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Points and miles are loyalty currencies. Card points such as Amex Membership Rewards are flexible and can be moved to airlines and hotels. Airline miles such as Avios and Virgin Points book flights. Hotel points book rooms. A point has no fixed value: it is worth whatever you get for it, so work out the pence per point before every redemption.
The four main types
| Type | UK examples | Best used for |
|---|---|---|
| Flexible card points | American Express Membership Rewards | Moving to whichever airline or hotel has the seat or room you want |
| Airline miles | Avios (British Airways, Iberia, Qatar Airways), Virgin Points | Reward flights and upgrades |
| Hotel points | Hilton Honors, Marriott Bonvoy, ALL Accor | Free nights |
| Retail points | Nectar | Money off shopping |
Flexible card points are the most useful for beginners because you do not have to commit to one airline until you book.
How to earn them
- Welcome bonuses. The fastest source. You earn a lump of points for meeting a spending target in the first few months.
- Everyday spending. Typically around one point per pound, with more in some categories.
- Referrals. Many cards pay points when someone you refer is approved.
- Shopping portals and partners. Airline shopping sites pay extra miles for purchases you would make anyway.
- Flying and hotel stays. The traditional route, and usually the slowest.
How to redeem them
- Reward flights. You pay points plus taxes and fees. Usually the best value, especially in premium cabins.
- Upgrades. You buy a cheaper cash ticket and use points to move up a cabin.
- Hotel nights. Value varies a lot by hotel and date.
- Gift cards and statement credit. Simple, and usually the lowest value.
How to work out what a point is worth
Use one sum every time:
Pence per point = (cash price minus the fees you still pay) divided by the points needed.
A worked example
British Airways lists an off-peak business class return from London to New York at 176,000 Avios plus about £499 (price checked 10 November 2026). Suppose the same seats were on sale for £2,800 in cash. That fare is an illustration, so check the real one on the day.
- £2,800 minus £499 leaves £2,301 of value.
- £2,301 divided by 176,000 Avios is about 1.3p per point.
Compare that with the floor. American Express says 25,000 Membership Rewards points are worth up to £125 in gift cards, which is 0.5p per point. In this example the flight returns more than twice as much per point.
Three rules of thumb
- Know your floor. If a redemption pays less than the gift card rate, do not book it with points.
- Compare with a price you would actually pay. A £6,000 fare you would never buy is not £6,000 of value.
- Earn and burn. Schemes change their prices. Points you hold for years tend to buy less.
If most of your points are with American Express, the next step is our guide on how to use Amex points in the UK. If you are starting from zero, begin with travel hacking for beginners.