British Airways switches to revenue-based accrual for Avios

British Airways passengers will earn Avios based on how much money they spend, not how far they fly, starting later this year. The carrier is the latest to switch to a revenue-based accrual method for its loyalty program.

This is a simpler and more transparent system offering more opportunities to collect Avios than ever before and rewarding loyalty based on customers’ cash spend. It’s a tried and tested model already used by a number of global airlines, including our sister airline Iberia.

– Ian Romanis, British Airways’ Director of Retail and Customer Relationship Management

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Members booking flights from 18 October 2023 will collect the following Avios depending on their Tier status:

• Blue members will receive 6 Avios per qualifying £1 spent
• Bronze members will receive 7 Avios per qualifying £1 spent
• Silver members will receive 8 Avios per qualifying £1 spent
• Gold members will receive 9 Avios per qualifying £1 spent

Qualifying purchases include the base fare and carrier-imposed charges. It also includes ancillary fees like advance seat assignments and baggage. Non-airline taxes and fees, such as airport charges and government taxes, do not collect Avios.

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While most transitions to a revenue-based earning scheme in the past brought outsized impact to passengers traveling on the cheapest fares, this change may avoid at least some of that pain. British Airways already significantly discounts the earning rates on lower fare classes.

A £335 K fare ticket from London to Copenhagen earns 305 Avios (50% of distance flown) under the old scheme. That same fare would earn 1,794 Avios under the new scheme. A passenger booking into the £92 O fare class would earn 153 Avios under the old scheme (25%) and 330 in the new program.

Longer haul routes booked into discount fares are where most of the imbalance will appear. A £460 return trip from London to Boston would earn 1,590 Avios, thanks to roughly 40% of the fare paid being taxes and fees. At the 25% earn rate that same fare would net 1,633 Avios.

For passengers with Executive Club status the equation changes more notably. Today the three tiers earn additional points at a 25%/50%/100% rate. Under the new program those drop to 17%, 33%, and 50%. Again, for most short-haul trips the transition still appear to be net positive. For longer haul in lower fare classes that is less likely.

There will undoubtedly be additional edge cases where the changes are dramatic. But the legacy policy limiting earning on cheaper fares limits the impact of this change for many travelers.