IHG seemingly increased its unofficial award pricing caps: Here's what it means for you
In 2020, IHG switched to dynamic award pricing; since then, award rates at most properties have generally varied alongside paid rates. As a result, it's become increasingly difficult to get outsize value when redeeming IHG points.
Over the last few months, I've gotten between 0.7 and 1.1 cents per point when redeeming IHG One Rewards points for stays. Especially considering you can buy IHG points for as little as 0.5 cents per point, I've been pretty satisfied with these redemptions.
However, the negative of dynamic award pricing is that rates can (and do) change at any time. IHG can change its algorithm — including any unpublished caps or minimums — at any time without notice. Based on reports from FlyerTalk users and a subsequent article from LoyaltyLobby, IHG seemingly increased some of its award pricing caps April 4.
In particular, nonresort properties that previously had unpublished award pricing caps of 120,000 points per night now seem to have higher caps (or perhaps no cap). For example, the InterContinental Paris — Champs-Elysees Etoile in France now has rates as high as 149,000 points per night.
And I found a night at the InterContinental Osaka that cost 192,000 points. The comparable paid rate for this night is $827.06, which means you'd get a value of 0.43 cents per point. If I needed to stay in Osaka that night, I'd redeem points from another program or at least stay at another IHG property.
This increase of unpublished award pricing caps is bad news for anyone who likes to (or was planning to) redeem IHG points for an aspirational stay at an expensive IHG property. After all, one of the ways to get outsize value from your points is on expensive nights that hit the award pricing cap.
As a reminder, IHG already capped award nights at 250,000 points for several aspirational resort properties. Luckily, this cap seemingly hasn't changed.
But it's worth noting that in 2020, the InterContinental Maldives Maamunagau Resort was the most expensive award property in the IHG portfolio at 100,000 points per night. Now, award nights at this property top out at 250,000 points per night. Regardless of how you look at it, that's a huge devaluation over a relatively short time.
Related: How to maximize award redemptions with the IHG One Rewards program
Bottom line
It's difficult to tell when a loyalty program that uses dynamic award pricing changes how it prices award nights. But it sure looks like IHG has increased, or perhaps removed, award pricing caps for many of its most aspirational nonresort properties. I also suspect IHG may have shifted its algorithm to give lower redemption rates on some aspirational and high-occupancy stays, but this is more difficult to determine without having access to an extensive data set.
Depending on how you use your IHG points, the April 4 changes may not be negative for you. Since April 4, I've booked a few IHG award stays at slightly better redemption rates than I'd been getting over the last few months. And since I don't plan to redeem more than 60,000 IHG points for any stay — I use Hilton free night certificates and Hyatt points when booking expensive, aspirational stays — the increase of IHG award caps won't personally hurt me.
However, it's not a good look, especially since many travelers save their points for aspirational stays that carry high paid rates. Although I love the IHG fourth-reward-night-free perk, I appreciate programs like World of Hyatt and Wyndham Rewards that continue to publish and use award charts for most properties.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.