Taxes are just crazy....?!?
#1
Original Poster
Join Date: Jul 2011
Location: York, UK
Programs: BAEC GGL, Hilton Diamond, Marriott GOLD, Accor Club Gold
Posts: 709
Taxes are just crazy....?!?
I've been trying to plan out some family trips in the summer, in the hope of vaccine-instigated resumption of some kind of normality. I was astonished to find that the taxes etc for an Avios redemption between Chicago and London round-trip were about $1800..... but that I could buy a round-trip in First (no upgrades used - regular, albeit low, fares on the website) for less than $3k. Just feels crazy.
#2
FlyerTalk Evangelist
Join Date: Apr 2001
Location: MEL CHC
Posts: 21,016
I've been trying to plan out some family trips in the summer, in the hope of vaccine-instigated resumption of some kind of normality. I was astonished to find that the taxes etc for an Avios redemption between Chicago and London round-trip were about $1800..... but that I could buy a round-trip in First (no upgrades used - regular, albeit low, fares on the website) for less than $3k. Just feels crazy.
Departures from most UK airports have the APD. First class is at top rate. The same cost is in revenue tickets
https://en.wikipedia.org/wiki/Air_Passenger_Duty
https://www.gov.uk/guidance/rates-an...passenger-duty
#3
Join Date: Feb 2009
Location: YYC
Programs: BA bronze, Aeroplan peon
Posts: 4,746
It's not real taxes, the BA "carrier surcharge", aka additional profit that BA adds for North American departures is very high. It's one of the reasons that I value Avios at almost zero, as the cost to use them is very high, plus the restrictions in finding dates and flights are significant.
#4
Join Date: Dec 2016
Posts: 398
I've been trying to plan out some family trips in the summer, in the hope of vaccine-instigated resumption of some kind of normality. I was astonished to find that the taxes etc for an Avios redemption between Chicago and London round-trip were about $1800..... but that I could buy a round-trip in First (no upgrades used - regular, albeit low, fares on the website) for less than $3k. Just feels crazy.
It's not real taxes, the BA "carrier surcharge", aka additional profit that BA adds for North American departures is very high. It's one of the reasons that I value Avios at almost zero, as the cost to use them is very high, plus the restrictions in finding dates and flights are significant.
But I agree, if you are just looking at a round trip long haul flight ex LON avios tend to be terrible.
In general there seem to be much better programs out there for redemptions (AA and AS seem to be popular).
Last edited by Freddorick; Dec 5, 2020 at 8:33 pm
#5
Join Date: Feb 2009
Location: YYC
Programs: BA bronze, Aeroplan peon
Posts: 4,746
The surcharges are substantially higher to do an ex Canada return to LHR than an ex LHR to Canada. For those not living in the UK Avios are not a great value. My chances of doing an inter-Europe trip without a trans-Atlantic portion are vanishingly small. I appreciate there may be some good values out there, but ex- North America to Europe is not one of them.
#6
Join Date: Dec 2016
Posts: 398
The surcharges are substantially higher to do an ex Canada return to LHR than an ex LHR to Canada. For those not living in the UK Avios are not a great value. My chances of doing an inter-Europe trip without a trans-Atlantic portion are vanishingly small. I appreciate there may be some good values out there, but ex- North America to Europe is not one of them.
#7
Join Date: Feb 2009
Location: YYC
Programs: BA bronze, Aeroplan peon
Posts: 4,746
The last time I was able to find an Avios CW seat (YYC-LHR return) on dates I wanted to travel was in 2015, and then the fees were approx $1200 (about £750 then).
#8
Join Date: Nov 2015
Location: London
Programs: BA Gold
Posts: 1,683
Never really considered the accuracy of this, but many comment the surcharges are so high because USA credit card offers are so generous with Avios bonuses. Regardless those Avios are bought from BA generating revenue, and I suspect like any price ‘carrier surcharges’ are high because they can be.
As ever you really need to compare like with like, and a discounted non-refundable ticket compared to a flex Avios redemption which can cheaply be cancelled is not like with like.
There is great value to be found in using Avios, but I believe seldom in using them ex-USA to London. Maybe the time to question the value of something is before you start collecting them, when I assume there would be other alternatives, crediting to other programmes or using cash back credit cards.
As ever you really need to compare like with like, and a discounted non-refundable ticket compared to a flex Avios redemption which can cheaply be cancelled is not like with like.
There is great value to be found in using Avios, but I believe seldom in using them ex-USA to London. Maybe the time to question the value of something is before you start collecting them, when I assume there would be other alternatives, crediting to other programmes or using cash back credit cards.
#10
Join Date: Dec 2014
Location: Fort Lauderdale
Posts: 377
I agree. Using my 2 for 1 voucher a round trip from MIA to LHR is $1800 pp in taxes. Right now I could buy club world round trip for $2400. Spending $30000 to get the voucher and 95 dollars for the annual fee does not seem worth it. The advantage is you can cancel and get it all back except for $55. Also flights around Europe using Avios are quite good. I am rethinking the Chase BA card for next year.
#11
Fontaine d'honneur du Flyertalk
Join Date: Jul 2001
Location: Morbihan, France
Programs: Reine des Muccis de Pucci; Foreign Elitist (according to others)
Posts: 19,174
I've been trying to plan out some family trips in the summer, in the hope of vaccine-instigated resumption of some kind of normality. I was astonished to find that the taxes etc for an Avios redemption between Chicago and London round-trip were about $1800..... but that I could buy a round-trip in First (no upgrades used - regular, albeit low, fares on the website) for less than $3k. Just feels crazy.
#13
Join Date: Feb 2017
Location: London
Programs: BAEC Gold, Marriott LT Platinum
Posts: 2,333
We booked a London to Palma/ Majorca this late summer with an expiring 2-4-1 in Club Europe and it was 10k points and I believe £96 in surcharges. Ticket price would have been about £640 otherwise.
So as others said still good value intra-Europe and I guess the whole thing is mostly designed for UK/ European citizens. I still have 30k AA points though (solely delay compensations) which I hope to redeem next summer so I will have an opinion about the US system by then
So as others said still good value intra-Europe and I guess the whole thing is mostly designed for UK/ European citizens. I still have 30k AA points though (solely delay compensations) which I hope to redeem next summer so I will have an opinion about the US system by then
#15
Join Date: Oct 2019
Location: Mexico City, MX
Programs: No airline/hotel status use, Chase UR, Amex MR, CapOne etc
Posts: 266
Never really considered the accuracy of this, but many comment the surcharges are so high because USA credit card offers are so generous with Avios bonuses. Regardless those Avios are bought from BA generating revenue, and I suspect like any price ‘carrier surcharges’ are high because they can be.
As ever you really need to compare like with like, and a discounted non-refundable ticket compared to a flex Avios redemption which can cheaply be cancelled is not like with like.
There is great value to be found in using Avios, but I believe seldom in using them ex-USA to London. Maybe the time to question the value of something is before you start collecting them, when I assume there would be other alternatives, crediting to other programmes or using cash back credit cards.
As ever you really need to compare like with like, and a discounted non-refundable ticket compared to a flex Avios redemption which can cheaply be cancelled is not like with like.
There is great value to be found in using Avios, but I believe seldom in using them ex-USA to London. Maybe the time to question the value of something is before you start collecting them, when I assume there would be other alternatives, crediting to other programmes or using cash back credit cards.
Try flying on a partner carrier, AA redemptions using avios have much lower taxes. Also avoid flying out/to of London you always get nailed with high taxes/surcharges, and thats true for most point redemptions, not just avios.
Also don't forget if you book a british airways flight in cash you can wipe off some of the cost in cash at 1US cent per avios, which at this point is not a halfway bad way of getting rid of some avios.
Generally speaking though, I agree Avios are really hard to redeem for good value, especially too and from europe. If you aren't going for status perhaps crediting all your one world flights to American Airlines which still has some really good sweet spots. LATAM leaving one world took a hit to avios as well, for those of us living in the americas. But anyways, this topic has been covered ad infinitum on 100+ other threads on this site.
Last edited by PointsPanda; Dec 6, 2020 at 10:51 am