What is an Avios Point Worth? A Comprehensive Guide

Just how much is an Avios point actually worth?

Ever wondered, “What is an Avios point worth?” The answer is both simple and complex, and in this article I break down how to value Avios points….and why you probably shouldn’t value them at all.

What are Avios points?

Avios points are the frequent flyer currency of a group of airlines, predominantly British Airways, Qatar, Finnair, Iberia and Aer Lingus. All of those airlines belong to the oneworld alliance, and most are interlinked. IAG (International Airlines Group) owns BA, Iberia and Aer Lingus. Qatar owns 25.2% of IAG.

A short history of Avios points

Avios launched in 2011, and it replaced both BA and Iberia’s frequent flyer points, as well as the Air Miles scheme in the UK.

The rebranding of Air Miles to Avios brought about a number of changes. Whilst it was possible to earn Air Miles using some of the methods that you can us now (it had an equivalent to the Avios Shopping website) the new look Avios scheme is much better fit for what consumers want.

There are now multiple credit cards from different providers that will give you Avios points every time you spend, on top of any initial or ongoing bonuses. Consumers and businesses can earn points via cards from American Express, Barclays and Capital On Tap. You can also earn points with Revolut.

What is an Avios point worth?

Most people put the value of an Avios point at 1p per point.

When valuing points people will keep a record of flights they have taken, and what those flights should have cost them if they paid in cash. This approach is flawed for two reasons. Firstly the prices of flights fluctuate significantly, meaning that you are valuing the points at that moment in time. If you had waited a week, the flight could have been more expensive, or cheaper.

The second reason that the valuation approach doesn’t work is that it assumes that you have the option of either paying for a flight with points or with cash.

A high number of points collectors would not pay £8,000 for a First Class flight with British Airways or even a £3k Business Class flight with Qatar. Therefore, the value of the point is much greater, as you’re getting something (A first-class seat) that you wouldn’t normally have bought.

To give some context to this, we used to pay for Business Class flights as long as they were less than £1,200. This usually meant waiting for sales and connecting via Dublin. Now we’ll fly in Business Class using Avios, often on flights where it would cost £2k – £3k, a price we never would have paid.

Why you shouldn’t value your Avios points

For most points collectors, when booking a flight using Avios-alonge, valuing your Avios points is a waste of time. It’s unlikely you’ll find an accurate price per point, and the whole purpose of collecting Avios is to have amazing experiences.

I flew in The Residence last year with Etihad using points. That experience was priceless. I haven’t considered the value of the points it cost us, we just had an amazing flight in an incredible room on a plane.

Why you should value your Avios points

There is one instance where you should consider the value of your points when flying, and that’s when you have more than one option to pay, and one of those options is cash.

If you’re looking to book a flight and you have the cash to pay for the seat, or the points, then determining the value of the points allows you to make a direct comparisons.The same goes for if you are going to use Avios points to upgrade a flight.

If you’re going to use your Avios points on something other than flights, then it is absolutely worth looking at the value. You might want to use points to pay for a hotel room, via Avios Hotels. You probably shouldn’t, as it’s a poor use of points, but by calculating the value of your points you can determine that.

You can also swap Membership Reward points for things of value, such as gift vouchers. Again, this is a poor use of points, but you can see that by calculating the points needed at a 1p rate.

What if you want to get rid of some orphaned points?

It’s possible that you’ve got a small number of points in your BA/Qatar/Finnair/Iberia/Aer Lingus account and you just want to get rid of them. If that’s the case then there’s no need to value them, anything you can do with them is fine as you just want to get some value – any value – from them.

How much is an American Express Membership Reward point worth if you transfer it to Avios?

If you’ve earned the Membership Reward points through a GBP card, then you will be able to swap them to Avios at a rate of 1:1, which would value the MR points at 1p per point.

If you’ve got the points from a USD or EUR card, then you’ll have earned points at a rate of 1 cent per point however the transfer rate to Avios is 3:2. This means your Avios will be worth 0.8p. There are a small number of airline partners that have a 1:1 transfer rate, for example Singapore Airlines and Cathay Pacific. That means the points you have via a EUR/USD card will be worth 1.2p

A table of Avios valuations

(All of the rows below use the 1p per point valuation)

Making the Most of Your Avios – Top Tips and Tricks

Embarking on the quest to amass Avios points can feel akin to preparing for a grand adventure. To navigate this journey with the savvy of a seasoned explorer, consider these nuggets of wisdom. First off, keep those peepers peeled for those delightful bonus point opportunities – they’re your golden tickets to accelerating your Avios accumulation.

If you’re starting out on your points collection journey I’ve written about three things to do when you’re getting started with Avios.

Pairing your quest with a credit card can turn even the most mundane of purchases into a potential treasure trove of points, catapulting you towards your next redemption. Flexibility in your travel plans can unveil hidden gems, revealing those sweet spots where your points stretch further than you dared to dream.