Avios Shop doubles redemption limit to 50% but flights still remain better value

Is your Avios balance burning a hole in your pocket? There’s now a new way to put it to work. IAG Loyalty has announced the expansion of the Avios Shop, which means you can now cover up to 50% of a purchase with your points.

The Avios Shop is an online retail platform where members can use their points to part-pay for products. The platform launched in September last year with a limited range of Apple products, but now includes over 300 items. You’ll find everything from iPhones and MacBooks to luggage and smaller travel essentials from brands such as Apple, Aspinal of London, and Briggs & Riley.

In this blog, we’ll explore what you can get with your points per purchase, and if it’s really the best way to spend Avios.

What Has Changed? 

The increase to 50% means you can save more, depending on the price of the item. At the top end, you could take £1,000 off an Apple iPhone 17 Pro Max with 2TB of storage, which sells for £1,999. On the other hand, even a small purchase, such as a £10 luggage tag, can be reduced to £5. 

The payment structure is the same across the shop. Part of the cost is covered with Avios, and the rest is paid in cash. You’ll still collect 2 Avios per £1 spent on the cash portion, regardless of how many points you use.

A few current examples:

• Apple iPhone 17 Pro 256GB: £549.50 + 92,510 Avios
• Apple iPhone 17 256GB: £399.50 + 67,255 Avios
• Carl Friedrik Cabin Suitcase: £222.50 + 37,460 Avios
• Cubitts Black Panton Sunglasses: £75 + 13,345 Avios
• Apple AirPods 4: £59.50 + 10,015 Avios

The return is approximately 0.56p to 0.59p per Avios across all examples, which lines up with typical retail redemptions for Avios and British Airways partners.

What Are My Avios Actually Worth?

The Avios Shop uses a fixed-value model as a substitute for cash. A simple way to look at it:

• 10,000 Avios works out at around £50
• Avios value sits around 0.5p to 0.6p

That’s similar to converting Avios into Nectar and spending them at places like Sainsbury’s or Argos. However, some products in the shop can be found cheaper elsewhere, which lowers the real return further. Retail redemptions effectively set a baseline value for Avios, but not a high one.

That said, a few categories hold up better than others. Apple products don’t tend to see major discounts elsewhere, so using Avios here can still feel like a reasonable trade. 

Delivery is fairly standard. Orders above £100 qualify for free shipping, though using Avios to bring the cash portion below that threshold triggers a £4.99 fee. Shipping is limited to UK addresses, excluding Northern Ireland, the Channel Islands, the Isle of Man, PO and BFPO locations.

When Does It Make Sense to Use the Avios Shop?

There are times when using the Avios Shop can be the right call, even if it’s not the highest-value option. These include:

• When you have a large Avios balance without any upcoming travel plans. Since there’s no point in letting your Avios sit idle, getting something out of them can still feel worthwhile.
• When you want to make an Apple purchase. Getting what works out as a half-price iPhone, even if part of that cost is covered in Avios, isn’t something you’ll easily find elsewhere.
• When you want to buy travel gear. Luggage and accessories tie back to future trips, which makes the redemption feel more relevant.

Why Reward Flights Still Come Out Ahead

While the increase to 50% makes the shop more flexible, it doesn’t change how much each Avios is worth, so the overall value stays the same. You still get more value through reward flights.

Avios and British Airways flight pricing is based on reward charts rather than direct cash equivalents. That difference creates a gap between what a ticket costs in money and what it costs in Avios, and it’s in that gap that the value comes from.

Long-haul Business Class fares can run into the thousands, but the Avios required remain relatively stable. Premium redemptions regularly land between 1.5p and 4p per Avios, depending on route and timing.

Side by side:

• 10,000 Avios is worth approximately £50 in the shop
• 10,000 Avios could return £150 to £400 in flights

That’s a three to eight times difference in Avios value. Avios is designed as a frequent flyer currency, not a cashback scheme, which is why the strongest value continues to come from flights rather than retail.

Airlines structure it this way because empty premium seats have no value once a flight departs. Filling them with Avios bookings makes commercial sense, which keeps redemption pricing attractive. If you’ve ever checked how many Avios for a flight are needed, you’ll already have seen how different the numbers look compared to retail redemptions.

The Hidden Trade-Off

Why some people still sit on the fence, or even prefer to use Avios in the shop, is that, in the latter case, the result is simple and immediate. You see the benefit straight away. However, you can’t tell what you’re giving up in the trade-off by using up your points. When you spend them on retail, you can’t use them for higher-value redemptions later. That’s the part most people don’t factor in.

You can verify this using an Avios value calculator and see how far the same balance stretches when used on travel. An Avios value calculator can also help you compare different routes and cabins before making a decision. That’s why reward flights remain the best way to spend Avios. 

Final Thoughts

Yes, the Avios Shop is a better option now than it was at launch. Increasing the redemption limit makes it easier to use points on everyday purchases and higher-priced items.

But that doesn’t change the underlying value. It still makes more sense to use Avios on flights as they deliver better returns, especially in premium cabins.

Here’s a simple way to think about it: the shop gives convenience, flights give value. So, in a nutshell, if you’re collecting Avios and British Airways points with travel in mind, holding onto them still makes the stronger case.

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