LoyaltyLobby
  • News
  • Hotel Promos
    • Accor
    • Best Western
    • Radisson Rewards
    • Choice
    • Fairmont
    • Hilton
    • World of Hyatt
    • IHG Rewards
    • Marriott
    • Ritz-Carlton
    • Starwood
    • Wyndham Rewards
  • Reviews
  • Contact Us
  • Blog View
  •  
LoyaltyLobby
  • News
  • Hotel Promos
    • Accor
    • Best Western
    • Radisson Rewards
    • Choice
    • Fairmont
    • Hilton
    • World of Hyatt
    • IHG Rewards
    • Marriott
    • Ritz-Carlton
    • Starwood
    • Wyndham Rewards
  • Reviews
  • Contact Us
  • Blog View
  •  
LoyaltyLobby
No Result
View All Result
ADVERTISEMENT

IHG Rewards Club Testing/Moving To Variable Point Pricing In 2019

by John Ollila
February 22, 2019
Reading Time: 3 mins read
6

InterContinental Hotels Group made a preliminary earnings announcement for 2018 earlier this week and the press release contained information of interest to our readers.

InterContinental Thalasso Bora Bora

It seems that the IHG Rewards Club is now testing and perhaps rolling out in 2019 dynamically priced award rooms (Hilton Honors model comes to mind).

You can access IHG Rewards Club here.

ADVERTISEMENT

READ MORE: IHG Rewards Club Rate & Bonus Points And Miles promotions

Here’s the part of the press release that may concern some readers:

Strengthen loyalty programme – Continuing to innovate IHG Rewards Club to build stronger and deeper relationships with our guests to drive high value revenue across our hotel estate

  • Loyalty room revenue contribution up 4% pts in 4 years to 43%, including ~50% in the Americas.
  • Loyalty members 7x more likely to book direct, and deliver a 25% stay premium.
  • Testing new features for 2019 roll-out, designed to increase member engagement with variable point pricing.

The “loyalty room revenue contribution” shouldn’t come as a surprise to anyone because if you now book on IHG’s website they basically force you to sign up for the loyalty program even if it is just one off stay to get their lowest rate (member only rates – instant loyalty program sign up during the reservation process).

Loyalty member stay premium can come from number of sources such as booking higher category rooms/suites.

Not sure how “variable point pricing” is going to increase member engagement? Having fairly priced standard rewards would be the way to go.

UPDATE: I requested clarification from the spokesperson and here’s the response:

As part of a continued effort to enrich the value proposition for our IHG Rewards Club members, we’ll be introducing variable pricing on reward night redemptions. We’re testing new features for a planned roll-out this year, and will be sharing additional details as they are available.

Conclusion

IHG Rewards Club needs to be very careful with their implementation of the variable point pricing. OTA’s such as Hotels.com have their own loyalty programs that promises a free night for every ten nights consumed (average night cost) and IHG is not the only hotel loyalty program in town, either.

I would assume that they will assign a value of perhaps around quarter of a cent (looking at the value when used for merchandise) to max half of a cent per point when pricing paid rates dynamically.

This would mean that something like InterContinental Thalasso in Bora Bora would be 200,000 to 400,000 points per night and these new Six Senses hotels, when part of IHG Rewards Club, 400,000 to 800,000 IF there are no standard award maximums in place ala Hilton.

Variable point pricing would work in our favor when paid rates are low relative to the hotel’s standard point rate, when currently using points would make absolutely no sense at all. Remember those examples when the cash portion of the Points & Cash is higher than the paid rate for the same hotel?

I have no issue with this if implemented like what Hilton has done, where they have the maximum standard award pricing but you can use your points dynamically towards other rooms/suites or even the standard one when the paid rates are reasonable.

We will keep our readers updated about the changes coming in 2019….

Previous Post

Airfare of the Day: Turkish Airlines BUSINESS CLASS Atlanta GA (ATL), United States to Lisbon (LIS), Portugal from $1,925 Round Trip

Next Post

LAST CALL: British Airways Executive Club Buy & Gift Avios 50% Bonus Through February 24, 2019

Related Articles

Russia Hotels Gone From IHG’s Website (Still Available On The App)

Russia Hotels Gone From IHG’s Website (Still Available On The App)

John Ollila
May 27, 2022
5

Russia's war ("special operation") with Ukraine has now been going on for three months, and finally, IHG has removed hotels...

IHG Japan 35% Off Flash Sale For Stays Through December 29, 2022

IHG Japan 35% Off Flash Sale For Stays Through December 29, 2022

John Ollila
May 24, 2022
1

IHG has now launched its latest Flash Sale for stays at participating hotels in Japan through December 29, 2022. IHG...

IHG One Rewards Incidentals On Award Stays Not Eligible For Elite Bonus?

IHG One Rewards Incidentals On Award Stays Not Eligible For Elite Bonus?

John Ollila
May 23, 2022
7

Various guest loyalty programs have different approaches when it comes to award stays and their eligibility for bonus points and...

Upgrade Your Travel IQ

Make the most of your travel with our free and daily newsletter with the latest hotel and airline news and promotions.

We do not sell or share email addresses.

ADVERTISEMENT

Trending

Hilton Honors “Points In The City” 2,500 Bonus Points Per Stay February 3 – May 1, 2022
Hilton Honors

Hilton Negotiated Rates For Business & Leisure Travel

May 26, 2022
Hertz Gold Plus Rewards Member Tier Extension Through January 2022
Hertz

Reader Email: Hertz Return Scam In Germany

May 25, 2022
Hilton Go Employee And Friends & Family Rate Plans
Hilton Honors

Hilton Go Employee And Friends & Family Rate Plans

July 25, 2021
New Japan Coronavirus Travel Restrictions Effective March 9, 2020
Travel News

Japan Allows International Visitors On Package Tours From June 10, 2022

May 26, 2022
Thailand Contemplates Scrapping “Thailand Pass” Entirely
Featured

Thailand Pass Changes June 1, 2022 (Gone For Thais)

May 20, 2022

Top Categories

  • IHG Rewards Club
  • Hilton Honors
  • Marriott Bonvoy
  • Accor ALL
  • Airfare Of The Day
  • Starwood Preferred Guest (SPG)
  • Hyatt – World of Hyatt
  • American Airlines – AAdvantage
  • Travel News
  • United Airlines – Mileage Plus
ADVERTISEMENT

All Categories

In Case You Missed It

Etihad Guest Miles Sale: Buy Additional Miles With 45% Bonus Through June 1, 2022

Etihad Guest Miles Sale: Buy Additional Miles With 45% Bonus Through June 1, 2022

May 24, 2022
Buy US$10,000 (THB 350,000) Worth Of Thai Airways Credits & Receive Two Years Royal Orchid Plus Gold Status

Buy US$10,000 (THB 350,000) Worth Of Thai Airways Credits & Receive Two Years Royal Orchid Plus Gold Status

May 25, 2022
Radisson Rewards Americas 35% Off Hot Hotel Deals Through July 2, 2022 (Book By June 12)

Radisson Rewards Americas 35% Off Hot Hotel Deals Through July 2, 2022 (Book By June 12)

May 26, 2022
Qatar Airways Up To 10% Off Through June 30, 2022 (Book By December 15)

Qatar Airways Privilege Club Double Avios Through December 31, 2022 (Book May 23 – June 5)

May 23, 2022
Hilton Honors “Points In The City” 2,500 Bonus Points Per Stay February 3 – May 1, 2022

Hilton Negotiated Rates For Business & Leisure Travel

May 26, 2022
ADVERTISEMENT

Since 2011, we have been helping millions of visitors like you untangle travel loyalty programs for free upgrades, flights and hotel nights.

Facebook Twitter Youtube Instagram

Site Navigation

  • About LoyaltyLobby
  • News
  • Reviews
  • Airfares
  • Contact Us

Hotel Promotions

  • Accor
  • Hilton
  • IHG Rewards
  • Marriott
  • World of Hyatt

Sign Up For Our Newsletter

Our free daily newsletter sends you the latest information on hotel and airline programs.

We do not share or sell email addresses.

Site & Contents ©2011-2022 LoyaltyLobby.com
Terms of Use & Privacy Policy

  • News
  • Hotel Promotions
    • Accor
    • Best Western
    • Choice
    • Fairmont
    • Hilton
    • IHG Rewards
    • Marriott
    • Radisson Rewards
    • Ritz-Carlton
    • Starwood
    • World of Hyatt
    • Wyndham Rewards
  • Reviews
  • Contact Us
  • Blog View
No Result
View All Result

© 2011–2021 LoyaltyLobby.com - Site & Contents