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Spend-based Avios earning coming to BAEC in 2023

Spend-based Avios earning coming to BAEC in 2023

Old Oct 31, 2022, 8:03 am
  #1  
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Spend-based Avios earning coming to BAEC in 2023

Iberia have announced they are changing how Iberia Plus members earn Avios when flying from the end of November, they are moving from distance based to spend based earning, 5-8 Avios per euro spent (excluding taxes and carrier charges!), depending on Iberia Plus level. The press release says BA will follow in 2023.
Press release:
Iberia | Iberia Plus incorpora una nueva manera de acumular Avios
Ian Romanis, Head of Sales Management and Customer Relations at British Airways, added: "We congratulate our colleagues at Iberia on introducing this change and look forward to joining them in 2023. We will soon announce what this change will mean for our Executive Club programme, which will offer even more opportunities for our members to earn Avios when they fly."
Some more Iberia details here: https://www.iberia.com/gb/iberiaplus/get-avios/
“Very shortly, the way you collect Avios on the tickets you buy will change. Instead of Avios being awarded for the miles flown, the method used until now, you will start collecting Avios for every eruo you spend,* according to your card level.”

CLÁSICA = 5 per €
PLATA = 6 per €
ORO = 7 per €
PLATINO, INFINITA & INFINITA PRIME = 8 per €

Last edited by revorgap; Oct 31, 2022 at 8:51 am Reason: Fix link
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Old Oct 31, 2022, 8:05 am
  #2  
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Some previous recent discussion on this issue here Avios earning spend-based rather than distance (IB rumour)
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Old Oct 31, 2022, 8:32 am
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The change in earning rates does not worry me too much and honestly makes sense.

The important bit in the press release, for me, is that the way of attaining status via Puntos Élite will not change.
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Old Oct 31, 2022, 8:40 am
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Any word on how this affects partner earnings?
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Old Oct 31, 2022, 8:54 am
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They now throw so many Avios around through Nectar, Amex, Barclays the eStote etc. that even as a Silver member flying is a fairly marginal part of how I earn Avios.
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Old Oct 31, 2022, 9:07 am
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It's currently possible to keep BAEC GGL for under £10K total spend (c. £7K in fares) - under the new revenue model that would earn 35,000 to 70,000 Avios (5 to 10 Avios per £). That would leave Amex 241 and upgrade vouchers difficult to use on long haul flights
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Old Oct 31, 2022, 9:09 am
  #7  
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Whilst “possible” I imagine most corporates (which BA traditionally care about) spent several times that on gaining and renewing GGL
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Old Oct 31, 2022, 9:10 am
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Frankly unless they move to the same model for TPs, I'm not likely to care...
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Old Oct 31, 2022, 9:15 am
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Rob at HfP has very nicely summarised my thoughts on this. Loyalty programs are as much about shifting spare seats & rooms or attracting true discretionary spend (leisure & SME’s) as luring the big bucks corporate money on negotiated deals.

I’d also add that a move to essentially a fixed earning rate surely opens up the possibility that corporate negotiated fares cease to earn Avios. If I, as chief bean counter at Money Bank PLC, know that on every ticket I buy BA are handing out a flat 2.5-4% rebate to my employees then why would I not ask for that to be top sliced from the fare?

Edit: is this also the big change that CWS reported was signed off by the board pre-Covid?
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Old Oct 31, 2022, 9:18 am
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All good things come to an end…
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Old Oct 31, 2022, 9:22 am
  #11  
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Originally Posted by salut0
All good things come to an end…
Tier points are a big driver of BA flights. Avios themselves? Less so. I don't see people doing mileage runs purely to earn Avios, given you might as well stick you money into buying multiple Economist subscriptions instead ....
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Old Oct 31, 2022, 9:24 am
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It's the taxes and fees element that will be potentially grim here. As a silver I earn about 3300-3600 Avios for a return trip to a standard European destination in CE (somewhere like OPO or ARN), which usually costs me somewhere in the £500 range. So assuming 7 Avios / £, I'd end up in a similar place. But taxes and fees can take up about half of that. I wouldn't be thrilled with a return of 1500 Avios for a CE return...
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Old Oct 31, 2022, 9:25 am
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Hmm.

Just plugged in one of my popular routes and even at today’s elevated prices it’s about 17% fewer avios.

I may be doing this wrong but a quick lhr-Syd return costing £9.5k in mid November in J and D works out as ~9% fewer (after removing BA’s £1k in carrier charges) .
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Old Oct 31, 2022, 9:36 am
  #14  
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Originally Posted by Raffles
Tier points are a big driver of BA flights. Avios themselves? Less so. I don't see people doing mileage runs purely to earn Avios, given you might as well stick you money into buying multiple Economist subscriptions instead ....
Agree 100% … says an old bloke with over 1m Avios in the HHA! Difficult/impossible to use them the way we wish to travel, and earned endlessly and daily from grocery/wine shopping here. Already dumped the Amex PP card that earned more unusable Avios!

BUT … please don’t mess with TPs. We like being Gold! 😎
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Old Oct 31, 2022, 9:40 am
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Originally Posted by ratechaser
Frankly unless they move to the same model for TPs, I'm not likely to care...
Basically this. Avios is only worthwhile for upgrades, and they're like hens' teeth.
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