snuffi

Apologies, I am trying to work out what an Avios is worth. Me and the rest of the world. Am I thinking about this the right way? I am not overly mathematical, so it could be this is completely wrong.

For 3 adults/2 kids one-way to Budapest next August, it’s £780 in the O fare bucket. Fairly steep, and earns the HHA a mere 25TP and 2,736 avios (1x GCH, 3 x BCH, 1x zip)

Alternatively using RFS it’s £87.50 + 37,500 avios. That makes the avios worth 1.72p each (saves £693, but spends 37,500 avios + does not collect 2,736 avios that the cash ticket does – so my calc is 693/40,236 = 1.72p )
There is also a scale of cash options, the highest of which is £287.50 + 12,500 avios. Using the same calc as above, I get to a per pence use of avios as 3.23p, which seems really good. Ie, I’ve still saved £493 off the cash fare, but I've only used only 12,500 avios.

Is this how I should look at this? Or should I say that the additional £200 is saving me 25,000 avios? That comes out as 0.8p per avios, at which point I get very confused!

Please unbefuddle me!
S

nux

For the outright award in the first instance you are gaining 1.72p/avios value.

For the Avios&Money award in the second instance, you are effectively paying £200 to buy 25,000 avios, thus buying avios at 0.8p/avios. The remaining avios you are redeeming at 3.23p/avios.

The Avios&Money option provides much better value, unless you are avios rich and cash poor.

xenole

It's really a matter of how many Avios you have, how easily to earn them and how much you're willing to spend.

If you aren't really planning anything else with the Avios, then use them.

If you could easily gain them back through BA Amex etc. spends, then you're not losing a lot.

As you're travelling as a family, Avios usage is going to be higher overall than if you're solo like myself. I can easily blow 9000? Avios + £35 on a return flight with no great impact - easy to make back from numerous flights, shopping etc.

As for what an Avios is worth, it's subjective.
i.e.
CX F JFK-HKG for 150,000 Avios + £66 and the flight sells for around £11,000.
AA F LAX-JFK for 50k Avios + £3 and the flight sells for around £792 upwards.

The CX flight is far better value in my opinion.

Does the cash + Avios option earn Avios? I know if you pay cash and then use say 4500 Avios to knock £20 off the price, you earn Avios and TPs.

nux

Avios&Money is a redemption which the OP is looking at and thus does not earn avios/TPs. This is booked using the normal award search and shows up at the end.

Using avios to reduce the price is a revenue fare which earns avios/TPs. This is booked using the normal revenue fare search and shows up at the end.

snuffi

Typically using avios to reduce the cash fare gives a flat rate for avios which is not very good. In this example in the lowest fare bucket, the earning potential is so pitiful as to make this even more unattractive.

Sixth Freedom

That sounds like a good deal to me, and (to put it in perspective) comparable value to UUA from WT+ to CW on longhaul.

LHR<>PVG UUA is GBP 1k in the sale or GBP 2.5k in CW. 72k Avios secures the UUA and saves GBP 1.5k. Accordingly 36k Avios saves GBP 750, which is approximately equal to your saving.

snuffi

OK, so I am buying at 0.8p, and therefore immediately redeeming at 1.72p, so a value of 0.92p on 25,000. And then 3.23p on 12,500, for an average of 1.69p across the 37,500?


If that's the case then the first option is marginally better. Basically the confusion is that there are so many ways to do it, and I like to be quite scientific on the value side, but sadly without the skill to do so!!

EsherFlyer

The calcs in your OP reflect the way I look at it. I'm not sure I see merit in splitting the Avios to see how they vary.

Another factor I consider is keeping enough Avios to be able to do the same again. The fewer Avios you use per transaction the more transactions you can make. Devaluation may creep up on you eventually, but assuming a gradual change you can aim to do another RFS later in the year with what you've kept back. If you spend too many now you won't have that option.

headingwest

Am I right in thinking that if I made a revenue booking with a saving using Avios, the Avios would not be refunded in the event of me cancelling the booking? Seems pretty logical, but I just want to make sure.

It's a stand alone flight for 53 EUR, but I can bring it down to 35 EUR for a net loss of 1,325 Avios.

ScruttonStreet

Raffles is the real expert on things like this and hopefully will be along shortly but personally I value avios at 1p each.

So in your case I'd take the RFS.

headingwest

But a RFS would cost 7,500 Avios + 21 EUR. I think in this case a revenue booking is better as it earns Avios/TPs too.

headingwest

Just for future reference, does anybody know the answer my question in post 9?

KARFA

You are right in tha refundability of the avios follows from the refundability of teh fare in general. So non-refundable fare means no avios refund either.

http://www.britishairways.com/en-gb/...ditions-of-use

See the last section under point 10.

headingwest

Thanks KARFA ^