Originally Posted by
Geordie405
I am not sure that the "higher status paradoxically reduces the value of Avios" statement holds true, or maybe I am just misunderstanding it. Higher status holders earn more Avios for a given journey and hence the cost per Avios earned is lower. However, when it comes to redeeming Avios the cost is identical irrespective of what status you hold. When it comes to considering the value of Avios I'd be looking at the number of Avios required for a specific flight, not what it cost to acquire those Avios in the first place.
I think OP is referring to the 'foregone' Avios you would have earned by paying for the same ticket with cash.
For example, if I do not have status with BA and there is a ticket that costs £100, would award me with 500 Avios and costs 10,000 avios as a reward ticket. Really I am 'spending' 10,500 avios to save that £100, since I have lost the opportunity to earn 500 Avios by purchasing the ticket with Avios.
However if you take the exact same example but as BA Gold, who would earn 1,000 Avios for the same cash ticket, they would be 'spending' 11,000 Avios if they made the purchase as a reward ticket.