We earlier today published a piece about the possible Pros and Cons of dynamically priced hotel awards (read more here), and (not so) surprisingly, there are far more cons than pros.
I thought it would be a good idea to look at how Accor (purest dynamically pricing chain), Hilton, and IHG all deal with this issue.
Accor
Accor is the purest hotel company that we cover that prices hotel awards dynamically to the penny. So 2,000 points are worth exactly 40 euros.
Movenpick Maldives
Hilton
Hilton is a bit complicated. Although they were abolished, it has award categories in place, and each hotel has the maximum number of points that a standard award room can cost. Sometimes they are less when the rates are low.
You can book Premium Room using points that are entirely dynamically priced.
Here’s an example from Waldorf Astoria Maldives
The villa would cost $5,103.24 or 1,494,000 points. The value of a point is 0.34 each
You can always use your points towards Amazon purchases that value each Honors point at 0.2 cents each.
IHG
IHG is the latest to the dynamic awards are they are partially all over the ma right now, but usually, the rough value of a point is 0.4 to 0.7 cents each.
InterContinental Thalasso Bora Bora
The value of a point here is 0.72 cents each (higher than usual)
InterContinental Bangkok
The value of a point here is 0.42 cents each
Conclusion
I like Hilton’s approach the most. You have the points caps in place for standard rooms, but they can be had fewer points when the room rates are low. You can also use points towards premium rooms at a rough value of .34 cents for each point.
Accor’s approach is the “cleanest” the value of points is set at 40 euros for every 2,000 points that you can use towards most rates.
IHG points values are still somewhat all over the map and perhaps driven partly by market demand. The point value is the highest when the demand is the lowest (midweek) and not during the weekends when most would redeem.
Accor definitely has the fairest redemption program. Previously, one had to redeem 2000 points for a €40 paper voucher that could only be used on rates that didn’t require advance payment. But the new system allows online redemptions on pretty much all rates. Kudos!
unfortunately I have a huge amount of IHG points which I can’t use anymore because we now have 2 kids in the family and therefore now always need a room for 4 people. IHG however only makes the most basic room available for redemptions so in the cities I usually go to, there is no availability for redemptions for 4 people at all (I therefore also avoid booking cash rates anymore and have moved all of my business to other chains as I have no use for the points at IHG). my silver lining on this dynamic pricing of redemption nights is that they could make all room categories available as it is a pure conversion rate used but I’m definitely not holding my breath…
Sorry to hear that you can always gift your points to a family member or a friend if your not going to use. At least someone would get the value. Even a stranger.
Goes back to cash is king on rewards as this funny points money deflates at a faster pace than Venezuela’s currency… Also have way too many IHG points and feel conned after the 100% bonus sale on points with the immediate devaluation this Spring. IHG has lost my loyalty as so as I can deplete. They can take my Spire status and stick it where the sun doesn’t shine as I am done with them.
I sure would except points if your no longer going to use.