Following the recent devaluation of Avios air miles, I thought it would be worth putting together a piece on what an Avios air mile or point is now worth.
My most recent use of Avios was to buy 3 one way tickets from Nice back to London in economy for my Summer trip to the lively Monte Carlo which could be purchased for €307=£220 for the 3 of us including taxes at the time that is most convenient to us.
When buying the fare I was offered £15 off for 2,250 points valuing the Avios at £0.67 or £75 off for 11,250 points also valuing the Avios at £0.67p.
I could alternatively spend 12,000 avios on this flight and £52 in taxes. £220-52 = £168 for 12,000 points works out at £0.014 per point or mile. So for me, an Avios mile used on European travel is worth £0.014.
I have been able to achieve over £0.05 valuation of Avios when booking Club Europe flights out of Heathrow Terminal 5 to Nice which gives you entrance to the Galleries Lounges North and South which I have reviewed. But now there is the paid for Aspire airport lounge in Heathrow terminal 5 departures that you can access with your Priority Pass, travelling Club Europe out of Heathrow is not quite as necessary from the point of view of benefits within departures. Of course, the Club Europe in flight experience is very much better so I do like to treat myself where possible (see my article debating the merits of Club Europe here).
As a rule of thumb, spending avios at a rate under £0.01 is not a great deal. Anything above £0.01 is a good dea, and if you can squeeze £0.014+ value our of your Avios then you should snap it up.
I collect Avios using my Lloyds Credit Card, my American Express Avios card and Tesco points. I actually find that I get an even better rate of return on my Starwood American Express Credit Card where I get a valuation of 0.03 worth of SPG points for every £1 I spend.
For High Street shopping it is worth considering applying for a Curve Card where you can free cashback for applying and an additional 3% cashback on shopping at places like M&S and Argos. You can combine this card with a MasterCard or Visa Credit card to double-up on points.