IHG Best Price Guarantee Violation Fee

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The list of fees that franchised hotels must pay for the chain is really long and these are usually public information that must be made available for prospective franchisees.

IHG Rewards Club Best Rate Guarantee Intervention Fee

The brand standard manuals, however, are not public, but a LoyaltyLobby reader sent me a link to a Holiday Inn Express one from 2012 that is available on the open net.

It is not a secret that the hotels get dinged if you contact the Guest Relations to help you resolve an issue that you may have with the property.

Now, the hotels get charged by the IHG $75 for every successful Best Rate Guarantee case and the IHG calls this a “violation”. So, not only the hotel is out for the nights revenue but they have to pay $75 fee for the IHG as well for handling the claim.

Conclusion

This Best Rate Guarantee program must be very profitable for the IHG as a corporation. They have employees in the Philippines that probably get paid $500 to $700 each per month processing these claims day and night.

For each violation the IHG gets to charge the property $75, although the cost for IHG is a lot lower.

On a side note, 3rd party websites still continue offering lower rates than IHG most of the time, but fulfilling onerous successful claim requirements has become a sport on itself.

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