FlyerTalk Forums - View Single Post - Reward Nights are Changing from 18 January 2012
Old Jan 5, 2012, 10:59 am
  #98  
FlyerTalker688786
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Join Date: Jul 2007
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Some points I would like to make

Please allow me to extend my appreciation for those who visited my website and supported the full list of 10K/25K hotels. Here I have some points I felt I should make

1>, no suprising about the new redemption tiers

From 2010 when I first published the lists for the convenience of all PC members, I forecasted that IC will have the new redemption level of 50K, and Crowne Plaza may have a redmeption level of 30K. The first thing happened but the second point failed as IHG decided 30K was too few for Crowne Plaza Times Sqaure alike.

2>, 20K Holiday Inn may not be too bad

When I did the list, I actually manually checked hotels one by one. So I often encounter some hotels, which is at 25K level but have a very very cheap daily rate whereas some 15K hotels have a higher daily rate. It did not make sense for me. For example, one HI I checked at the 25K level have an average ADV rate of USD$109 where one HI at 15K level in another state but nearby had an average rate of USD$149. I found it very difficult to explain the situation even by the law of supply and demand. I felt that some hotels being put in 25K level simply because of the marketiers from IHG felt 15K being too cheap for those hotels. A new tier under 25K at 20K may solve the problem. It is not that bad at all to see some 25K to 20K. But it would be bad if your favourite hotel go from 15K to 20K.

3>, Hong Kong/New York/Washington DC/Paris/Sydney will become the most expensive areas in terms of points redemption

No need to explain...

4>, UK/Canada/California/Texas may see some moderate reduce in terms of point redemption

Personally I felt that it is crazy to redeem one HI/HIX for 25K when the hotel have an average room rate below USD$90. I think we may finally see some reduction in regions like UK.

5>, The new redemption tier will create a fairer redemption opportunity by linking ADR and demand into the redemption rate

I guess the tier of redemtption will reflect the daily rate and popularity of the hotel. So far I personally feel that the increase is fair to a degree. This means the average Crowne Plaza will require 30K but have 25K bargains around. And IC will have average requirement of 40K but 30K bargains around. I hope the average Crowne Plaza could meet the standard of the lower IC.

6>, A larger reshuffle in redemption tiers may happen in Q2

Even though officially the new tiers come in after 18th January. But I think IHG will keep majority hotels at the current level and move a large number of them after March and June. So I felt that there is no need to publish a new list immidiately. What I will do is to keep the old list online until middle of May and, if IHG do not publish official list, I will check hotels one by one and publish the new list in middle of June.

7>, A major revamp may be on its way

Something more will happen. I sense that the new CEO will do something to mark his power and name. I kind of sense the timeline will be linked to London Olympics. So I would expect more to come after the Games.

8>, Final of the Pointsbreak?

Everybody is asking this question. And nobody has the answer rather than IHG. But one thing I am sure, change is on its way.

9>, Point devaluation?

I do not think so at this moment. This is only operational changes...well, inflationary changes. I would consider a massive point devaluation if the average redemption point requirement raised by 40-50%. So we have to wait and see.
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