Tuesday, 6 March 2012

Tesco..Every Little Really Does Help !


Unless you have a gazillion friends, or fly a LOT, you are going to initially get a good lump of points by getting someone to refer you, get some more by doing some referrals yourself, and then your collecting ability is basically down to how much you spend on your cards. So you really need alternative ways of generating Avios.....

Tesco & BA have had a relationship for a number of years, with Tesco providing the option to convert tesco clubcard points/vouchers into Ba miles (err....avios, if i say BA miles in future, just assume I've forgotten that the new name for them is Avios).  The standard conversion rate is for every 250 points you transfer, you get 600 BA miles.

How to maximise this opportunity:-

First off, get yourself a Tesco clubcard account for collecting tesco points.

1) Shop at tescos. For a number of years, you got 2 points for every £1 you spent. Unfortunately this has reduced down to 1 point per £1. Still, if you are shopping there anyway, you might as well have them.

2) Watch out for offers.  Tesco and Tesco direct are separate in terms of providing offers, so for example you might see a special 1000 points for your first grocery offer from Tesco, or 1000 for your first order from tesco direct. A much used offer was one whereby if you bought certain ink cartridges you got 500 points.  People would buy loads of the cartridges, sell them for a slight loss on your favourite auction site, and end up with a lot of points, at very little cost.

3) Tesco bank/finance often have great offers.  300 points just for getting a car insurance quote is so easy, you should be locked up if you DON'T do it.  3000 points for a life insurance policy that starts from £5 a month. When I took this out, the general consensus was that if you took it for 3 months you'd get to keep the points, but now they have it in the T&C that if the policy is cancelled within 6 months they'll take back the points. But still, 3000 points for £30 is great value.

4) Mobile phone recycling.  tescomobilerecycle.com, takes mobile phones and in return gives you club card points, they have a list that shows you how many points you get for each type of phone. But unless you have a large gathering of semi-modern phones looking for a home, how does that help you ?  Well, your favourite auction site is your friend.  You need to take an hour or so, check the prices of phones on ebay versus how much tesco will give you to recycle them, remembering that every £2.50 in tesco points equals 600 Ba miles, and then bid/buy on ebay. The maximum allowed is 5 handsets per household per calendar year.

5) Shop at tesco direct, via a link on the BA estore.  This one takes a little explaining.  Ba has an estore on ba.com. if you go to shops via the estore and make a purchase, then ba will give you a certain number of ba miles per pound spent. For tesco direct this is 2 BA miles per pound.  BA track the purchase, and after a while (maybe a month of more) you'll get the avios put directly into your account.  Note that this is entirely separate from the Tesco points your get for the purchase. And to really maximise those earnings, pay with your Amex card and get more points.

what I've personally done so far.

1) got a car insurance quotation....300 points
2) Took out the life insurance 3000 points
3) first home delivery...1000
4) Recycled 5 phones (1 I owned, and 4 I bought@ £200)...18,000 points
5) got my partner to buy 5 phones and recycle @£220)....17,000 points into her clubcard account.
6) Bought an ipad2 from tesco direct via the BA estore..paid with Amex card.
    (Amex card got me 787 BA miles, BA estore got me 948 miles, tesco got me 1000 points.)

Note that when paying for the phones using paypal, I registered my Amex card with paypal for payment, so buying the phones got me some points too.

The nice thing about all of the above, was that for a few months, BA/Tesco were running a promotion which meant instead of getting 600 miles for every £2.50 worth of clubcard voucher you transferred, you got 1000 miles. A quick tally of the above would show you I quickly had around 2400 BA miles, and £400 of clubcard points, which if converted during the promotion would realise me 160,000 BA miles, for a total cost of £440 (I'm ignoring the cost of the ipad2, as I genuinely wanted one).

To give you an indication of how valuable these miles can be, a 1st class return ticket, Heathrow to Los Angeles can be had for 150,000 BA miles. I've just priced that flight for August 2012, and it costs £7741 plus £560 in taxes. For me, it would cost me the £440 plus the £560 in taxes (you still have to pay taxes on award flights).  But hold on a second, assuming I spend £10,000 on my BA card in a year, I get a free companion flight. So now I've gotten 2 flights for £440 plus £1020 (taxes x2), a saving of £15,000 !

Is the penny starting to drop yet ? :)

Check back next time, to hear about the various hotel brand's loyalty programmes, the best way to get the most out of them, and the choices I've made. 

Feel free to click the comment icon below and leave a comment or question !

1 comment:

  1. Cool blog, interested to know how you get on actually booking your big American adventure :)