2019 points calculation bug?
#1
FlyerTalk Evangelist
Original Poster
Join Date: Feb 1999
Location: Seat 1A, Juice pretty much everywhere, Mucci des Coins Exotiques
Posts: 34,339
2019 points calculation bug?
I noticed on my two stays this year so far, which were in Europe, that I got a bit less than expected in points. From what I can tell, IHG is calculating my points based on my Euro spend, but not converting that into USD. On the website when I click on the "earnings details" section, it is correct showing both the Euro spend and the USD conversion. But the points earnings are 10 x the Euro amount rather than 10 x the USD amount. I mentioned this to customer support. At first they didn't get my point at all, but I pushed and they said they would report this issue. Anyone else seeing this?
#2
Suspended
Join Date: Jul 2007
Posts: 4,477
Tax issue maybe? I notice in British Sterling, the points are calculated based on ex-tax rate now. In 2017 the points were calculated based on the price quoted (as in UK the price includes all VAT), and last month I notice my stay is calculated based on price minus 20% VAT. Maybe your EU hotel has VAT inclusive and the points are awarded based on ex-VAT/GST rate?
#3
FlyerTalk Evangelist
Original Poster
Join Date: Feb 1999
Location: Seat 1A, Juice pretty much everywhere, Mucci des Coins Exotiques
Posts: 34,339
Tax issue maybe? I notice in British Sterling, the points are calculated based on ex-tax rate now. In 2017 the points were calculated based on the price quoted (as in UK the price includes all VAT), and last month I notice my stay is calculated based on price minus 20% VAT. Maybe your EU hotel has VAT inclusive and the points are awarded based on ex-VAT/GST rate?
#4
Suspended
Join Date: Jul 2007
Posts: 4,477
Room: Amount Ł58.33 (USD$74.40)
Beverage: Amount Ł3.92 (USD$5.00)
Total Spending: Ł74.70 (USD$95.27)*
Total Qualified Spending: Ł79.40 (USD$101.27)**
Base Points: 794
You can see the Base Point I end up getting is 794, which is the room + beverage total in USD spending. However, the Total Qualified Spending does not make any sense and seems to be wrong.
* The Total Spending is inclusive of VAT where as the Room and Beverage column is ex-VAT
**The Total Qualified Spending did not make sense at all. My conclusion is that the Total Spending is based on Room Only with tax included. The Total Qualified Spending is Room and Beverage total inclusive of tax but in USD with a currency mark of British pounds. I am guessing that is the problem you are facing, no?
Then there is a second example, also stay is in UK in December.
Room: Amount Ł65.83 (USD$83.96)
Total Spending: Amount Ł79.00 (USD$100.76)
Total Qualified Spending: Amount Ł83.96 (USD$107.09)
Base Point: 840
From the second example you can see the base point is correct based on room rate excluding VAT. The Total Spending is correct too with VAT. However, the Total Qualified Spending did not make any sense at all. However, it is the same amount in USD terms of the Room charge, but with the Ł currency input. I guess this is the problem you are referring to?
So my conclusion is that as long as the base points are calculated correctly, I think I don't worry about the total qualified spending. It is obviously a bug in system. And I hope IHG could sort that out following OP's conversation with the guest service department.
#5
Join Date: Feb 2009
Location: Netherlands
Programs: SQ S, IHG Diamond/Amb, Accor S
Posts: 703
I noticed on my two stays this year so far, which were in Europe, that I got a bit less than expected in points. From what I can tell, IHG is calculating my points based on my Euro spend, but not converting that into USD. On the website when I click on the "earnings details" section, it is correct showing both the Euro spend and the USD conversion. But the points earnings are 10 x the Euro amount rather than 10 x the USD amount. I mentioned this to customer support. At first they didn't get my point at all, but I pushed and they said they would report this issue. Anyone else seeing this?
Example:
#6
Join Date: Dec 2017
Posts: 1,107
#7
Join Date: Feb 2007
Location: PacNW (SEA)
Programs: AS, IHG and post-loyal
Posts: 523
Send a help message to IHG. I had this issue as well on Euro stays. You might need a few tries to get an agent that understands the request and corrects the error.
Funny it doesn't work in reverse for currencies worth less than the USD
Funny it doesn't work in reverse for currencies worth less than the USD
#8
Join Date: Oct 2016
Posts: 182
This has happened to me several times in the past. In all cases I have reached out to the ambassador customer service team and they have made a correction. The number of points is based on the total qualified spending in Euro rather then USD. Whether the total qualified spending in Euro reflects the real amount is something you have to calculate yourself. In many cases it was too low. What makes it difficult is that in all cases there was no itemized spending in the individual categories. (...)
Was this a points stay in Germany and you spent 130,59 EUR in F&B?
For example:
Berlin 39/12/2018 - 31/12/2018 Number of Nights: 2
Total earned: 7,476
Base Points: 3,738
Elite Bonus Points: 3,738
Total Spending
351.73 (USD $399.94)
Total Qualified Spending
373.78(USD $425.02)
Total earned: 7,476
Base Points: 3,738
Elite Bonus Points: 3,738
Total Spending
351.73 (USD $399.94)
Total Qualified Spending
373.78
The line above matches correctly what I spent in EUR including 7% VAT.
#9
Join Date: Sep 2012
Location: NW London and NW Sydney
Programs: BA Diamond, Hilton Bronze, A3 Diamond, IHG *G
Posts: 6,344
However for my own stays I can never get the tax-related numbers to add up. Out of my UK stays last year, I sometimes earned points on the full amount including VAT, sometimes not, and sometimes it only makes sense if I assume that UK VAT is between 5-15%. I've never received fewer points than I should have (although sometimes the exchange rate used is several percent worse than it should be).
#10
Join Date: Feb 2009
Location: Netherlands
Programs: SQ S, IHG Diamond/Amb, Accor S
Posts: 703
No, this has got nothing to do with VAT. The VAT amounts are stated clearly on the invoice. This was a paid stay and the 122 Euro was approximately my net spend. By the way the column header clearly says Amount EUR (USD). Furthermore it is weird that all spending catagories are 0, which makes it hard to verify the correctness of the earned points. Oh - and your calculation is wrong: 19% VAT on EUR 105,66 would be EUR 20,07...
Last edited by DuMaInSin; Jan 9, 2019 at 10:02 am
#11
Join Date: Feb 2009
Location: Netherlands
Programs: SQ S, IHG Diamond/Amb, Accor S
Posts: 703
That seems to be the case indeed, although the header suggests that the amount is in EUR. And it definitely used to be different in the past, when the individual categories would also be populated so that you could easily verify which spending was qualified and which wasn't.