BIG NEWS: IHG Rewards Club launches revenue-based redemptions in Europe and US – and it is MUCH cheaper

Links on Head for Points may pay us an affiliate commission. A list of partners is here.

IHG Rewards Club, the loyalty scheme for Holiday Inn, Crowne Plaza, InterContinental etc, has launched revenue-based redemption pricing in Europe and parts of the USA.

Don’t panic.  In most cases, you are making substantial savings.  I couldn’t find any examples of higher pricing.

This is not for the UK, for now, but it is in parts of Western Europe.  It is also showing in parts of the USA, but not in New York.  This follows a small trial in China over the last couple of months.

If you have any existing IHG Rewards Club redemptions booked, you should check your pricing – you may make a big saving by rebooking.  Do not rebook unless you can see reward nights still available as there is no guarantee that a cancelled night will go back into reward availability.

IHG Rewards Club revenue-based redemptions in action

Let’s head over to Amsterdam for a late October mini-break.

The first sign that something is ‘up’ is when you see pricing like this (click to enlarge):

IHG Rewards Club revenue based redemptions

The reason the numbers are not rounded to the nearest 1,000 is that each night is priced separately and then averaged out.

For example, at Crowne Plaza Amsterdam South:

Previous price: 40,000 points per night

17/10 – 40,000 points (cash rate €243, 0.60 cents per point)

18/10 – 22,500 points (cash rate €190, 0.84 cents per point)

19/10 – 22,500 points (cash rate €220, 0.98 cents per point)

20/10 – 40,000 points (cash rate €279, 0.70 cents per point)

IHG Rewards Club launches revenue-based redemption pricing

At the InterContinental Amstel, using slightly different dates:

Previous price: 60,000 points per night

18/10 – 42,500 points (cash rate €439, 1.03 cents per point)

19/10 – 45,000 points (cash rate €439, 0.98 cents per point)

20/10 – 45,000 points (cash rate €467, 1.03 cents per point)

21/10 – 45,000 points (cash rate €439, 0.98 cents per point)

For clarity, the cash rate I used was the NON-refundable member rate, adding on the 7% service charge.  A refundable rate would have been 5%-10% more expensive.

There is clearly no direct correlation between the cash price and points price.  At the Amstel, we have two nights where the cash price is identical but where the points price varies.  At the Crowne Plaza, a 10% jump in cash rate leads to a virtual doubling of the points price.

What is also clear is that all of the examples above get you FAR more value than my ‘base valuation’ of 0.4p per IHG Rewards Club point.

Let’s move over to Germany, where hotel prices are a lot lower:

Hotel Indigo Berlin Ku’Damm:

Previous price: 25,000 points per night

18/10 – 21/10 – points price is fixed at just 12,500 points per night

Cash price varies from €72 to €117 per night!

The average value over the four nights is 0.83 cents per night

IHG Rewards Club launches revenue-based redemption pricing

Regent Berlin (which used to be a Four Seasons!):

Previous price: 50,000 points per night

18/10 – 35,000 points (cash rate €231, 0.66 cents per point)

19/10 – 35,000 points (cash rate €249, 0.71 cents per point)

20/10 – 32,500 points (cash rate €245, 0.75 cents per point)

21/10 – 32,500 points (cash rate €245, 0.75 cents per point)

In many cases, the price per night is SUBSTANTIALLY lower than it was before.

More promisingly, there are NO examples of prices which breach the previous cap.

Whilst the ‘cash to points’ ratio continues to not make much sense, you are still getting better value than my traditional 0.4p.

Let’s see how this develops, given that it is not (yet?) available for the UK and much of the rest of the world.  Has IHG Rewards Club decided to copy Hilton and make many of their hotels cheaper on off-peak dates, whilst retaining a cap?  It would be very interesting if true.

(Want to earn more hotel points?  Click here to see our complete list of promotions from the major hotel chains or use the ‘Hotel Promos’ link in the menu bar at the top of the page.)

ENDS SUNDAY: Get DOUBLE Hotels.com Rewards credits on stays until 31st August 2021!
easyJet proposes axing 4,500 jobs across Europe

Click here to join the 15,000 people on our email list and receive the latest Avios, miles and points news by 6am.

Amazon ad
EXCLUSIVE HFP READER OFFER FOR SME's!
Get points worth 15,000 Avios as a sign-up bonus!
OFFER ENDS 13th JULY
15,000 Avios with Capital on Tap Mastercard
About Head for Points

We help business and leisure travellers maximise their Avios, frequent flyer miles and hotel loyalty points. Visit every day for three new articles or sign up for our FREE emails via this page or the box to your right.

Comments

  1. Andrew says:

    O/T ish – anyone got the Spire choice benefit yet (the free one for not actually hitting any milestone but with the auto extension due to Covid)?

    • No, I’d already hit Spire so looks like I won’t get an extra bonus 🙁

      • Scallder says:

        +1 🙁

      • Secret Squirrel says:

        Why would they give 2x bonuses if you had not hit spire?

        • Scallder says:

          1 bonus in line with everyone getting it and then the second for those that hit the Spire threshold anyway this year. Not 2 for nothing!

          • Peter K says:

            It would be 2 lots for nothing really. It’s for being spire, it’s just that you hit the target and others were gifted.
            It’s not that you deserve two lots, you have the one lot that you are owed. Rather, it’s that IHG decided to gift it to some who arguably are not deserving of it.

    • Alex W says:

      No, is that a thing? Didn’t think you would get it unless you qualified, noting lower criteria this year (55k points).

      • Andrew says:

        Yes all Spire members as at 1 Jan this year have been extended until end of Dec next year and will get a Choice benefit regardless of any stays.

        • Alex W says:

          Sweet. Wonder if you’d get a 2nd choice benefit for qualifying. Probably not I guess.

        • Julia R says:

          No, I haven’t received, and emailed to ask about it. They keep replying and saying there is no auto choice benefit and you have to earn it. They are unable to comprehend that that is definitely not what their communications have said.

        • Sanders says:

          How do you know this? I haven’t heard anyone get the choice benefit unless they earnt it

        • Sanders says:

          How do you know this? I haven’t heard anyone get the choice benefit unless they earned it

    • Grant says:

      My status has only just been extended to end of 2021. I’m currently on 35k qualifying points for this year. Do you think it is worth staying under the 55k until the choice benefit arrives in the hope that I can trigger it twice?

      • Brian W says:

        My Spire Status has been extended today until 31/12/21 but no sign of the 25k Member Benefit yet.

    • Dave R says:

      Unfortunately not

    • Phillip says:

      I got mine but I have actually hit my Spire target for the year.

      • Secret Squirrel says:

        Is that your first spire bonus of 25k points this year?
        We are expecting 2 x 25k bonuses!

        • Peter K says:

          As put above, you have the one lot you are owed. Others are being gifted it. I don’t see why IHG would have to give you two lots as they have given you what you deserve/have earned.

          I say this as someone who’s wife should hit the target for spire in the next month or two. I only expect her to get one.

          • Sanders says:

            There is no double bonus but people haven’t received the bonus this year unless they met the target

    • Sanders says:

      No looks like nobody has it despite Rob saying we would

      • TGLoyalty says:

        *Despite IHG saying we would.

      • To be precise, the IHG press release (which I think was repeated on the website) says you will. It also says it will take time for them to sort it out for everyone.

    • Luckyjim says:

      The renewal target has been lowered to zero. Everybody benefits. There is no second bonus for meeting the old threshold.

  2. Michael Jennings says:

    I just booked the Prague Congress Centre Holiday Inn for only 10,000 points a night. I’ve stayed there before. Nice but suburban location close to the river, but Ubers or similar are cheap. Pretty nice hotel. Cost 20,000 points last time. 115 euros a night for the dates I want. That is a good deal.

    • Michael Jennings says:

      Actually, I lie. It was 15,000 points last time. Still a good deal though.

    • Harry T says:

      Thanks, booked it for next Easter for 10k points a night.

  3. Michael says:

    Has anyone stayed in any of the Kimptons in Portland? I’m looking at the Vintage or Monaco for a couple of night next May. As an aside what are Kimpton normally like at recognising status? I’m Spire.

    • Alex W says:

      Stayed at one in Seattle. I remember being miffed at lack of benefits and getting whacked with ludicrous resort fees.

      • Jonathan says:

        I like Kimptons in the US, much better than Intercon’s if you’re on holiday. The resort fees are annoying (but they’re common across most brands in the US these days). They have their own invitation only loyalty scheme but you should get a free drink or minibar credit as an IHG Platinum or higher.

    • chris says:

      Monaco stayed a few one nights found it a nice comfortable hotel; last stay 2 years ago.Public spaces are perhaps a busy, but bar was good. Most always upgraded as spire. (cant remember not being) but its a bit like an IC where there are a lot of room classes.

      Received complimentary snacks / water a full bottle of wine in room each time. It’s pretty central; the tram alike thing is just outside the door. As short stays I’m not generally looking for gyms etc…

      It’s a boutique style so a bit over designed. I have a foam pillow on my IHG account so was put on an allergy free floor which was new one for me (https://flic.kr/p/26y1Q6N)

      Minibar credit for spire last time I stayed was nice touch too

    • Reney says:

      I stayed at the Monaco about 3 year ago, I didn’t book direct so can’t comment on status. Had to read my trip.advisor review to remember… I liked the location. Room wasn’t particularly big, and I had no view. It is very stylishly decorated which is a bit too much for say my home but a nice change of scene on long trips in hotels.There was a social.hour with live music. I liked it and would stay again. I have stayed at at least two kimptons in the US and I really liked them, if they are in my price range I would always check out the reviews to see if it is worth staying…

    • I stayed in the Monaco in 2018. I managed to book with points just as they were added for redemption and got a suite for the same price as a standard room. The suite was great and a good location for us I recall.

  4. Mark M says:

    Just found some CRAZY points vs. cash pricing for Duseldorf centre:
    IC: £188 / Indigo £394 / Holiday Inn £677
    No I have NOT got them the wrong way round!!
    They are all 30k points ish – 28214 to be exact for the Indigo.
    These are for early May 21, so unlikely to be fully booked.
    Is the IC really such a dump, or the HI so extraordinary !?

  5. Super Secret Stuff says:

    Finally some good news! This certainly makes IHG Rewards more appealing and I may even go so far as to forgive them for rubbish IT!

    I do worry thoy that once they recover from corona they’ll start putting rates up.

  6. Craig says:

    Brilliant, just booked CP JFK for half the normal points.

    • Genius! You just reminded me I need a room at JFK next Easter before an early flight to the Caribbean. 20k points v $250 cash. To think I had toyed with the idea of using a free night certificate here 😱

      • Craig says:

        From the reviews 40k points or a certificate looked expensive, 20k looks much more reasonable. In fact Mrs S’s first year IHG card looks even more valuable now, two nights here either side of a spin to the Caribbean and a free night certificate, some real value to be had.

  7. Andrew says:

    O/T – but related, as I might cancel and rebook. Melia hotel booked with points – are they fully refundable in points once a stay is cancelled and do the points expire? (I did the Melia buy points offer last year and booked for September at Grand Melia Rome, so I’m new to Melia).

    • That depends on the tarif you booked. Melia has both refundable and non-refundable bookings with points. You need to check your confirmation.

      I had a booking for Granada in April on points and although the hotel was closed, they only offered me to change my booking to a later date (yet to be determined when – its an “open” booking).

      • Andrew says:

        Thanks, seems to say cancel outside 24 hours to avoid a 1 night penalty.

        • flyoff says:

          I cancelled and received all the points back as my booking stated cancellable up to 24 hours before. Once cancelled the expiry date reverted back to the original expiry date of all the points. I have now booked a hotel next year and the expiry date has been extended to one year after my next planned stay.

  8. Optimus Prime says:

    Rob, do you think the free night certificate might be capped at a certain number of points like in the US once dynamic pricing is fully rolled out and we’re in proper peak season (post covid19 obviously)?

    • Doug M says:

      On a related subject I had to finally admit defeat and cancel a room in Boston yesterday. The Free Night voucher reappeared extended until 31/12/20.

    • As the Premium card is no longer available, you could argue either way …

  9. It will be interesting to see if PointBreaks reappears in an effort to encourage bookings.

  10. Sanders says:

    Has anyone else had problems with the app timing out/logging out for weeks now?

  11. Rossy says:

    Based on this then are you saying that a (conservative) new valuation of 1x IHG point is worth 0.5-0.6p based on current exchange rates?

    • Genghis says:

      Not when you can buy for much less!

      • You should only value something at what it would cost to replace it, and IHG is still (today) selling you points at 0.4p each as the 100% bonus offer is running.

        • Craig W says:

          I don’t think I understand this argument. Surely an IHG point is worth the amount I am saving by redeeming the point rather than paying cash for the room? I know you both think differently but I can’t see why

          • Genghis says:

            Let’s look at one example and assume you can buy avios at 1p and you usually redeem at 1.5p.

            There are multiple ways to get avios, Tesco clubcard being one of them.

            You can get say 2.6p of actual value if you redeem clubcard points for hotels.com or say 3p of value if you redeem for Tesco delivery saver. You’re giving up that 1cc point for 2.4 avios, which if you valued at what you could redeem them for, then you’d be getting 2.4 x 1.5p of value = 3.6p / cc. But you can replace that 2.4 avios by paying cash of 2.4p. So really you’re better off using for other redemptions. It makes valuing points at what you redeem them at futile. It’s replacement cost which you should value at and use as the benchmark for your analysis.

          • Look at it this way. You say I should value an IHG point at 0.6p now. However, if I offered you £5 or 100 points, you would take the £5 because IHG will sell you 100 points for £4 and you can pocket the difference.

            Put another way: 1 Virgin mile = 1.5 Hilton (0.48p on my valuation) or 1 IHG. I would still take the Hilton points, even if I though I’d get 0.6p for the IHG point, because I can buy that IHG point for 0.4p.

          • Craig W says:

            Extremely helpful and interesting – thanks very much!

Please click here to read our data protection policy before submitting your comment.