Maximizing British Airways Avios: The Avios and Cash Option
This is the next installment on my new Maximizing British Airways Avios series. Other posts include Master FAQ Post on British Airways 100,000 Mile Offer, Spotlight on Taxes and Fees, Distance-Based Awards, Travel Together Companion Ticket, Household Accounts, Using Avios to Upgrade Paid Tickets, Save Money on Fuel Surcharges by Transferring British Airways Avios to Iberia, Using Avios For Non-Flight Redemptions.
One of the less advertised aspects of the British Airways Executive Club is the ability to use a mixture of Avios and cash on award redemptions. While I normally ignore most attempts to sell me Avios directly from the airline since they're mostly at ludicrous prices between 2.85-5.3 cents per Avios, this one can make sense depending on how you value Avios and the amount of cash you are comfortable laying out for an award. The big thing to note is that the Cash and Avios option basically sells you Avios at varying rates based on the type of award you are booking.
Let's take a look at some economy, premium economy, business and First class Avios and Cash redemption options on both British Airways and partners. Note: Avios and Cash awards are not available on all partners (most notable excluding Cathay Pacific).
Example 1: American Airlines economy one-way award from Miami to Santiago, Chile.
Economy options are:
25,000 Avios and $23.70 or
22,500 Avios $58.70 (pay $35 more to save 2,500 Avios, which values them at 1.4 cents each) or
20,000 Avios and $88.70 or (pay $30 more to save 2,500 Avios, 1.2 cents each) or
17,500 Avios and $123.70 (pay $35 more to save 2,500 Avios, 1.4 cents each) or
15,000 and $153.70 (pay $30 more to save 2,500 Avios, 1.2 cents each) or
12,500 and $183.70 (pay $30 more to save 2,500 Avios, 1.2 cents each)
Summary: 1.2 cents per Avios is a pretty amazing deal, though it all depends on the type of tickets you purchase. In this example, the one-way economy fare cost $3,409 (this is an extreme example, but I'm sure there are people out there who pay through the roof for last minute tickets). In this case, spending the 12,500 Avios and cash co-pay would save you $3225.30, or 26 cents per Avios. Okay, I know this example is extreme, but you get the point that essentially buying Avios at 1.2 cents each can be a huge value.
Example 2: JFK to London roundtrip in Premium Economy (World Traveller Plus)
60,000 Avios and $763 or
54,000 Avios $843 (pay $80 more to save 6,000 Avios, 1.33 cents each) or
48,000 and $923 or (pay $160 more to save 12,000 Avios, 1.33 cents each) or
42,000 and $1,003 (pay $240 more to save 18,000 Avios, 1.33 cents each) or
36,000 and $1,073 (pay $310 more to save 24,000 Avios, 1.3 cents each) or
30,000 and $1,153 (pay $390 more to save 30,000 Avios, 1.3 cents each)
Summary: Again, 1.3 cents per Avios isn't bad, but it's not great either. However, if you're short on Avios, this is a good way to use the ones you do have and shell out a little extra cash on a slightly premium ticket.
Example 3: Business class roundtrip JFK to London
80,000 Avios and $1,103 or
72,000 Avios $1,313 (pay $310 more to save 8,000 Avios, 3.875 cents each) or
60,000 and $1,623 or (pay $520 more to save 20,000 Avios, 2.6 cents each) or
48,000 Avios and $1,923 (pay $820 more to save 32,000 Avios, 2.56 cents each) or
40,000 Avios and $2,133 (pay $1,030 more to save 40,000 Avios, 2.575 cents each)
Summary: Not such a hot deal. My guess is that BA knows they can sell business class (it's often the hardest award to find), so they don't need to incentivize people more to redeem for it.
Example 4: Royal Jordanian to Bangkok in business class - same rates as the British Airways itinerary - 2.6 cents per Avios for the highest option.
Example 5: Business class London to Athens is a much better deal and is priced like Premium Economy options
20,000 Avios and $26.00 or
18,000 Avios and $56.00 or (pay $30 more to save 2,000 Avios, 1.2 cents each) or
16,000 Avios and $81.00 (pay $25 more to save 2,000 Avios, 1.25 cents each) or
14,000 and $106.00 (pay $25 more to save 2,000 Avios, 1.25 cents each) or
12,000 and $131.00 (pay $25 more to save 2,000 Avios, 1.25 cents each) or
10,000 and $156.00 (pay $25 more to save 2,000 Avios, 1.2 cents each)
Example 6: First class JFK to London
120,000 Avios and $1,103 or
108,000 Avios $1,343 (pay $240 more to save 12,000 Avios, 2 cents each) or
90,000 and $1,683 or (pay $580 more to save 30,000 Avios, 1.93 cents each) or
72,000 Avios and $2,033 (pay $900 more to save 48,000 Avios, 1.875 cents each) or
60,000 Avios and $2,263 (pay $1,160 more to save 60,000 Avios, 1.93 cents each)
Summary: Not amazing, but not terrible either especially if you really value First class awards (since the tickets are usually exorbitantly priced - even to upgrade from business to first)
Unfortunately, you can't redeem Avios and cash for some itineraries on BA's airline partners so, for instance, you need all the Avios necessary for the full redemption amount on flights like American Airlines from Los Angeles to Honolulu. However, even the normal Avios price of this flight (25,000 roundtrip) is still cheaper than booking using AA miles.
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| 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. |
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You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
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Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits.Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
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 $6,000 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.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.