Is BA about to devalue Avios?
Aug 25, 2014, 12:41 am
#61
Join Date: Dec 2007
Location: ORD
Programs: BA, AA, SQ, UA, AC, WS, MR TIT
Posts: 8,659
Aug 25, 2014, 12:50 am
#62
Join Date: Jan 2010
Location: N.Wales, UK
Posts: 933
2. A devaluation is inevitable - to date it has been managed through tighter award inventory, and though it is feasible that this (form of devaluation) could continue I would expect a similiar change to IB (either less avios given out or the redemption levels to be increased) in the future.
If they do devalue, then one would hope a bit more availability might appear.
Aug 25, 2014, 1:01 am
#63
Join Date: Jan 2008
Location: in your favourite lounge, clearing the whole buffet
Programs: LH Maximizer of the year, BA Blue Label killer
Posts: 1,001
EUR 5.02XR
EUR 18.92DL
EUR 1.82TQ
EUR 7.76QN
QN and DL tax are billed by percentage on the gross fare, hence they should not be applicable to award tickets since gross is 0. So the real taxes are only TQ and QN which should apply.
Aug 25, 2014, 1:32 am
#64
Suspended
Join Date: Jul 2001
Location: Watchlisted by the prejudiced, en route to purgatory
Programs: Just Say No to Fleecing and Blacklisting
Posts: 102,095
If such bonus had shown up this year, then I would have likely moved over several hundred thousand more Amex MR points to BA and turned into a glutton for BA punishment by way of BA points devaluation.
Aug 25, 2014, 1:56 am
#65
Join Date: May 2013
Location: MAD
Programs: IB+, BAEC
Posts: 3,106
Let me chime in as an IB flyer. IB Avios have pretty much always only been useful for flights on IB and its airlines or Vueling as well as some specific partners that you can't get on BA like Avianca and Royal Air Maroc (though probably better to just pay cash now).
That said, the portal for partner flights is particularly bad on IB and it has pretty much always been worth the trouble to transfer to BA and then redeem, especially for US domestic. Avios.com, Iberia Plus, and BAEC are all independent organizations that just share a currency but make decisions independently. As was mentioned things started pretty much equal, mostly out of an ease of set-up. As each group tweaks, the differences will appear more. If US domestic flights weren't profitable with the current arrangement, they wouldn't have continued this long.
In short, I see nothing to really worry about.
That said, the portal for partner flights is particularly bad on IB and it has pretty much always been worth the trouble to transfer to BA and then redeem, especially for US domestic. Avios.com, Iberia Plus, and BAEC are all independent organizations that just share a currency but make decisions independently. As was mentioned things started pretty much equal, mostly out of an ease of set-up. As each group tweaks, the differences will appear more. If US domestic flights weren't profitable with the current arrangement, they wouldn't have continued this long.
In short, I see nothing to really worry about.
Aug 25, 2014, 2:21 am
#66
FlyerTalk Evangelist
Join Date: Feb 2004
Location: London
Programs: BA, VS, HH, IHG, MB, MR
Posts: 26,871
Worth remembering that oneworld (inc BA) redemptions using IB were non refundable (can't remember if also non-changeable) and presumably still are.
They never wanted anyone to redeem outside IB in the first place.
They never wanted anyone to redeem outside IB in the first place.
Aug 25, 2014, 3:07 am
#67
Ambassador, British Airways Executive Club, easyJet and Ryanair
Join Date: Sep 2011
Location: UK/Las Vegas
Programs: BA Gold (GGL/CCR)
Posts: 15,928
Can't quite book yet but thinking of doing so ASAP. Anyone know what the affect will be if I book now and change dates in a few months?
Aug 25, 2014, 5:55 am
#70
Join Date: May 2014
Location: London
Posts: 198
Aug 25, 2014, 6:03 am
#71
Join Date: May 2011
Posts: 2,379
Just curious, do you happen to know what LAN charge for the actual taxes, fees and fuel surcharges (if any) for that route, i.e. any amount other than the actual fare component?
I am wondering if IB is covering some of that component with Avios, whereas BA isn't, or BA is taking in cash what they "don't" charge in Avios, or a combination of both, because the cash component difference seems fairly large.
I'm basically trying to see if there is a model difference between the two in terms of cash component.
I am wondering if IB is covering some of that component with Avios, whereas BA isn't, or BA is taking in cash what they "don't" charge in Avios, or a combination of both, because the cash component difference seems fairly large.
I'm basically trying to see if there is a model difference between the two in terms of cash component.
Well obviously. Their point was that although saying the revenue from miles is tiny in comparison to the revenue from flights is correct, it's the profit you need to compare not revenue. The profit margin on flights is tiny whereas it's huge on selling miles - so the difference between them with regards to profit will be much smaller.
Aug 25, 2014, 6:04 am
#72
Join Date: May 2012
Location: Munich, Algarve, Sussex or S.F Bay Area
Programs: Mucci, BA Gold, A3*Gold, AA Plat, HH Gold, IHG Plat Amb, Marriott Plat
Posts: 4,163
Since anybody can Transfer their IB Avios to BA and redeem there, I suspect BA cannot be far behind. Although I do recall their promise to give advanced notice before increasing redemption Levels. Let's see if they stick to it, not like they did when adding change fees for Golds.
Maybe it's because they're about to be prohibited from charging fees on Partner redemptions when the Partners themselves don't charge them.
Maybe it's because they're about to be prohibited from charging fees on Partner redemptions when the Partners themselves don't charge them.
Aug 25, 2014, 6:06 am
#73
Join Date: Feb 2013
Location: UK
Programs: I go wherever the content takes me.
Posts: 5,698
One of the principal selling points of BA is the frequent flyer programme - the other being great connections.
There is already wild Iberia/BA discrepancy with hotel partner Avios collection. It's almost always better to collect hotel points - sometimes massively so - using Iberia and combine the Avios into BA later. My point; discrepancies between BA and IB reward tables are not new.
Aug 25, 2014, 6:26 am
#74
Moderator: British Airways Executive Club
Join Date: Jan 2009
Programs: Battleaxe Alliance
Posts: 22,127
Their point was that although saying the revenue from miles is tiny in comparison to the revenue from flights is correct, it's the profit you need to compare not revenue. The profit margin on flights is tiny whereas it's huge on selling miles - so the difference between them with regards to profit will be much smaller.
).