IHG Massively Devalues Points (Pricing Reverted To Lower Levels)

Update 4/8/21: Seems pricing as reverted to the old lower pricing at most if not all properties. Something similar happened when IHG first announced the variable point pricing model as well. Let’s hope the lower pricing remains. Hat tip to abhirupduttamit

Update 4/5/21: IHG have provided this update:

We rolled out our Dynamic Pricing models to our hotels around the world last year which enabled the amount of points required for IHG Rewards members to redeem a Reward Night to flex up and down, just like cash rates.

Previously, Reward Night point amounts were static throughout the year. This model allows point amounts to decrease when demand is lower, providing greater value to our members.

Conversely, redemption amounts may also increase based on demand  and other factors and can update as often as daily. Reward Nights are not defined by categories or with minimum and maximum point amounts.

Under our new model, the number of points required for Reward Nights will vary with demand and seasonality.

Original post: Unfortunately it looks like IHG has devalued points by as much as 30%. IHG introduced dynamic point pricing worldwide in 2020.IHG indicated that the cost of award nights would be tied to the cash price of a property so far we haven’t seen properties cost significantly more (most likely due to the low cost of paid nights due to the COVID-19 pandemic). That seems to have now changed and properties are costing significantly more than they were, it seems that often points are worth less than 0.4¢ of the list price. As we exit the pandemic, expect a lot more of these devaluations to come.

Hat tip to Loyalty Lobby

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Raylan
Raylan (@guest_1173922)
April 9, 2021 08:45

Prices aren’t insane any more but they are still higher than they were on 4/1 for a large number of properties. Kimpton Nine Zero in Boston, for instance, is 10-15k per night higher than pre-deval and, more importantly, can’t be booked with a 40k FNC.

CJ
CJ (@guest_1173906)
April 9, 2021 07:17

I booked the Kimpton Muse two weeks ago for 40K points. Yesterday it jumped to 63K. Granted, it’s been two weeks, but I also booked several months in advance.

Baz
Baz (@guest_1173880)
April 9, 2021 01:41

I re-rebooked and got back 20k points.

Need to rebook one more hotel and will be like it never happened, but clearly all rates massively higher.

I think i managed the rebookings well but i am flexible. All intercontinentals

Tonei Glavinic
Tonei Glavinic (@guest_1173876)
April 9, 2021 01:17

A hotel I booked last week for 18k points per night is now showing 25,200 points per night for the same dates. Cash rates don’t seem to have changed much.

Mike B
Mike B (@guest_1173872)
April 9, 2021 00:55

After the news broke yesterday, I made some reservations for HIE hotels in New Mexico and Colorado for a road trip late this month. point prices didn’t seem too bad. I checked them again after reading the announcement of the seeming rollback, and two of three hotels were actually priced higher than last night! One had dropped significantly, and I cancelled and rebooked at the lower rate. A savings of 6000 points in two nights, so nothing legendary. Anyway, based on my sample of three low-cost hotels, prices have jumped around a bit, but I certainly couldn’t say they’ve decreased overall since last night!

Tom
Tom (@guest_1173860)
April 9, 2021 00:04

They did not rollback the latest release.
They just fixed it up a bit so the crazy daily variations are not that drastic anymore.
The overall increased rates are still there.

Seeni
Seeni (@guest_1173911)
April 9, 2021 07:39

yes, points remain same (inflated numbers) for the hotel I am looking to book for last 1 week. No +ve change, RIP IHG.

Sexy_kitten7
Sexy_kitten7 (@guest_1173833)
April 8, 2021 22:59

I still see some mildly high prices. In fact, many summer dates have no awards whatsoever (they’ll take cash though). Interestingly enough, I was perusing the site earlier today and since then, one room shot up from 27k up to 49k! The adjacent date are still 60k. One DP does not make a rule but this suggests that IHG is now super dynamic, much more so than even airline tickets! This is potentially good for FN. If you can monitor rates, you can essentially wait for upgrade space to open and grab it! ATM I’m checking my PNRs for space twice daily so this is only a few more clicks.

Steve L.
Steve L. (@guest_1173938)
April 9, 2021 10:07

FN?…PNR’s?

Deb
Deb (@guest_1173830)
April 8, 2021 22:55

At the handful of properties I’ve been following, I’m still seeing the higher pricing.

Nate
Nate (@guest_1173823)
April 8, 2021 22:29

I don’t see it. Same higher prices.

All French Polynesia properties ringing in at the higher prices.

VL
VL (@guest_1174103)
April 9, 2021 16:17

Yep, same thing. Actually Intercontinental in Tahiti went down now from 68K to 66K (and it was previously 50K)… so it did went down, but negligently 🙂

chicken_po_boy
chicken_po_boy (@guest_1173223)
April 8, 2021 00:50

I’m trying to figure out if this a good deal? Right now IHG is offering an 80% bonus when you buy points. I could buy 150,000 points and get another 120,000 points bonus for $1500. If I put it on the IHG card I will get another 1x for 1500 points. Stacked with 2% cash back from Swagbucks… this is $1470 for 271,500 points, or $0.00541 per point.

Burton
Burton (@guest_1173440)
April 8, 2021 12:11

Don’t do this unless you have an immediate redemption plan. Some properties are less than $.004 and others are closer to $.01. If the property you are looking at is great than $.0055 and you can book now then yes it could be a good value but don’t do it and sit on them losing time value of your money and possibly be stuck with a redemption value below your cost.

Scotty
Scotty (@guest_1173810)
April 8, 2021 22:05

Please don’t do this. If you have an immediate redemption that you won’t have to reschedule you could but I would highly recommend against it. If you do at least don’t use the ihg card, use a 2% or 1.5% card.

Kurt
Kurt (@guest_1173877)
April 9, 2021 01:21

They will regularly offer 100% bonuses to get you down to 0.5 cents a point. Wait until that happens if you want to buy any points.