Originally Posted by
MikeFromTokyo
Yes. I have no idea how IHG internal compensation for certificate nights works, but it could indeed be the case that they receive very little in compensation for those nights, thus the larger upsell charge
Certs come out of same pool as award nights and hotel thus gets same remuneration. Award 'nominal pittance' remuneration reported as based on four criteria
i)each IHG Brand has own payment scale
ii)ADR of hotels income prev year, hotels award nights getting low/med/high remittance fee on scale for the brand based on that ADR
iii)Boosted rate if hotel releases 10% rather than 5% of rooms to award pool
iv)Boosted rate remainder of calendar year once hotel reaches/sells set %age years total rooms (ie 365 x rooms at hotel) as award rooms. So hotels with higher/popular redemptions get a boost later in the year.
I believe IC Parklane having 400 roooms releases 10% (not minimum 5%) to award inventory, so then qualifies for the boosted 'ihg award remuneration pitance' though at the top end already, ie i)an IC ii)top category IC.
Saw the IC PL Award fee on my checkout invoice as 175gbp over 2years ago when award here only needed 50k points. That was higher amount than I saw for equally upmarket/good IC Paris LG that same year (from memory 150euro = 125gbp, room rate that night circa 350euro and < 95% occupancy).
I have also seen IC PL get 800gbp/night (paid rate only 635gbp) for one of my award nights when soldout > 95% occupancy (again over 24months ago). At that 95% occupancy trigger, IHG hotel actually gets ADR for occupied award room which is supposedly the average daily rate (adr) of all their sold rooms not just entry level cat room rate, but averaged over all sold rooms ie Entry Cat level through to highest cat ( Royal suite).
nb
I have booked award late in (stayed at) a 25K UK HI Portsmouth, the HI releasing all rooms in last few days to awards pool when hotel selling out, and IHG paid the hotel 235gbp/night instead of the usual 35gbp , and have also seen other award night invoices at normal rates from time to time by mistake
HI LHR T5 receives just 18gbp/night, normal booked nightly rate nominally 95-130gbp ..I remembered that as my evening snack was 15gbp and instead saw bill with the 18gbp room cost instead of my meal cost, and thought I was overcharged on meal, lol