There are often situations where it makes sense for consumers to buy points, and it’s also quite a lucrative business for airline loyalty programs. British Airways Executive Club and Iberia Plus often have promotions on buying Avios (the points currency of IAG airlines), though the pricing will soon be changing. This change is good news for some and bad news for others.
The cost to buy Avios is changing as of May 2023
As of May 1, 2023, British Airways Executive Club and Iberia Plus are adjusting the cost to purchase Avios. Before I share the exact details, there are a couple of important points to understand:
- The cost to purchase Avios isn’t linear, and the more Avios you buy, the lower the cost per point
- The cost to purchase Avios depends on where your account is registered, and pricing is vastly different depending on whether it’s registered in the United Kingdom, United States, or European Union
With that in mind, British Airways and Iberia have unveiled Avios pricing changes, and it’s good news for those in the United States, and bad news for those in the United Kingdom and European Union.
Below you can see the before and after pricing for purchasing Avios.
As you can see, the cost to purchase Avios is increasing significantly for those in the United Kingdom and European Union, while it’s decreasing significantly for those in the United States. To compare the before and after cost of purchasing 200,000 Avios:
- Accounts registered in the United Kingdom would currently pay £3,215, and will soon pay £3,539, representing a 10% increase
- Accounts registered in the European Union would currently pay €3,601, and will soon pay €4,245, representing an 18% increase
- Accounts registered in the United States would currently pay $5,523, and will soon pay $4,599, representing a 17% decrease
Just to further clarify, generally it’s not worth buying Avios without a bonus. However, we frequently see British Airways Executive Club and Iberia Plus sell Avios with a 50% bonus, and in those cases buying Avios could make a lot of sense, with the right use in mind.
My take on Avios pricing changes
British Airways Executive Club and Iberia Plus are essentially eliminating the massive pricing disparity that currently exists depending on where your account is registered.
Those in the United States have always been at a disadvantage when it comes to buying Avios. Let me be clear — that’s hardly worth complaining about, since we’re privileged with the best points earning opportunities in the world, and there are so many ways to earn Avios here.
At the same time, I think this change is probably pretty smart. I know that buying Avios has been incredibly popular among many in the United Kingdom, while I can’t imagine many people in the United States buy Avios.
I think this pricing changes will help the programs maximize profitability. I’m sure many in the United Kingdom will still see value with buying Avios, while I think with the new pricing, British Airways and Iberia might see an uptick in people buying Avios in the United States.
Bottom line
As of May 2023, British Airways Executive Club and Iberia Plus will be changing the cost to buy Avios. The cost to buy Avios will be increasing for those in the United Kingdom and European Union, while the cost will be decreasing for those in the United States.
It has always been unusual how British Airways and Iberia have had different pricing for buying Avios depending on where your account is registered, so these changes help address that. With these changes, I imagine British Airways and Iberia may see more people in the United States buying Avios.
What do you make of these adjustments to Avios pricing?
Membership is free and takes no more information than commenting as a guest. Earn status points for good contributions, and see fewer ads as your status grows.