Avios value calculation

veryintrigued

Right I've been trying to work this out for a couple of hours now but failing terribly.

I thought it would be just a case of solving a couple of simultaneous equations or looking at ratios but I've confused myself to distraction!

I'm trying to work out how much value I'm getting for Avios over the same trip.

Below are two options (I have five combinations in total) which equate to a trip.

Which is the best value for Avios?

24,000 Avios and £1

Or

20, 000 Avios and £15

If someone is kind enough to show me to confirm the calculation I'll do the remaining comparisons myself.

Am sure I would have been able to solve this many years ago and apologies for making this into a BBC Bitesize quiz!

koalakoala

Lots of info on Flyertalk.

If 24000 is all you have, you will have 4000 left which you can't do anything with really

veryintrigued

koalakoala said:

Lots of info on Flyertalk.

If 24000 is all you have, you will have 4000 left which you can't do anything with really

I've already looked on Flyertalk but cannot find anything specific to working this out. Have you seen a specific topic on this please?

I collect Avios all the time so the second para is a moot point.

phatbear

Another consideration is how much did it cost you to get those points, ie their actual cost?

Hfp usually go on the assumption that an avios point should have a value of 1p'ish so based on that......

20000 points is worth £200+£15 
24000 points is worth £240+£1

So based on that a flight would cost £26 more, based on 1p per mile, if you used 24000 points

veryintrigued

phatbear said:

Another consideration is how much did it cost you to get those points, ie their actual cost?

Hfp usually go on the assumption that an avios point should have a value of 1p'ish so based on that......

20000 points is worth £200+£15 
24000 points is worth £240+£1

So based on that a flight would cost £26 more, based on 1p per mile, if you used 24000 points

Thanks for the response.

No cost in accruing these (apart from time) eRewards, Tesco's fuel on old CC for company vehicle etc.

If I follow this logic the, further option of, 15,000 + £35 is the best value.

Thanks again.

phatbear

Yup as that would represent an outlay of £185, assuming 1p per mile. 

There are lots of variables of course for example the actual cost of the flight. I only ever use airmiles (ba/virgin) to turn left on planes as i often find i i can get cheaper flights by using cash if i want to turn right.

Doshwaster

A good place to start for Avios valuations; https://www.headforpoints.com/2020/01/10/what-is-an-avios-point-worth-4/
Also https://thepointsguy.co.uk/points-program/avios/ has a lot of good information

silvercar

An extra 4,000 Avios saves you £14. So each of those extra 4,000 Avios saves you 0.35p. Ie just over a third of a penny.

regular Avios users would say that They wouldn’t spend Avios unless they received at least 1p / Avios.

veryintrigued

Thanks for these further replies. 

I've rechecked the options and, using Silvercars criteria, all the extra Avios are 'worth' well less than 1p.

But I think we'll settle on the £35 option.

Again thanks for the replies.

Avios.       Money.
24k.           £1
20.5k.        £15
17k.           £25
15k.           £35
9k.             £95

steve1500

1p in the benchmark.