Increasing the gas temperature at the inlet to the high pressure turbine of gas turbine engines is known as a proven method to increase the efficiency of these engines. However, this will expose the blades’ surface to very high heat load and thermal damages. In the case of the un-shrouded turbine blades, the blade tip will be exposed to a significant thermal load due to the developed leakage flows in the tip gap, this leads to in-service burnout which degrades the blade tip and shortens its operational life. This paper studies the in-service burnout effect of the transonic tip flows over a cavity tip which is a configuration commonly used to reduce the tip leakage flows. This investigation is carried out experimentally within a transonic wind tunnel and computationally using steady and unsteady Reynolds Averaged Navier Stokes approaches. Various flow measurements are established and different flow behaviour including separation bubbles, shockwave development and distinct flow interactions are captured and discussed. It is found that when the tip is exposed to the in-service burnout, leakage flow behaves in a significantly different way. In addition, the effective tip gap becomes much larger and allows higher leakage mass flow rate in comparison to the sharp-edge tip (i.e. a tip at the beginning of its operational life). The tip leakage losses are found much higher for the round-edge cavity tip (i.e. a tip exposed to burn-out effect). Experimental and computational flow visualisations, surface pressure measurements and discharge coefficient variation are given and analysed for several pressure ratios across the tip gap.