Even 0.5p isn't bad in some circumstances. A Silver flying Y to San Francisco would be earning 25,000 Avios, that is £125 of hotel nights - potentially 25% cash back on the fare. And if the ticket isn't self-paid, £125 of free hotel is very attractive and might make that business trip down the back look a lot more attractive, and a lot more likely to be booked on BA.

It is also worth noting that BA already offers free hotel nights via OnBusiness. As a comparison, a night in a Marriott is 2,000 - 4,500 points, with a 2k hotel being, for eg, Lisbon Marriott, Bristol / Leeds Marriott or a Courtyard in a big city like Paris - say £75-100 of value. A Y return to a Zone 1/2 country, for comparison, is 3,120 OB points plus taxes. A Club World return to the US East Coast is 19,000 OB plus taxes. On these sort of comparisons, the hotel alternative is not terrible. Not a bargain, clearly, but not terrible.