IHG quietly rolls out dynamic award pricing in Greater China, more regions to come
InterContinental Hotels Group — better known as IHG — has started rolling out dynamic award pricing at select properties in Asia. The hotel chain announced its move to dynamic pricing in its 2018 year-end report with the intent to introduce the new pricing structure in 2019, however, the changes have been delayed until now.
In a statement to TPG, IHG noted that it began introducing "Reward Night redemption flexibility" — its term for dynamic award pricing — on April 23 at properties in Greater China. In addition, the hotel group said that it will be expanding dynamic pricing "more widely through the course of the year as appropriate."
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IHG dynamic pricing in action
As noted by One Mile at a Time, IHG's Hotel Indigo Taipei North in Tapiei, Taiwan is one of the first hotels subject to dynamic award pricing. Award stays now cost between 12,500 and 30,000 points per night depending on the date. Here's a quick breakdown of the four price points we found in our research.
The lowest award price we found was 12,500 IHG points per night on various dates, but it was most common during weekday stays in June and July of this year. We were able to replicate this pricing on various other weekday nights in the early summer too, but redemptions at this level quickly disappeared as we checked dates later in the year. This leads us to believe that awards are pricing at this level due to the global coronavirus outbreak.
Related: The best ways to earn points with the IHG Rewards Club program
The average cash rate for hotels priced at 12,500 points per night is $85.16 after conversion from Taiwanese dollars.
We found rates for 15,000 points per night when searching for stays in February, March and April 2021, however, we were unable to find stays at this price point in 2020. Not all nights in early 2021 priced at 15,000 points though — some 15,000-point stays were surrounded by nights that cost up to 30,000 points per night. The average nightly rate for 15,000-point rooms is $88.75.
17,500 points was by far the most common price point for stays at this property. Almost all dates we searched in mid to late 2020 were offered at this price, including all Saturday night to Sunday stays in August. The average nightly rate for hotel rooms at this price point was $175.
Thankfully, 30,000 points is the least common price point for this property. Nights at this price point are very sparse, and I only found a couple of dates in May and June of 2020 and April 2021 with awards at this level. Oddly enough, many of the hotel nights priced at 30,000 points per night had a lower cash rate than nights at the 17,500-point level. For example, a one-night stay from May 16 to 17 prices costs 30,000 for an award night, but a paid night only costs $134.50 after currency conversion. This is just over $40 cheaper than a night at the 17,500-point level.
Related: Maximizing redemptions with the IHG Rewards Club program
How this affects IHG Rewards Club members
Simply put, the switch to dynamic award pricing means that IHG could change the award price of its hotel rooms based on demand, the cash cost of a hotel room and other factors. Award prices may be lower during low-demand times and higher during holidays and other peak travel dates.
But here's the thing: While IHG did have standard award pricing in the past, it never published an official award chart, so it will be harder to gauge how much dynamic pricing will actually affect the price of IHG award nights. The examples shown above don't vary too much in pricing in most cases, so there's no need to worry about ultra-variable, Hilton-style dynamic pricing just yet.
From our research, there isn't much rhyme or reason to how these stays are being priced. Sometimes stays with lower cash costs actually cost more points than cheaper nights, and despite being in the middle of the global coronavirus outbreak, some close-in stays are pricing at higher levels. This could simply be an error on IHG's part or signs that cash rates don't directly correlate to points pricing.
Related: Coronavirus hotel change and cancellation policies: What to know
Bottom line
From the changes we've seen so far, IHG's move to dynamic pricing doesn't seem too bad. IHG didn't release an official award chart to begin with, and prices only fluctuate within relatively small increments when compared to other hotel programs like Hilton Honors.
Regardless, now might be a good time to book future IHG stays at hotels outside of Greater China to take advantage of standard award pricing. You can always cancel and rebook your award stay if you see that dynamic pricing ends up dropping the cost of your award stay later down the line — just make sure to note the hotel's cancellation policy in advance of your scheduled arrival.
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits.Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
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 $6,000 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.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.