British Airways today announced that they will be devaluing the Avios award chart starting on May 30th for partner redemptions. What they didn’t provide is any details of what the devaluation looks like. “We’re devaluing your points,” they said. “But we won’t retroactively raise the prices on any bookings you have already made!”
Although the new chart isn’t available, it has been programmed into the British Airways computer system for booking agents. So, by asking the right questions, I was able to piece together what I believe to be the award chart for the short and mid-haul flights most commonly booked with Avios (the Avios chart generally isn’t a good deal for long haul flights, so I didn’t focus on these). What are the results? They’re not as bad as I expected, and are in line with the recent LifeMiles devaluation. It’s clear that British Airways is trying to remain competitive with LifeMiles, and it’s possible that their credit card partner Chase leaned on them to do so given the 30% bonus currently available for transfers to Avios.
What We Know
Hawaii West Coast sweet spot (mostly) remains intact. The price is going up by 500 miles which is manageable.
Mid-haul sweet spot goes away. These flights are going from 7,500 to 9,000 points which is painful however you slice it. This is going to give Delta an excuse to devalue, so I’m actually much more concerned about burning my SkyMiles than worrying too much about BA’s devaluation here.
British Airways isn’t moving to variable pricing. There is still an award chart, it has just been devalued.
Per-leg pricing isn’t changing. Every flight is priced individually so the price for connecting itineraries is sum of all of the flights. This is the same practice as currently
All partner flights will cost the same. It won’t be more expensive to redeem on Alaska or American versus Sri Lankan, S7 or Cathay Pacific.
Taxes and fees won’t change. They will remain exactly the same as they are now.
Pricing for business and first class is consistent. This will still be 2x and 4x the economy class price, respectively. In general, this isn’t a great deal (although there can be sweet spots such as on Cathay Pacific mid-haul business class) so Avios are best used for economy class redemptions.
Not Yet Clear
It seems possible that the 0-650 mile award chart is coming back for flights within North America, because short-haul flights are pricing out based on this mileage band.
It isn’t clear whether Iberia and Aer Lingus will also devalue their Avios programs. If they don’t devalue, and you can live with the restrictions of Iberia, this may be a better program to use in many cases.
0-650 miles: 6,000 Avios
651-1,150 miles: 9,000 Avios
1,151 miles-2,000 miles: 11,000 Avios
2,001 miles-3,000 miles: 13,000 Avios
Want help booking a flight with Avios or any other award program? At AwardCat, we’re expert at helping you get the most for your miles.
I have been catching up on my mail since returning from St. Helena and South Africa, and finally got around to opening the stuff that looks like junk mail. Of course, a lot of that stuff in there is actually important, and in the miles and points world, this is pretty explosive. It’s the first notice of an overt (rather than stealth) devaluation of a bank rewards program I have ever seen.
HSBC points are devaluing. Is the money in your account next?
Points in the HSBC Premier World MasterCard Rewards program spend like cash through a travel portal, similar to the US Bank or Bank of America rewards programs. Currently, for HSBC Premier members, the rate is 62 points per $1. However, as of April 2, 2018, the rate will increase to 80 points per $1. This is a significant devaluation, from about 1.6 cents per point in value down to 1.25 cents per point in value.
I think this is most significant because it is the first major bank program devaluation. Banks have been fairly hesitant to devalue their award programs, and I think for good reason. You don’t want to associate a bank’s brand with the idea that your assets in that bank will lose value. In fact, American Express has responded to airline award program devaluations by offering periodic transfer bonuses into airline programs. This has helped to maintain the value of Membership Rewards points.
However, HSBC crunched the numbers and must have decided that a money grab is worth the reputational risk. It’s an extremely aggressive move, because this impacts their Premier product–these accounts are for their highest value customers with over $100,000 on deposit. So, I think this is a shot over the bow. If HSBC is willing to devalue their points this much, and to do so for their highest value customers, I don’t think any bank award program is safe.
For my part, I’ll be asking my HSBC banker whether they also plan to devalue the cash in my account.
Frequent flier miles are a depreciating currency. Don’t hang onto them and never trust that they will maintain their value. The latest program to devalue is Avianca LifeMiles. You have until midnight (Colombia time) tomorrow to book under the old rates. Pay attention to the time zone so you don’t miss out!
The new award chart hasn’t been published (and won’t be until the devaluation has already happened) so it’s impossible to know precisely how much the program will be devalued. Accordingly, if you have Avianca LifeMiles, my recommendation is to redeem them now.
One of the most frustrating things about the LifeMiles program is that you can really only book what is offered online, and there are a lot of restrictions. It’s really best to use the program for simple point-to-point itineraries. You can book either one way or roundtrip itineraries. Unfortunately, the LifeMiles search engine is spectacularly stupid. A lot of itineraries fail to show up, even though they are available.
To search for flights, I recommend using the United search engine, which seems to work a lot better, to find an itinerary. Ideally, look for an itinerary involving only one airline. Once you find a workable itinerary on the United page (bearing in mind that only “United Saver” or “Partner” award space will be available when booking with LifeMiles), you can search for the same dates with LifeMiles. The LifeMiles search engine allows you to skip their “SmartSearch” option (which, in my opinion, is the opposite of smart) and select an individual airline. I have tested a few different itineraries and by using this method, have been able to make successful bookings that do not show up either with the “SmartSearch” or “StarAlliance” option.
Good luck, and burn LifeMiles now while you still can. At least Avianca gave advance notice of the devaluation this time. This doesn’t always happen.