A LoyaltyLobby reader sent us an email about an award at the InterContinental Mauritius where the Points + Cash’s cash rate is higher than the fully paid one.
You can access InterContinental Mauritius’ website here.
READ MORE: IHG Rewards Rate & Bonus Points Offers
Here’s the email from the reader:
I just wanted to bring this to your attention. I was looking at booking the Intercontinental Mauritius and noticed the following.
The room price was 85.5 Euro for the night. For points was a high 42000 points ( It had previously been 30K- 35K )
It is the cash and points rates, however, that are showing that IHG’s current points algorithm is a total scam!
37000 + 29 Eur
32000 + 59 Eur
27000 + 88 Eur
22000 + 104 Eur
As you can see the last 2 rates are points plus more than the actual cash nightly rate!
Since IHG recalculated their algorithm earlier this year ,I can see no logic to how they price and find their value questionable in many cases . I would rather they matched a fixed value than this totally random and obviously flawed current system . IHG should be called out on this!
IHG moved to dynamic awards earlier this year, where the number of points required follows the paid rates. The value of a point is usually around 0.4 to 0.6 US cents each. There is some variation.
Here are some pieces about the IHG’s dynamic award:
- IHG Rewards Club Expands Variable Award Pricing
- IHG Rewards Devalues Dynamic Award Pricing By 30%
- IHG’s Response For Award Night Pricing Change On April 1, 2021
- Has IHG Rewards Tinkered With Dynamic Award Pricing Again?
Previously, when the number of points requried was fixed for each hotel, it was not uncommon to see situations where the cash portion of the Points + Cash was higher than a paid rate. However, these are relatively uncommon now.
I decided to pull up the rates for this InterContinental Mauritius hotel that the reader on their email is referring to.
The paid rate is for the night in November is 85.50 euros that is roughly $101. The rate already includes tax.
Considering the paid rate of $101, the hotel should require roughly 20,000 points for an award, but IHG demands 42,000. The value of a point is less than a quarter of a cent.
I had a lovely stay at this hotel back in 2019 when I was in Mauritius for the first time.
Not sure what is going on with award night pricing at this specific hotel. I checked both Sao Paulo and Bangkok and the point values were within the usual range.
If IHG Rewards points are worth a quarter of a cent each, we should start calling them bolivars considering the rapid point inflation as of late.