When does it make sense to purchase British Airways Avios with a 30% bonus?

Jan 9, 2020

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As part of the current British Airways sale, the airline is offering a 30% bonus on buying Avios until 30 January. The bonus is also applicable when gifting Avios, meaning you can purchase them to be deposited into a friend or family member’s account. It’s worth noting that this is 20% less than the offer which was available in November.

You can purchase up to 200,000 Avios annually. If you maximise that option with this 30% bonus, you’ll get a total of 260,000 Avios for £3,215 — a price of 1.2p per Avios.

TPG U.K. values Avios at 1.1p each, so this is actually means you would be buying them at a price which is slightly higher than we believe they are worth. It should also be noted that the price per Avios increases for smaller purchases.

We don’t recommend buying Avios speculatively (as in buying them now with no immediate plans to use them), especially at this price and also because their value can change quickly.

It isn’t always easy to find availability when redeeming Avios for flights, so make sure you spend some time researching your options before you go ahead and make the purchase.

But, if you can redeem the Avios as soon as you earn them, what sort of value is possible?

Most TPG U.K. readers will likely have some Avios in their account already. So let’s say you already have minimum 32,000 Avios in your account, which isn’t an impossible amount to collect in a short space of time. Buying an extra 104,000 Avios at £1,295 would take you up to 136,000 in total, which is enough for a return trip to Dubai in British Airways first class.

The actual cost of a return first class ticket with British Airways to Dubai prices out at just over £3,000.

To calculate the saving, let’s do the maths:

£352 — Value of Avios already earned (as per TPG’s current valuations)
£1,295 — Cost of 104,000 Avios from 30% bonus deal
£547 — Additional tax
£2,194 — Total cost of ticket

While our current valuations would put these Avios at a lower value than they should be, you would still save over £800 on the cost of a return first class ticket to Dubai — although remember that you will no longer earn Avios on your ticket.

So, is it worth it? It’s up to you to decide. Where there is money to be saved, there is definitely still value to be gained by buying Avios with the bonus offer deals — even at lower value. Though that’s not the case for everyone.

Featured photo by Ethan Steinberg / The Points Guy.

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