriptions and revenue-based collecting on BA, there’s clearly some move

today 400 nectar points converts to 250 Avios, and 250 Avios -> 400 nectar points. Going forward 400 nectar -> 250 Avios, 300 Avios -> 400 nectar points.

So after the devaluation, if you start with 300 Avios and transfer to nectar you will have 400 nectar points, if you then reconverted those 400 nectar to Avios you’d have 250 Avios. So you’d lose 50 Avios on the way.

No way of gaming the system to increase Avios, but potentially more flexibility my moving to nectar before the change.

[SamG]

At least we’ve got had some notice. Can’t say I’m surprised, it seems a little generous and I’ve been moving across quite a large amount of points as have others that I know. Shall go and make some transfers now!

[Harrier25]

I’m sure Rob will release an article on this change in the coming days.

[Guernsey Globetrotter]

John wrote:

Basically you can still “buy” avios for 0.8p

But if you want to cash out your avios you will only receive 0.666p

@John has summarised perfectly, as is often the case. The new Avios to Nectar conversion rate is less attractive in more than one way now !

[Pointofview]

The race to the bottom seems to be getting faster by the day not the week.

[Harrier25]

Rob has now posted an in-depth news article about this subject.

[Guy Incognito]

Guernsey Globetrotter wrote:

THIS! – Convert from Avios to Nectar NOW for flexibility (you can always transfer back as the rate in that direction is reportedly not changing so your net Avios balance would not change). At least this way if you decide to spend the Nectar points you are getting 0.8p per Avios rather than 0.67p. Overall a devaluation of nearly 17% on the base valuation of Avios. I guess too many of you were transferring your airmiles pots out to buy groceries for the liking of BAEC!

Maybe they should look at the reason why people were doing that?!

I have a substantial balance of Avios. The ludicrous surcharges applied to long haul redemptions (and lack of availability) means they were just sitting there.

The next step for me is to explore cashback credit cards. AmEx points in theory are great, and we’ve got millions of them spread around different places, but the theoretical potential “wins” from hotels, flights etc are all being stripped away so I’d rather have a set cashback.

[Rob]

The best cashback non-Amex remains the free Barclaycard Avios card, tranferring to Nectar. More than 2x better than the next best option.

[The Urbanite]

Guy Incognito wrote:

Guernsey Globetrotter wrote:

THIS! – Convert from Avios to Nectar NOW for flexibility (you can always transfer back as the rate in that direction is reportedly not changing so your net Avios balance would not change). At least this way if you decide to spend the Nectar points you are getting 0.8p per Avios rather than 0.67p. Overall a devaluation of nearly 17% on the base valuation of Avios. I guess too many of you were transferring your airmiles pots out to buy groceries for the liking of BAEC!

Maybe they should look at the reason why people were doing that?!

I have a substantial balance of Avios. The ludicrous surcharges applied to long haul redemptions (and lack of availability) means they were just sitting there.

The next step for me is to explore cashback credit cards. AmEx points in theory are great, and we’ve got millions of them spread around different places, but the theoretical potential “wins” from hotels, flights etc are all being stripped away so I’d rather have a set cashback.

Redemption availability does seem to be worse now than pre-covid. Groceries are a big outgoing so I wouldn’t blame anybody who does transfer to Nectar.

Sadly I think the best has been had from cashback cards! Slim pickings these days unless eligible for business credit cards!