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Avios & Cash Redemptions

Avios & Cash Redemptions

UntitledTravelers who are planning to book some of the Avios awards should be aware of one very interesting aspect. The should know that when they do find a n award itinerary, the airline will price that itinerary out for them on a sliding scale of options and thy will get the full price in Avios including the taxes and a list of lower Avios sums with higher cash pays. All these will be great deals.

Let’s take a flight from Dallas to Cancun as an example. On American the travel itinerary will cost 459 USD. On British Airways it will cost 69 USD (yes, you are not mistaken) and 15 000 Avios, which is 2.6 cents per Avios. The same travel itinerary could cost 199 USD plus 5 000 Avios and buy back the Avios at 1.99 cents each.

Another example is the TPG recent award for a business class flight on Cathay Pacific from New York to Vancouver. The available awards that could be chosen include 13 000 Avios and 388.90 USD for the biggest Avios plus Cash co-pay or 25 000 Avios plus 23.90 USD for a full award.

In other words, if the owner of the Avio points wants to save around 12 000 Avios, he could do so by paying 365 USD and then he will get a rate of approximately 3 cents per one Avio point. Naturally, that is not a great price, but still let’s make another calculation – the traveler will pay 13 % of the face value of the ticket and will cover the other 87% with only 13 000 Avios points that have a value of 24.6 cents per piece.

Yes, the values of the Avios points can vary in case the holder of the credit card is willing to some cash money and save some of the Avio points for other redemption. Taking advantage of the possible cash co-pays is a great way to save money.

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