Avios points are best known for booking flights but their value extends to other perks.

Earned through airlines like British Airways and everyday spending with partner retailers and credit cards, Avios has become a versatile reward system.

From hotel stays and car rentals to shopping and leisure activities, these points can be used in ways that cater to all lifestyles, not just to frequent flyers.

What are Avios points?

Avios points are the reward system of several major airlines and travel partners. They were launched in 2011 as a direct response to the merger of British Airways and Iberia, which created the International Consolidated Airlines Group (IAG.L).

Avios is a unified points system that works across all IAG carriers.

In addition to flight redemptions, Avios partners with various non-airline partners such as hotels, car rental services, and online retailers allowing customers to earn points through everyday purchases.

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Avios points have evolved significantly over the past decade. The merger of British Airways and Iberia to create IAG created a unified loyalty programme that could cater to a broader customer base across different regions.

Before the merger, both British Airways and Iberia had separate frequent flyer programmes — the Executive Club and Iberia Plus. Though both were well-regarded, they lacked integration, making it difficult for passengers to earn and spend points across both airlines.

To solve this, IAG introduced Avios, which worked across all IAG carriers, including later additions like Aer Lingus and Vueling.

During the COVID pandemic, as the global travel industry faced unprecedented disruptions, Avios points increased in popularity as BA introduced options to use Avios for everyday items like wine, electronics and groceries.

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This shift allowed travellers to extract value from their accumulated points without flying, keeping customer engagement with the Avios programme high despite the grounded travel industry.

As borders began reopening, the value of Avios points surged as travellers sought ways to fly while avoiding the high costs of post-pandemic airfare spikes.

The pandemic shifted the way consumers approached loyalty programmes, placing greater emphasis on flexibility and cash equivalents.

How can you get Avios points?

1. Airline travel

Perhaps the most familiar method, participating airlines award Avios for every mile flown, as well as for premium services and special promotions.

2. Credit card spending

Several credit cards including American Express and Barclays offer Avios as a reward for everyday spending.

These cards often provide opportunities to earn bonus points through sign-up offers and spending thresholds.

Credit cards that offer Avios points:

3. Retail partnerships

Avios points can also be earned through retail partnerships.

By linking your Avios account to your Uber (UBER) account, for example, you can collect Avios on eligible rides.

4. Earning ‘double points’

You can earn "double points" through collecting rewards from two separate loyalty programmes for the same transaction.

For example, when you make a British Airways booking with an American Express (AXP) card, you earn Avios points through BAs as part of their frequent flyer programme, while simultaneously earning Amex Membership Rewards points from the purchase.

These Amex points can later be converted into Avios, effectively increasing the total number of Avios points earned from the same transaction.

Redemption options

1. Retailers

Many major retailers including John Lewis & Partners, Argos, B&Q, and Marks & Spencer (MKS.L) accept Avios points, allowing you to spend your points on everyday purchases.

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Avios points can also be converted into Sainsbury’s gift cards, allowing you to spend them on groceries or other items.

The Avios Shopping Portal is a dedicated online platform where you can collect and spend your Avios points on products from a range of categories including electronics, fashion, home goods. Participating retailers including Boots, Debenhams and Currys (CURY.L).

2. Travel and leisure

Beyond flights, Avios points can be used for hotel stays, car rentals and leisure activities and such as fitness class passes, salsa lessons and yoga sessions. Activities Redemption offers a range of leisure activities that can be paid for with Avios.

Participating hotels include Hilton Hotels & Resorts (HLT), Marriott Hotels (MAR) and Radisson Hotels.

Understanding the value of Avios points in comparison to cash can help you gauge their worth.

3. Converting Avios to Nectar points

Avios can be converted to Nectar points, which can then be used for shopping at Sainsbury’s (SBRY.L), Argos, and other partners.

The conversion rate from Avios to Nectar points is typically one to one. This means that if you transfer 1,000 Avios, you would receive 1,000 Nectar points.

To do this, log into your Avios account and link your Avios account with your Nectar account.

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