What is a British Airways On Business Point worth?
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. For an explanation of our Advertising Policy, visit this page.
This story has been paid for by American Express, but the opinions are those of the author and TPG. This is one way TPG continues to provide our readers with free news and advice about travel.
In conjunction with British Airways, American Express has launched an interesting credit card product called the British Airways American Express Accelerating Business Card. The card allows businesses that pay for flights with British Airways, American Airlines and Iberia to earn On Business Points as well as Avios. But what exactly is one On Business Point worth?
What are On Business Points worth?
The good news is that for just about all uses, On Business Points are worth significantly more than Avios.
TPG UK currently values Avios at 1.1p each. You can get all sorts of value from your Avios depending on how you use them, but we feel a good average is at the 1.1p mark, and we would recommend trying to get (at least) this value from each Avios you redeem.
On Business Points similarly have different values depending on how you redeem them. A big difference is that with Avios you can usually get more value by redeeming for premium cabin flights rather than economy. This is because it may cost three times the number of Avios for a business-class redemption than an economy redemption, while the cash price of a business-class ticket may be five or six times more expensive than an economy ticket on the same plane.
On Business Points are the opposite. The programme requires very few points for economy redemption but a comparably huge number for premium cabin redemptions. Because of that, you are likely to get better value from economy than business or first-class redemptions. For cabin upgrades, the numbers are a little different.
Here is an idea of how many Avios or On Business Points you would need for a redemption to some of the most popular British Airways destinations, one-way from London, off-peak:
|Destination||Economy||Premium Economy||Business Class||First Class|
Terms, taxes, fees and carrier charges apply.
And here is what you would need for a cabin upgrade to the same destinations, one-way from London, off-peak:
|Destination||Economy to Business||Business to First|
|Avios||On Business||Avios||On Business|
TPG UK’s valuations
As a rough guide, 1 On Business Point would be worth approximately 4 Avios when used for economy-class redemptions, 3 Avios for premium economy redemptions and, on average, 2 Avios for a business or first-class redemption.
For upgrades, 1 On Business Point would be worth, on average, around 2-3 Avios for economy to business upgrades (noting this varies hugely depending on destination), and around 2.5-3 Avios for business class to first-class upgrades.
Taking an average, noting that just like Avios you can obtain more or less than this depending on the exact type of redemption, TPG UK values On Business Points at 3 Avios each, so 3.3p each. This includes the value that On Business members have slightly better redemption availability than British Airways Executive Club Members when searching for the same flights using Avios.
We will be covering the best and worst uses of On Business Points, but as a quick guide, you will receive more value for redemptions in economy and premium economy than business or first class, and more value for long-haul upgrades than short-haul.
The card currently comes with a welcome bonus of 2,200 On Business Points after spending £3,000 or more on purchases on the card within the first three months. Representative Example: APR 81.6% variable with an assumed credit limit of £1,200 and a purchase rate of 22.9% p.a. variable. There’s an annual fee of £210.
Featured photo by Liam Spencer/The Points Guy.