BA trialling new Avios pricing – NO taxes but more Avios
Apr 18, 2019, 1:01 am
#1
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BA trialling new Avios pricing – NO taxes but more Avios
Did not see this posted already (apologies if I missed it) but interesting article: british-airways-trialling-new-avios-pricing-no-taxes/
In short, paying reward flights / redemptions with more Avios to reduce the amount on taxes. Interesting as could be the first step towards ‘"Dynamic" pricing in that BA scraps the reward charts and just charges a random amount of Avios based on prevailing cash prices.
Hopefully will not lead to this as I like the reward charts and know what to pay to go where but could be a sign of things to come.
In short, paying reward flights / redemptions with more Avios to reduce the amount on taxes. Interesting as could be the first step towards ‘"Dynamic" pricing in that BA scraps the reward charts and just charges a random amount of Avios based on prevailing cash prices.
Hopefully will not lead to this as I like the reward charts and know what to pay to go where but could be a sign of things to come.
Last edited by ens100; Apr 18, 2019 at 1:27 am
Apr 18, 2019, 1:26 am
#2
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That's an interesting change. I'm not sure they'll scrap the reward charts though as I'd expect that there are a lot of people that use that as a target, i.e. I want to fly to XXX, I need YYY more Avios to make that happen.
Apr 18, 2019, 2:56 am
#4
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This is good news IMO -- it's an option for Avios-rich travelers that other travelers can choose to ignore.
I don't really see the connection between this and dynamic redemption pricing. This looks more like an extension of "part pay with Avios" to the tax/fee element of a redemption. The advantages/disadvantages of dynamic pricing have been (and will be) debated ad nauseum, but this isn't it. No need to get excited just yet!
I don't really see the connection between this and dynamic redemption pricing. This looks more like an extension of "part pay with Avios" to the tax/fee element of a redemption. The advantages/disadvantages of dynamic pricing have been (and will be) debated ad nauseum, but this isn't it. No need to get excited just yet!
Apr 18, 2019, 3:05 am
#5
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Isn't the big issue carrier imposed fees such as fuel surcharges and not so much actual taxes paid to the government?
Apr 18, 2019, 4:37 am
#6
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Apr 18, 2019, 5:16 am
#7
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It's not reducing anything. You can just use avios to pay for them.
VS has allowed people to do this for a couple of years if you use the 'miles plus money' option. Something like £20 for 3k miles.
VS has allowed people to do this for a couple of years if you use the 'miles plus money' option. Something like £20 for 3k miles.
Apr 18, 2019, 7:08 am
#8
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I think that when a lot of people outside FT look at reward flights and find the taxes equivalent, or more, than a cash fare on the same route they equate their Avios as having no value. Which makes them less likely to be loyal to BA/IAG/oneWorld, defeating the purpose.
I think regular flyers, maybe with the Blue BA Amex would be quite happy with this option. As would less frequent flyers with small, or orphan, Avios balances.
I think regular flyers, maybe with the Blue BA Amex would be quite happy with this option. As would less frequent flyers with small, or orphan, Avios balances.
Apr 18, 2019, 7:30 am
#9
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Actually, the whole point of RFS is so that people actually spend Avios on short-haul. Otherwise the taxes and "surcharges" overwhelm the value proposition and you're better off paying cash. (i.e. Miles & More)
Apr 18, 2019, 7:53 am
#10
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I assume this is just the surcharges, rather than taxes proper...? Regardless, it will be at a rubbish rate of exchange. Not bad to have the option for the Avios rich - probably not a good bet for those who are eking out the Avios to that one dream trip.
A rewriting of the award chart with the elimination of carrier surcharges might be more consumer friendly - though we'd risk losing the regular visits from our American friends whinging about the "BA fee" [while they miss the fact that that is what keeps availability reasonable on BA when they can't find anything on AA]...
A rewriting of the award chart with the elimination of carrier surcharges might be more consumer friendly - though we'd risk losing the regular visits from our American friends whinging about the "BA fee" [while they miss the fact that that is what keeps availability reasonable on BA when they can't find anything on AA]...
Apr 18, 2019, 8:55 am
#13
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It's not helpful to refer to carrier surcharges as taxes. They not the same. While both may currently involve a cash outlay, they are simply a form of miles + cash, thinly disguised. Taxes are, of course, imposed by various taxing authorities and are not a competetive issue as they are by and large the same across all carriers.
Apr 18, 2019, 12:30 pm
#15
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No more fuel surcharges.
Plain and simple "carrier fees." How BA works out the pricing is really no different than how it charges for tickets. In fact, if BA wants to push people to pay fees in avios, it could lower the avios price. Or the reverse and raise that price.
Plain and simple "carrier fees." How BA works out the pricing is really no different than how it charges for tickets. In fact, if BA wants to push people to pay fees in avios, it could lower the avios price. Or the reverse and raise that price.