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Old May 30, 2015, 7:39 am
  #61  
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Originally Posted by chrism20
Taking the large cities out of the equation rates elsewhere are much lower and it would take your average joe with no CC etc much longer to achieve the 75k.
Taking large cities out of the equation? That's where IHG hotels are concentrated. Yes the UK is an aberration as they have a huge number of HI's and HIX's all over. But take France as an example. 90% of the HI's are in Paris. Your average joe in Europe is spending way more than 85 pounds/euros per night.

But like I said, the US and China have a huge number of cheap hotels and maybe that's what IHG are targeting. You can tell by the way the promos are set up that it's mostly for the US market. And it's clear that IHG has spent a lot in China.
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Old May 30, 2015, 8:09 am
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Originally Posted by stimpy
Taking large cities out of the equation? That's where IHG hotels are concentrated. Yes the UK is an aberration as they have a huge number of HI's and HIX's all over. But take France as an example. 90% of the HI's are in Paris. Your average joe in Europe is spending way more than 85 pounds/euros per night.

But like I said, the US and China have a huge number of cheap hotels and maybe that's what IHG are targeting. You can tell by the way the promos are set up that it's mostly for the US market. And it's clear that IHG has spent a lot in China.
Yes a huge inward investment in China and still continuing. Properties there (especially IC's) are significantly cheaper and frankly better (in the main) value and content wise if not always service in the purest sense.

It is a bit difficult to work out the target or strategy but there does always seem to be a skew US and Asia wise.
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Old May 30, 2015, 8:22 am
  #63  
 
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Originally Posted by NJUPINTHEAIR
Can't agree with this as Marriott is a huge behemoth here in the USA, as is Hilton worldwide, and they both provide their mid-tier and upper level elite members complimentary breakfast.

If IHG wants to get into the game and truly give these guys their run for the $$, then this is an inexpensive way to do it.

Further, most Marriott properties are franchisees and it still works for them and most all new HHonors properties are modeled on this, as well -- as all the hotel companies have switched to what is known as an "asset light" strategy where they are now in the business of providing management for hotel properties, rather than owning them outright.

Finally, I would think that most hotel owners/franchisees would welcome this strategy if it fills more rooms for them and introduces the general public to the serious overhaul that IHG has undertaken in recent years.

Many of the posters in this forum regularly stay at Intercontinental properties, but the Holiday Inn brand (excepting HIXs which are new builds) is still a somewhat toxic name here in the USA.

What better way to draw in both road warriors and leisure travelers but with a complimentary breakfast -- value for $$. After all, the prices that IHG properties now charge at least stateside are virtually contemporaneous with that of Marriott and Hilton family properties -- i.e., they are not exactly the cheap rates of yesteryear -- that is the domain of Choice and Wyndham brands where many de-listed former IHG properties were dumped. @:-)
Think Chris is right about the revenue stream from F&B...know a few folks inside and they would certainly confirm. However impression I got was that the free breakfast might be a counter to people (plats and the like) whinging for FOC club lounge.

I got my CL on those recent stays but I got impression only because fairly regular and do high nights.

I think you might see a push back on CL access in favor of free breaky. I also get impression it will be a barter chip......and then that really would be a differentiator for the new tier....lounge and breakfast for high nights top tier foot soldiers....It would raise a smile with me for sure.

Can you imagine saving that haggle factor? At IC's I don't think I've ever had to haggle for lounge and/or breakfast or ever pay for it but at CP's it needs a gentle nudge and although usually works it's not a given.
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Old May 30, 2015, 11:30 am
  #64  
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Originally Posted by Atacama40
Think Chris is right about the revenue stream from F&B...know a few folks inside and they would certainly confirm. However impression I got was that the free breakfast might be a counter to people (plats and the like) whinging for FOC club lounge.

I got my CL on those recent stays but I got impression only because fairly regular and do high nights.

I think you might see a push back on CL access in favor of free breaky. I also get impression it will be a barter chip......and then that really would be a differentiator for the new tier....lounge and breakfast for high nights top tier foot soldiers....It would raise a smile with me for sure.

Can you imagine saving that haggle factor? At IC's I don't think I've ever had to haggle for lounge and/or breakfast or ever pay for it but at CP's it needs a gentle nudge and although usually works it's not a given.

Well Marriott does guarantee lounge access, but Hilton no longer does for Gold mid-tier members and I think that most IHG Plats would be more than happy getting the comp breakfast inasmuch as some did receive this before IHG "standardized" certain hotel benefits/perks. Whether this would be sufficient for the new tier and what it would take to obtain vs. the competition, I would need to know more. However, as a Platinum member I certainly would be happy with a comp breakfast.
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Old May 30, 2015, 4:12 pm
  #65  
 
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Originally Posted by NJUPINTHEAIR
Can't agree with this as Marriott is a huge behemoth here in the USA, as is Hilton worldwide, and they both provide their mid-tier and upper level elite members complimentary breakfast.

If IHG wants to get into the game and truly give these guys their run for the $$, then this is an inexpensive way to do it.

Further, most Marriott properties are franchisees and it still works for them and most all new HHonors properties are modeled on this, as well -- as all the hotel companies have switched to what is known as an "asset light" strategy where they are now in the business of providing management for hotel properties, rather than owning them outright.

Finally, I would think that most hotel owners/franchisees would welcome this strategy if it fills more rooms for them and introduces the general public to the serious overhaul that IHG has undertaken in recent years.

Many of the posters in this forum regularly stay at Intercontinental properties, but the Holiday Inn brand (excepting HIXs which are new builds) is still a somewhat toxic name here in the USA.

What better way to draw in both road warriors and leisure travelers but with a complimentary breakfast -- value for $$. After all, the prices that IHG properties now charge at least stateside are virtually contemporaneous with that of Marriott and Hilton family properties -- i.e., they are not exactly the cheap rates of yesteryear -- that is the domain of Choice and Wyndham brands where many de-listed former IHG properties were dumped. @:-)
I don't disagree with much of what you have written to be honest. Personally if IHG do go down this route I would be very happy.

Whilst many properties (Notably the better ones) will embrace the change and see it as an opportunity to take the fight to Hilton & Marriott and ultimately gain market share there are plenty of GMs and owners who will see it as a problem.

As an example a property I stayed at earlier this week with just under 350 rooms had a total of 216 covers booked in for breakfast on the manifest at the restaurant entrance. Breakfast here is £15.95 per day (or £25 for two when booking online). If say 20% of those get free breakfast that is £530 of income gone. Repeat that for everyday of the year it's £193,000 a year.

Hilton & Marriott have made it work for them so hopefully IHG (If they go down that route) can also make it work but they all need to buy into it from the start.

Originally Posted by stimpy
Taking large cities out of the equation? That's where IHG hotels are concentrated. Yes the UK is an aberration as they have a huge number of HI's and HIX's all over. But take France as an example. 90% of the HI's are in Paris. Your average joe in Europe is spending way more than 85 pounds/euros per night.

But like I said, the US and China have a huge number of cheap hotels and maybe that's what IHG are targeting. You can tell by the way the promos are set up that it's mostly for the US market. And it's clear that IHG has spent a lot in China.
Apologies what I meant to say was large capital cities. London, Paris, New York etc are always going to be very busy and command higher rates due to the huge mix of tourism and business.

A quick look at rates for Monday in Madrid, Lisbon, Warsaw, Rome, Milan, Barcelona, Berlin, Dusseldorf, Frankfurt, Manchester, Birmingham, Liverpool, Belfast and Dublin are showing average rates for most cities of around €125 per night which at todays exchange rate is £89.14 - Whilst it's only one day and the next days average could be double that maybe IHG have got their sums right on this one.

Again apologies for the omission of the word capital.

Originally Posted by Atacama40
Think Chris is right about the revenue stream from F&B...know a few folks inside and they would certainly confirm. However impression I got was that the free breakfast might be a counter to people (plats and the like) whinging for FOC club lounge.

Can you imagine saving that haggle factor? At IC's I don't think I've ever had to haggle for lounge and/or breakfast or ever pay for it but at CP's it needs a gentle nudge and although usually works it's not a given.
It's a huge revenue stream. In some of the big properties F&B will be generating up to £100k a week in sales.

I do think there needs to be a clear policy in place and hopefully after the changes this will be implemented. Hilton have it right, Diamonds get lounge access, gold get it if upgraded to the Exec floor and so on. If they are going to go with free breakfast I would say they need to do it across the board rather than you pick one or the other as there will always be some that chance it and try and get both.

Last edited by chrism20; May 30, 2015 at 4:31 pm
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Old May 31, 2015, 3:01 am
  #66  
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One thing to consider with the free breakfast, it can be marketing for F&B too. If the guests likes the free breakfast they get, perhaps they will try the same restaurant for lunch or dinner.
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Old May 31, 2015, 4:06 am
  #67  
 
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Originally Posted by stimpy
One thing to consider with the free breakfast, it can be marketing for F&B too. If the guests likes the free breakfast they get, perhaps they will try the same restaurant for lunch or dinner.
Thats definitely the idea behind it. If they do it right it will encourage people to use the money saved on breakfast for dinner/drinks/room service that may have been spent elsewhere which generates more income and offsets the breakfast costs.

On the topic of reaching the new status level my stay from the start of the week posted and I have 74,992 EQPs for the year so once Thursday's stay posts on Tuesday that's me there.

Last edited by chrism20; May 31, 2015 at 4:17 am
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Old May 31, 2015, 5:20 am
  #68  
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I have a bad feeling that this will be all we get with the new tier:

Achieve our highest membership level with 75 nights or 75,000 points and enjoy the view from the top

- Enjoy 100% bonus points on top of your base points
- Receive 25,000 annual points bonus
or
- Gift Platinum to a friend or family member
That's what it states on the IHG site. I believe that's all it will be.
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Old May 31, 2015, 5:29 am
  #69  
 
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Originally Posted by rumbataz
I have a bad feeling that this will be all we get with the new tier:



That's what it states on the IHG site. I believe that's all it will be.
I think that will be it on July 1st. IHGSteve did say on one of his posts in the IHG Change thread that further enhancements will be announced on July 1st and will take effect from January 1st.

So yes you are correct that will be it initially I think.

Makes you wonder why they didn't just announce everything on July 1st for a January 1st start rather than meddle with it mid-year, although by announcing all that they probably managed to cool the backlash from the devaluation as we were all too busy focussing on what the new level would entail and the introduction of expiring points.
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Old May 31, 2015, 6:23 am
  #70  
 
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Originally Posted by stimpy
One thing to consider with the free breakfast, it can be marketing for F&B too. If the guests likes the free breakfast they get, perhaps they will try the same restaurant for lunch or dinner.
Is true, whilst all day diners can be much scoffed at, have to confess I did exactly that at KL IC last week.....good breakfast turned into seafood buffet for two with wine the next evening.

Great value in KL but nevertheless a significant percentage increase that most likely would not have occurred without tasting their chicken Rendang and Roti Canai for breakfast!

Come to think of it, did same in HKG IC earlier year, they do a great buffet in the Harbourside, think is maybe HK$ 800 ish.....was driven by a good breakfast experience.

And Warsaw few weeks back....super breakfast and went Platter in the evening which was superb. Strange I never think I use in-house dining but without even thinking about it I've proved that wrong....and joking aside those three (of the top of head without evening thinking) add up to a tidy sum. Think you have a point.
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Old May 31, 2015, 7:50 am
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Originally Posted by chrism20
Originally Posted by rumbataz
I have a bad feeling that this will be all we get with the new tier:



That's what it states on the IHG site. I believe that's all it will be.
I think that will be it on July 1st. IHGSteve did say on one of his posts in the IHG Change thread that further enhancements will be announced on July 1st and will take effect from January 1st.

So yes you are correct that will be it initially I think.

Makes you wonder why they didn't just announce everything on July 1st for a January 1st start rather than meddle with it mid-year, although by announcing all that they probably managed to cool the backlash from the devaluation as we were all too busy focussing on what the new level would entail and the introduction of expiring points.
Since IHG club major competitors offer some kind of free breakfast option starting January 1 next year they will probably offer 2 breakfast for the new tier. Hopefully they start a fourth tier that includes free Ambassador membership and confirmable suite upgrades at time of booking if they cannot include them in this new tier.
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Old May 31, 2015, 8:18 am
  #72  
 
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Originally Posted by HHonors OUTSIDER
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Since IHG club major competitors offer some kind of free breakfast option starting January 1 next year they will probably offer 2 breakfast for the new tier. Hopefully they start a fourth tier that includes free Ambassador membership and confirmable suite upgrades at time of booking if they cannot include them in this new tier.
With an improving economy I don't think there is much chance of AMB becoming free or being done away with anytime soon.

It's survived one of the biggest ever periods of economic distress and they haven't made it free which I think is really big indicator that AMB works well for IHG.

And besides given the rates at ICs $200/32k points is really good for what you get.
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Old May 31, 2015, 11:45 am
  #73  
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I don't see the big deal with free breakfast. I tend to take breakfast when I get it free at Starwood or Hilton but it really isn't a make or break thing for me. What is a big deal is uncertainty about room upgrades and club access.
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Old May 31, 2015, 12:05 pm
  #74  
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Originally Posted by Land-of-Miles
I don't see the big deal with free breakfast. I tend to take breakfast when I get it free at Starwood or Hilton but it really isn't a make or break thing for me. What is a big deal is uncertainty about room upgrades and club access.
It depends on the property. Here is an extreme, true, example.

We do 20 nights a year at a Jumeirah resort in Dubai. Breakfast for a family of 4 would be over £100 per day and it is unrealistic to leave the resort for it. We are always on reward stays so no chance of bundling into the rate.

That is £2,000 of annual breakfast spend. Being able to wipe that out via status is a major benefit.

Here is the quirk. Silver status with Jumeirah requires only £3,000 of spend. It is a no brainer to spend £3,000 in order to get £2,000 of benefits.
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Old May 31, 2015, 2:15 pm
  #75  
 
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Originally Posted by Land-of-Miles
I don't see the big deal with free breakfast. I tend to take breakfast when I get it free at Starwood or Hilton but it really isn't a make or break thing for me. What is a big deal is uncertainty about room upgrades and club access.
Exactly as Raffles says....breakfast no big deal on the one hand but just had the daughter stay with two friends at ICDFC in Dubai and they very kindly comp'ed them......from memory breakfast as Ainise is about £23.00 odd a head....best part of £75 saved.....no small beer, to me anyway. .... in fact 50% on top of the booked room cost, per day.

Last edited by Atacama40; May 31, 2015 at 4:08 pm Reason: clarification
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