How to Use British Airways Miles: Post 9, Leveraging Miles and Cash Redemptions
Update: Some offers mentioned below are no longer available. View the current offers here.
This is the ninth installment of my series on maximizing British Airways miles. Since so many of you got in on the super-lucrative 100,000 mile BA Visa sign-up bonus (see details of the current 100K offer), it would be beneficial to check out: General tips, Post 1 – Booking BA Awards, Post 2 – Booking Partner Awards, Post 3 – Oneworld Alliance, Post 4 – Taxes and Fees, Post 5 – Household Accounts, Post 6 – Companion Ticket, Post 7 – Using ExpertFlyer for Partner Award Availability, Post 8 - The Art of the Stopover, Post 9 - Leveraging Miles and Cash Redemptions, and Post 10 - Using Qantas.com to Find Oneworld Award Availability. Also, be sure to look at my post on the credit card deal itself and the lengthy Q&A in the comments section.
One of the less advertised aspects of the British Airways Executive Club is the ability to use a mixture of miles and cash on award redemptions. While I normally ignore most attempts to "sell" me miles directly from the airline, this one can make sense for you depending on how you value a mile and what you redeem for. Without a promotion most airlines sell miles for about 3 cents each.
Let's take a look at this option with four New York - Rome itineraries on British Airways in coach, premium economy, business and first.
Economy options are:
60,000 miles and $525 or
48,000 miles $620 (pay $95 more to save 12,000 miles, .75 cent a mile) or
42,000 and $665 or (pay $140 more to save 28,000 miles, .75 cent a mile) or
39,000 and $690 (pay $165 more to save 21,000 miles, .78 cent a mile) or
36,000 and $715 (pay $190 more to save 24,000 miles, .79 cent a mile) or
30,000 and $760 (pay $235 more to save 30,000 miles, .78 cent a mile)
Summary: I'd buy BA miles at .78 cents all-day-long. Using cash and points is a fantastic deal.
Premium Economy options are:
90,000 miles and $525 or
72,000 miles $665 (pay $145 more to save 18,000 miles, .8 cent a mile) or
63,000 and $735 or (pay $210 more to save 27,000 miles, .78 cent a mile) or
58,500 and $770 (pay $245 more to save 31,500 miles, .78 cent a mile) or
54,000 and $805 (pay $280 more to save 36,000 miles, .79 cent a mile) or
45,000 and $880 (pay $355 more to save 45,000 miles, .78 cent a mile)
Summary: I'd buy BA miles at .78 cents all-day-long. Using cash and points is a fantastic deal.
Business class options are:
120,000 miles and $665 or
108,000 miles $935 (pay $270 more to save 12,000 miles, 2.3 cents a mile) or
90,000 and $1,340 or (pay $675 more to save 30,000 miles, 2.3 cents a mile)
Summary: Not such a hot deal. My guess is that BA knows they can sell business class (its often the hardest award to find), so they don't need to incentivize people more to redeem for it.
First class options are:
180,000 miles and $665 or
162,000 miles $935 (pay $270 more to save 18,000 miles, 1.5 cents a mile) or
135,000 and $1,340 or (pay $675 more to save 45,000 miles, 1.5 cents a mile)
Summary: Not amazing, but not terrible either. If you have the cash and redeem for first class, this is a no-brainer.
The great thing about cash and miles is that they work on partner awards as well (even the ones without fuel surcharges).
Domestic American Airlines Economy options are:
25,000 miles and $5 or
20,000 miles $70 (pay $65 more to save 5,000 miles, 1.3 cent a mile) or
17,500 and $100 or (pay $95 more to save 7,500 miles, 1.3 cent a mile) or
16,300 and $120 (pay $115 more to save 8,700 miles, 1.3 cent a mile) or
15,000 and $135 (pay $130 more to save 10,000 miles, 1.3 cent a mile) or
12,500 and $165 (pay $160 more to save 12,500 miles, 1.3 cent a mile)
Summary: A decent deal since taxes/fees are low to begin with.
AA South America First Class options are::
120,000 miles and $61 or
108,000 miles $356 (pay $295 more to save 18,000 miles, 1.6 cents a mile) or
90,000 and $791 or (pay $730 more to save 30,000 miles, 2.4 cents a mile)
However, some partners don't have the cash and points option, like this Cathay Pacific Chicago to Hong Kong in business class:
The point is that you shouldn't automatically dismiss the option to mix cash and miles on awards using BA miles. If anything, it allows the flexibility to achieve an award that you wouldn't have been able to achieve normally, so I personally like this option a lot. Feel free to share your thoughts on the valuations and whether you think this option is a good deal.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.