As first reported by Rewards Canada, there’s more information available about the upcoming transition from HSBC Rewards to RBC Avion Rewards. After publishing this article, we’ve received additional information from RBC, and have added it below.
While the exact conversion rates are still not known, we have more insight into what we might expect, which can help you decide what to do with your existing HSBC Rewards balance.
More Details Regarding the HSBC Rewards to RBC Avion Rewards Transition
RBC has provided more insight into what customers can expect in the upcoming transition from HSBC Rewards to RBC Avion Rewards.
As a reminder, your HSBC Rewards points will be converted to RBC Avion Rewards points as part of RBC’s acquisition of HSBC Canada. The acquisition is set to be completed by the end of March 2024.
Previously, RBC has stated that the transfer will be at a comparable ratio, but has remained mum on the exact transfer ratio. Without knowing the rate at which your HSBC Rewards will be converted to RBC Avion Rewards, it’s been difficult to make a decision whether to redeem them now or wait for the conversion.
However, we now have some more insight into what cardholders can expect, and if it turns out to be the case, it should be sufficient to guide your decisions on whether to redeem now or wait.
First off, HSBC Canada customers won’t receive confirmation of the conversion value until after it’s taken place.
Clients will receive a communication with more information about the conversion of their points within one week of migration.
We can infer that this is because some cardholders will be transitioned to products that earn RBC Avion points at the Elite tier, while others will be transitioned to products that earn RBC Avion points at the Premium tier. It seems that there won’t be blanket conversion rates that apply to everyone, and rather, it will be unique to each cardholder’s situation.
Despite not knowing exact conversion values, there’s now more information available that should help guide your decision on whether to redeem your HSBC Rewards points now or to wait for the conversion, which we’ll discuss in detail below.
RBC has shared that HSBC Canada clients will receive equal or greater value with their converted points based on flexible redemptions.
We can share that all HSBC Bank Canada clients migrated to RBC will receive an Avion points balance that will have equal or higher value in the flexible travel redemption category in the same way they book their travel today.
As a reminder, HSBC Rewards can be flexibly redeemed against travel at a rate of 0.5 cents per point, while RBC Avion points at the Elite tier can be flexibly redeemed against travel booked through the Avion Rewards platform at a rate of 1 cent per point.
Therefore, for those being transitioned from an HSBC product to an RBC Avion product, we project that the minimum conversion rate might be 2 HSBC Rewards points = 1 RBC Avion Elite point.
With HSBC Rewards earned on either the HSBC +Rewards Mastercard or the HSBC Travel Rewards Mastercard, you can also flexibly redeem points against travel at a rate of 0.5 cents per point.
Since you’ll be transitioned to the RBC ION Visa, which earns RBC Avion points at the Premium tier that can be flexibly redeemed against travel booked through the Avion Rewards platform at a rate of 0.58 cents per point, we project that the minimum conversion rate might be 1.16 HSBC Rewards = 1 RBC Avion Premium point.
It’s worth reiterating that the exact transfer ratios aren’t known, and won’t be known until after the conversion has taken place. However, if these ratios turn out to be true, or maybe even better, we have more guidance on whether it’s best to redeem now or wait.
There is no specified date for the conversion to take place; however, once it does, you’ll have full access to your new batch of RBC Avion Rewards points within a week.
Should You Redeem HSBC Rewards Points Now or Wait?
Assuming that the estimated minimum conversion rates are accurate, let’s take a look at whether it’s in your best interest to redeem now or wait until later.
However, keep in mind that the exact transfer ratio won’t be known until after the conversion, so if you’d rather lock in a redemption with 100% certainty, you’ll want to redeem your HSBC Rewards points now.
As a reminder, the last day to transfer HSBC Rewards to airline partners is February 29, 2024.
Customers being transitioned to the RBC® Avion Visa Infinite†
If you’re being transitioned from the HSBC World Elite Mastercard, your options for redeeming HSBC Rewards currently include the following:
- Redeem against travel purchases at a rate of 0.5 cents per point
- Transfer to British Airways Executive Club at a 25:10 ratio
- Transfer to Singapore Airlines KrisFlyer at a 25:9 ratio
- Transfer to Cathay Pacific Asia Miles at a 25:8 ratio
After the transition, you’ll earn RBC Avion points at the Elite tier, which can be redeemed as follows:
- Redeem against travel purchases at a rate of 1 cent per point
- Redeem for flights on the RBC Air Travel Redemption Schedule for up to 2.33 cents per point
- Transfer to British Airways Executive Club at a 1:1 ratio
- Transfer to Cathay Pacific Asia Miles at a 1:1 ratio
- Transfer to American Airlines AAdvantage at a 1:0.7 ratio
- Transfer to WestJet Rewards at a 100:1 ratio
Depending on how you’d like to redeem your points, it should result in the same or better value if you choose to wait for the conversion.
To illustrate this, we’ll use an example of someone with 105,000 HSBC Rewards points who’s transitioning from the HSBC World Elite Mastercard to the RBC® Avion Visa Infinite†. Plus, we’ll assume that their HSBC Rewards will be converted to RBC Avion points at the Elite tier at a 2:1 ratio.
If you tend to redeem points flexibly against travel purchases, then it makes no difference to redeem now or later.
105,000 HSBC Rewards points can be redeemed for $525 against travel purchases. If they’re converted at a 2:1 ratio, you’d be able to flexibly redeem 52,500 RBC Avion Elite points against $525 worth of travel.
However, it’s worth noting that with HSBC Rewards, you can book travel directly with any vendor, and then redeem points against charges posted to your statement. Booking this way ensures you’re eligible for earning points with airlines and hotels, and also makes you eligible for status qualifying activity.
On the other hand, to redeem RBC Avion points for travel, you must book through the Avion Rewards platform, which may limit your ability to earn points from airline and hotel programs, and could also make you ineligible for elite qualifying activity.
If you plan to make use of the RBC Air Travel Redemption Schedule for booking flights, it’s likely in your best interest to wait for the conversion, since you can unlock more value for your points by doing so.
That’s because you can redeem RBC Avion points at the Elite tier for up to 2.33 cents per point with the Air Travel Redemption Schedule.
If you planned on transferring your HSBC Rewards points to British Airways Executive Club or Cathay Pacific Asia Miles, it’s likely in your best interest to wait for the conversion.
105,000 HSBC Rewards points is equal to 42,000 British Airways Avios, or 33,600 Asia Miles.
Assuming that 105,000 HSBC Rewards will be converted to 52,500 RBC Avion points at the Elite tier, you could then convert them into 52,500 British Airways Avios or 52,500 Cathay Pacific Asia Miles.
However, if there’s a transfer bonus from RBC Avion to either program after the conversion has happened, you’d wind up with an even better rate.
It’s worth noting that 52,500 RBC Avion points at the Elite tier could also be transferred to 36,750 AAdvantage miles, or 525 WestJet dollars. AAdvantage is otherwise quite difficult to access, and there are some great redemption options available in the program, so be sure to consider it as an option, too.
If you have your eyes set on a Singapore Airlines KrisFlyer redemption, you’ll want to make your transfer before February 29, 2024. After that point, it will no longer be possible to transfer Canadian points currencies to KrisFlyer, aside from Marriott Bonvoy points, since RBC Avion Rewards doesn’t have it as a transfer partner.
Customers being transitioned to the RBC® ION Visa
If you’re being transitioned to an RBC® ION Visa, then your HSBC Rewards points will be converted to RBC Avion points at the Premium tier, which are less flexible than RBC Avion points at the Elite tier.
It shouldn’t make a difference whether you redeem your HSBC Rewards points against travel purchases now, or wait until later, since you’ll likely wind up with the same rate.
Plus, you can also choose to transfer your RBC Avion points at the Premium tier to WestJet Rewards, which could result in a higher redemption value.
However, keep in mind that if you eventually get an eligible RBC Avion credit card, such as the RBC® Avion Visa Platinum, RBC® Avion Visa Infinite†, or RBC® Avion Visa Infinite Privilege†, you can convert your RBC Avion points at the Premium tier into RBC Avion points at the Elite tier at a 1:1 ratio.
Therefore, if you find yourself in this position, it’s likely in your best interest to wait for the conversion, and then plan on adding an RBC Avion credit card product to your wallet in the future to unlock more value from your points.
Credit Card Best Offer Value 
Up to 70,000 RBC Avion points† $801 Apply Now 
35,000 RBC Avion points $700 Apply Now 
35,000 RBC Avion points† $580 Apply Now 
35,000 RBC Avion points $580 Apply Now 
35,000 RBC Avion points† $580 Apply Now
Customers being transitioned to the RBC® Avion Visa Infinite Privilege†
Lastly, if you’re being transitioned to an RBC® Avion Visa Infinite Privilege†, you’ll also be moved to a card that earns RBC Avion points at the Elite tier.
However, one unique feature of the RBC® Avion Visa Infinite Privilege† is that you can redeem RBC Avion points for business class and First Class tickets at a rate of 2 cents per point.
If you plan on redeeming points this way, it’s in your best interest to wait for the conversion, since you’ll be able to unlock more value from your points by doing so.
For example, assuming 125,000 HSBC Rewards points are converted to 62,500 RBC Avion points at the Elite tier, you’d then be able to redeem them for up to $1,250 (CAD) worth of business class and First Class flights at 2 cents per point.
Perhaps one great example of this would be to book a round-trip Emirates A380 First Class flights between Bangkok and Hong Kong, which routinely price out at around $1,225 (CAD).
Conclusion
We now have more insight into how RBC will convert existing balances of HSBC Rewards into various tiers of RBC Avion Rewards points.
Assuming the conversion estimates are accurate, you should get either the same or better value by waiting for the conversion, rather than redeeming your HSBC Rewards points prior to the conversion.
However, it’s worth reiterating that the exact conversion rate will be unique to each individual, and it won’t be announced until after the conversion has taken place.
Therefore, if you’d rather be 100% certain of the value you can get from your points, you can choose to redeem your points now, knowing that it could be possible to get better value once the conversion takes place.
†Terms and conditions apply. Refer to the card issuer’s website for complete, up-to-date information.