If you travel often for business, you’ll probably be familiar with the Avios scheme and with the amazing feeling you get when after months of stockpiling points you can finally go in and book a flight almost for free.
A business credit card that earns Avios points could speed up the process. A lot. Let’s dig deeper.
Representative example: When you spend £1,200 at a purchase rate of 39.9% (variable) p.a., your representative rate is 39.9% APR (variable).
Avios is a frequent flyer programme. You can earn points in a number of different ways, from booking flights with partner airlines to shopping at partner retailers (there are more than 150, from Apple to Domino’s to M&S), to using a credit card that earns Avios points.
Similarly, points can then be redeemed for a number of rewards, from free flights and hotel stays to wine gifts.
You’re probably the best person to judge if and how your business can benefit from Avios, but here are a few thoughts which may point you in the right direction:
Bad news first: it can’t. Avios is a “personal” frequent flyer scheme: your Avios account only belongs to you, and you’ll be the only person able to use your membership card. So yeah, if different people in your business fly often, they’ll have to open different Avios accounts.
However, that doesn’t stop anyone from earning Avios points during their business trips or from redeeming them for business flights. It just means that points earned by different people can’t be accumulated into a single account.
In order to join Avios, you need to join one of its partner airlines’ clubs. You can choose among British Airways Executive Club, Iberia Plus, AerClub and @MyAirItalyClub. They’re all free, so it all comes down to which airlines you use the most. Once you’ve joined, you’ll be given a card and a membership number that you can use or quote every time you want to collect or redeem Avios points.
We can hear you thinking: if you can’t join Avios as a business, why on earth should I get a business credit card that earns Avios points? Well, that’s exactly the point. These business credit cards let you earn Avios points on all your business spending, no matter what you’re paying for or that you’re actually the person in whose name flights and hotels are being booked.
With those cards, you earn points on the card’s scheme every time you use your business credit card. Those points can then be converted into Avios points and added to your personal Avios account, even though they have been collected on business spending (potentially by different people if you let your colleagues use your card or give them additional cards).
Unlike with personal credit cards, the selection of credit cards earning Avios points isn’t exactly huge: basically, you can choose between Capital On Tap and American Express business cards. To make the right decision, you should consider:
Ultimately, it’s all about figuring out how much business spending you need to do on the card, and whether it’ll get you enough rewards to make up for the annual fee.
It’s also worth noting that these cards are all about the rewards but leave much to wish for when it comes to using them for borrowing. The Amex business cards are all charge cards, so you must pay the bill in full every month, while Capital On Tap’s credit cards have quite a high representative APR, so carrying a balance on them will turn out quite expensive.
Amex offers one business card that earns Avios, but its other business rewards cards let you collect Membership Rewards Points that can then be transferred to Avios.
Approval for any credit card will depend on your status. The APR shown represents the interest rate offered to most successful applicants. Depending on your personal circumstances the APR you're offered may be higher, or you may not be offered credit at all. Fees and rates are subject to change without notice. It's always wise to check the terms of any deal before you borrow.
Unfortunately, there aren’t any other frequent flyer business credit cards available on the market at the moment, so if you have a different airline in mind, you’re out of luck. However, the Amex cards are still worth a thought because Membership Rewards points can also be redeemed for miles and points with a number of other airlines, including Delta and Virgin Atlantic.
Alternatively, you could consider a cashback business credit card: less fancy a reward, but you get more choice in terms of financial features.
Finally, if you’re looking for a business frequent flyer programme, have a look at British Airways’ On Business scheme. It lets you earn points as a business and redeem them for reward flights, while also earning Avios on your personal account.
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