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Old Jan 21, 2012 | 9:41 am
  #434  
Paralytic
 
Join Date: Jan 2009
Location: Near Edinburgh
Programs: BA Silver
Posts: 9,034
Originally Posted by mdj1
heres a good one for the Avios team. Explain to me why it costs £15-20 to purchase 1000 Avios depending on how many one buys. If you book a hotel with avios and you use Avios points they only redeem you between $6-8 per 1000 Avios.
I'm really surprised you have to ask. The answer is simple: Capitalism - sell something for more than it costs you to produce. Couple that with supply and demand, and willingness to pay, and its really not that difficult.

Would you really expect it to be the other way around where its cheaper to buy than it is to redeem?
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