Intercontinental Hotels Group (IHG) increases award prices during the pandemic because, well, that’s who they are.
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IHG Increases Award Prices
If you follow other Boarding Area blogs, you’ve likely seen that some IHG hotels have once again increased the cost of IHG points required for a free night. Just a few years ago, the top price for any property in the hotel chain didn’t exceed 50,000 points per night.
Those days are long, long gone. Select properties have now moved on the award chart from 70,000 (heretofore the previous high redemption rate) to more than 100,000 points per night. IHG recently purchased a few chains at the top end of the market, but these are not reserved for the 25 newly acquired Regent and Six Senses properties. There’s even a Holiday Inn thrown in the mix at 109,000/night and it’s only a matter of time before the Crowne Plaza Philadelphia or Hotel Indigo Houston Galleria ascends to rates usually reserved for the top of the food chain.
More Proof IHG Hates Its Members
I have railed on IHG for how it treats its members, most specifically, its elites. IHG is one of the largest chains in the world and it’s an utter miracle that they’ve been able to operate with complete apathy for their most loyal customers.
All hotel chains move some properties up and down from year to year, but a word to the wise (or in IHG’s case, whoever is still paying attention), this probably isn’t the year to add a 30-40% premium on ANY hotel redemptions. The market is just showing the earliest signs of recovery in the US, and their move is to penalize those who hold IHG Rewards points?
Wow.
When compared to the rest of the chains, IHG has the highest requirements for top-tier elite status (Spire) at 75 nights. It charges, yes charges, members for Ambassador status assuming they meet the other qualifications. The program’s biggest benefit (in exchange for $200/year) is a free weekend night certificate and a credit for the minibar. Late checkout is rare and 2pm at best, there’s no free breakfast – ever. Upgrades are scarce though not impossible, but nowhere near programs like Hyatt and Hilton which routinely upgrade or guarantee an upgrade. That assumes that you’re staying in one of the couple dozen properties where an upgrade would be significant.
IHG Rewards is so bad it makes Marriott Bonvoy look saintly.
I revert to my previous statement: if there was ever a year to do this, we could safely say 2020 and 2021 would not be those years.
Fool Me Once, Shame on You
Many readers on this site already know that IHG hates its elites and obviously loathes those who collect their points. Even if that statement seems too extreme, they’d have a hard time defending their move in this regard. But my contention isn’t for the loyal readers here or informed travelers – they already know that IHG would be better off without a loyalty program altogether because at least then they wouldn’t disrespect their own customers.
Where I think the real sin is being committed is their new customers, first-time enrollees in their program, first-time IHG credit cardholders, they don’t know IHG like we do. They didn’t expect them to jack the prices up before they could even redeem their points.
This reminds me of the old adage: Fool me once, shame on you, fool me twice, shame on me.
In this case, IHG has done something shameful, they’ve increased rates on hotels that their members have had practically no opportunity to redeem for in the last year. Just as it appears they will be able to soon, they increase the cost of award nights without notice. New members often save for hotels they want to visit, aspirational properties like Fiji. Properties costing 70,000 now 100,000 or more are out of reach for many.
Conclusion
It’s a shame that IHG increased award prices and hates its elites. I’d love to try out a Six Senses property or Regent, I have had good experiences at the Kimpton hotels I’ve stayed at, however, that’s likely down to Kimpton as an existing brand and not their new overlords. What’s frustrating is that IHG not only doesn’t care to add value to their program or at least elevate to the level of their peers but continually lowers the value of their own program. Best of all they did it at a critical moment in time that shouldn’t be forgotten.
What do you think? Was this a good time for IHG to increase its award chart? Are you a loyal IHG Rewards member? Why?
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Ok. I think it’s crappy of them to do this no notice. But what did you expect? You can’t very well tell people in advance or else they’d book all the cheap rooms! And that’s a not a press release anyone wants to write. What would it say, btw on April 1st we’re going Even More Dynamic (hint hint)? Technically, we were forewarned when they went dynamic the first time. Yes it sucks but the prices will eventually come down.
“Prices will eventually come down” and dynamic pricing says that prices will only go up from here. This is the absolute bottom for hotel occupancy, so if these are dynamically priced to reflect room rates/occupancy then the only way prices could drop would be if they were completely empty, right?
Airlines, hotels seemed to be nice, caring… at the beginning of the pandemic. Since the announcement of the covid vaccines, the prices of airfare (both revenue and award tickets) rise significantly. Just check UA for a few routes, ticket price is almost double. Devalue programs, more money from passengers… the formula is not new.
Fool me once, shame on you?
Fool…
We can’t get fooled again!
Glad someone caught the reference.
Terrible news, but I’m sitting on 450K IHG points I’ve barely touched in years. Booking IHG even on points is kind of a last resort.
That being said, when I have booked Holiday Inn I’m usually able to talk my way into an upgrade with my Plat status from the Chase card. You have to be proactive though.
Your statement of fact that IHG has the strictest requirement for top-tier status is not true. Marriott requires 100 nights and $20,000 in spending for top-tier ambassador status.
True, I should have rephrased it. “Highest traditional tier with no spending requirement,” since Marriott is the literal only one with this level and requirement.
I still consider United 1k and American Executive Platinum to be top-tier because those requirements are published whereas Concierge Key and Global Services are not and vary from market to market. Bonvoy Ambassador is published and doesn’t vary but it also seems superfluous to have a single super tier when compared to every other hotel chain: Hilton, Hyatt, Accor, Best Western, IHG, etc that all have their top tier without the revenue requirement.
I only keep my IHG top-tier spire status because my wife likes doing a week every year at the Intercontinental Le Grand in Paris. Happy wife, happy husband. They normally a decent upgrade, provide two drink vouchers, and place a nice bottle of champagne ($50-$60 champagne) in my room. Breakfast or lounge access would be nice, but this would only be meaningful at most Intercontinental properties and some Crowne Plaza properties. There are very few Holiday Inn properties domestically with a good breakfast or a club lounge. I’ve never even come across a good Crowne Plaza domestically. There are a few okay ones internationally.
When you compare that to what you get for fewer points: https://bitly.com/31MX3t6
If we just ignore the point inflation and agree that with the signup of a new Hyatt or IHG card you’ll get two nights at Le Grand or Vendome, which is objectively the better value/experience?
Just a couple of years ago I was Spire, Globalist, Diamond, and SPG Platinum simultaneously, each had its role for point and night accumulation in my travels. But when I went to redeem those points for premium experiences, it didn’t take long for me to abandon IHG altogether. As much as I dislike Bonvoy, I’d still give it a 6/10 for Platinum status. Spire is struggling to hit 3/10. Why spend 75 nights at IHG properties to get a week at a great hotel in Paris with minimal perks when you could do the same for 60 nights with Hyatt and move those remaining 15 to a secondary program like Hilton for additional premium opportunities?
@Kyle Stewart. I generally concur. I don’t do 75 nights. I’ve been platinum before with IHG because of the credit card. Years ago, I had ambassador status with Intercontinental because I paid. I got some value out of that, all things considered. I hit spire in 2019 for 2020 because of a really good year of travel. My 2020 spire status was extended by IHG into 2021. I doubt I’ll keep it by staying enough nights. As for which hotel Paris is nicer (Intercontinental Le Grand or Park Hyatt Vendome), that’s debatable. You can’t beat the architecture of Le Grand nor its history. Park Hyatt is probably slightly more nouveau riche. The rich, rich stay at the Four Seasons Hotel George V. Of the Park Hyatt, Le Grand and Prince de Galles Luxury Collection, I think Prince de Galles is probably the nicest because it’s the most intimate. Le Grand is probably the most mass-market and somewhere between a very nice J.W. Marriott and Ritz-Carlton. There are a couple very nice Marriott Renaissance properties in Paris that are legit 4 1/2 or 5 starred hotels. But at the end of the day, my wife has a sentimental attachment to the Intercontinental Le Grand so I’ll take her there.
If owned an upscale IHG-branded hotel franchise, I would start asking myself what value I get out of IHG’s loyalty program.
Many, if not most, of IHG’s upscale properties under Intercontinental or Hotel Indigo are far from the best hotel in their respective markets. With bad elite status benefits, they’re missing out on a lot of points-conscious business travelers on expense accounts. At the same time, the continued devaluation of points means they are also missing out on aspirational, award-redemption guests who would otherwise fill rooms in a nice but far from the nicest hotel in a given market.
Typo . I meant to say, “If I owned …” and not “If owned …”
When I look at IHG’s brands, I basically see Hotel Indigo as a Tribute Portfolio; non-resort Intercontinental as an average or good JW Marriott; Holiday Inn as a Delta; and Crowne Plaza as a Sheraton or maybe an old Marriott. Outside Asia or some tropical resorts or islands, I can’t think of too many IHG properties that are the best property in its market.
“The program’s biggest benefit (in exchange for $200/year) is a free weekend night certificate” – Not so fast! This too is a scam because to use the free Ambassador weekend night certificate you have to book two nights (pay for one) and MUST call a special phone number where the rates are MUCH higher than what you can get by booking direct on the IHG website. The two times I have used the certificate, I was only able to save around $40 off just paying for the two weekend nights with cash. When I get a free weekend night certificate, I expect to only pay 50% of the cost of a two-night weekend stay, not 85%!!! I have been a loyal IHG member for a long time because of the past ease of getting IHG points in the past. Not anymore! The Hilton loyalty program is so vastly superior that comparing it to IHG would be like comparing a Rolls Royce to a bicycle – I am not exagerating.
All the more evidence that IHG hates its elites. Thanks!
Hi, Kyle. I just shared this in the “IHG Rewards Members” group on Facebook. It would be wonderful if you and Matthew joined our nearly 5K members.
I just brought some IHG points, can I return this? Just got a CC from IHG thru Chase. I’m livid n feel ripped off..
Might be able to cancel or switch products, call them and see what they can do for you.
The only reason I could think of is that IHG wants to discourage award redemption this year and push guests into buying rooms.
Keep in mind, IHG has to pay the hotels for reward rooms – they are low on cash, just lost a huge portfolio in the USA (no income). Hotels also don’t want guests to book these low revenue rewards as the reimbursement is low unless the hotel is nearly full.
The idea still may backfire as many IHG members may simply burn their points and then move on.. rewards won’t get cheaper in the future anyway