Using Cash + Avios -- How much do you value Avios points?

Discussion in 'British Airways | Executive Club' started by daemon14, Dec 12, 2011.

  1. daemon14

    daemon14 Gold Member

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    Since the cheapest option is $450, I am using 10K Avios to book a one-way Y ticket. This ticket has the option of Cash+Avios. The options, before similar taxes, include:

    $450 (earns 1527 RDMs ... not considering EQMs as it's not currently a program in which I'm chasing elite status)
    10K Avios (redemption value = 3.9cpm, taking into account lost RDMs)

    9K Avios + $15 (buying at 1.5cpm)
    8K Avios + $30 (buying at 1.5cpm)
    7K Avios + $40 (buying at 1.33 cpm)
    6K Avios + $55 (buying at 1.375 cpm)
    5K Avios + $65 (buying at 1.3 cpm -- best buying value).

    I'm considering using the Cash + Avios option, and in doing so, would easily go for the last one since it gives the best value. Would others here do the same, i.e., buy BA miles at 1.3cpm? Or put similarly, how do value BA miles?

    I know that the options give better values because I'm booking a Y award. F and J aren't available on this route/day, but I've seen that with those premium redemptions, they can easily reach 2+ cpm when using cash + Avios.

    A couple of things I'm considering are where I get the majority of my BA miles -- UR and MR points. Chase UR points are monetarily worth 1.25cpm and transfer 1:1 to BA. Amex MR points also are worth at least 1cpm, and are more when transfer bonuses are in place (right now, with the BA transfer bonus, they are worth 30% more). It's tough for me to put a specific number on how I value BA miles, but I can easily put monetary value on UR and MR points, and wouldn't transfer these points to BA unless they were worth much more than the points in their native form.

    (Another interesting thing that I noted while looking this up is that BA sells Avios for 2.85cpm when you buy 24000 Avios, which easily plays into the value of redeeming for expensive short flights.)
  2. TheTravelAbstract

    TheTravelAbstract Silver Member

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    I appreciate the generally practiced standard of stamping a fixed value to miles/points for accounting purposes.

    However when it comes to redemption I usually throw those values out the window. I always evaluate each flight on its own merit.

    My Mileage Redemption Plan for BA Avios points has not changed from when they were BA Miles. I mostly stick to one-way flights to EZE and I am planning on some intra-Argentina, inter-SA flights.

    For my JFK-EZE on AA metal flights I find BA Avios are a great resource. This is a route that I do fly on short notice and I don't always have a outbound date ready when booking my inbound.

    Nonstop Round-trip flights consistently cost $1200+ and most of the time well north of that.

    But with Avios I can book a one-way ticket for 12,500 points + $160 cash (lowest point total in the points+cash column). So this would be buying 12,500 points for 1.28 cpm, which I feel comfortable with because that one-way award gets me a conservative 3.5 cpm, ($600 OW -($160) /12,500 Avios).

    BA Avios are not good for F class redemption from what I have seen; 1.9 cpm buy back. AA miles are better for AA metal on these awards for sure.

    In short I would always try to keep my points+cash "buying miles" cpm below my redemption cpm values.

    But if that is too inconsistent because I don't fly the same route often or for whatever reason you may have; I try not to buy them for more than 1 cpm.

    I agree with you on valuing UR and MR higher than BA Avios, just for diversity alone.
    Toula likes this.

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