Does IHG Corporate or each individual franchise set award prices?

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Old Dec 17, 17, 11:32 am
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Question Does IHG Corporate or each individual franchise set award prices?

Does IHG Corporate or each individual franchise set award prices?
Also when the award redemption rates change, it is dictated by corporate or the franchise?
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Old Dec 17, 17, 2:42 pm
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Corporate, based on ADRs and some other internal criteria.
Points cost does not influence hotel reimbursement for consumed reward nights.
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Old Dec 18, 17, 2:00 am
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Originally Posted by soitgoes View Post
Points cost does not influence hotel reimbursement for consumed reward nights.
Yeah, I've seen cases where I used more points but hotel gets paid less. Very strange IMHO.
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Old Dec 18, 17, 2:06 am
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It should be fairly obvious, shouldn't it?

If hotel could freely choose, they might prefer 10,000 points per night - lots of award nights and IHG corporate is paying. A different, low occupancy hotel might prefer 60,000 points per night, so that nobody ever bothers with points and just pays cash (that the hotel receives).

That said, I do understand that individual hotels have a bit more say whether they participate in Point Breaks...
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Old Dec 18, 17, 7:03 am
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Originally Posted by hightide View Post
Does IHG Corporate or each individual franchise set award prices?
Also when the award redemption rates change, it is dictated by corporate or the franchise?
IHG Corporate decides the award night points needed per each hotel, and re-evaluates periodically.

Some nnK points v $$$-nights-rate correlation, but not entirely based on hotels ADR over previous years.. ??K pts also related to room demand, plus capitals/big-cities IHG hotels seem to be pric3ed higher points wise than a smaller town IHG even if similar nightly rate.
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Old Dec 18, 17, 7:05 am
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Originally Posted by scubaccr View Post
IHG Corporate decides the award night points needed per each hotel, and re-evaluates periodically.

Some nnK points v $$$-nights-rate correlation, but not entirely based on hotels ADR over previous years.. ??K pts also related to room demand, plus capitals/big-cities IHG hotels seem to be pric3ed higher points wise than a smaller town IHG even if similar nightly rate.
Do you know if there's a set time of the year that they do a periodical review/update on a mass scale? e.g. 1st January of each year? Thanks
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Old Dec 18, 17, 7:42 am
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Originally Posted by Lionheart View Post
Do you know if there's a set time of the year that they do a periodical review/update on a mass scale? e.g. 1st January of each year? Thanks
1. No full yearly review to date, and when reviewed not even same month, though usually (last two full 'devaluations') were Feb and April. The most recent even increased max amount from 50k to 60k . Often given a short heads up of 2-4weeks to book old rates. Evaluation typically moves hotl NNk both up/down but more increase then decrease. Last bulk change was something like Apr2016, then one before something like Feb2013 or Feb2014 (from memory)

2. A quite small number of unpublished adjustments may happen throughout the year too.
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Old Dec 18, 17, 10:33 am
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Last three award changes have been implemented as follows

2015 - May 1st
2016 - February 17th
2017 - January 15th

All were announced a few weeks before.
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Old Dec 18, 17, 12:39 pm
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Originally Posted by craigthemif View Post
It should be fairly obvious, shouldn't it?

If hotel could freely choose, they might prefer 10,000 points per night - lots of award nights and IHG corporate is paying. A different, low occupancy hotel might prefer 60,000 points per night, so that nobody ever bothers with points and just pays cash (that the hotel receives).

That said, I do understand that individual hotels have a bit more say whether they participate in Point Breaks...
I have only made a handful of award bookings. When the IC Willard used to cost 50K points and I booked on Chase award night, I saw that it was priced at $57 on the mobile site (I presumed it was what Chase reimbursed IHG) while IC NY Times Square tracked at $65 and Crowne Plaza Downtown Portland tracked at $40. Hence, I thought that the points cost is roughly directly proportional to the amount reimbursed.
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Old Dec 18, 17, 5:37 pm
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Originally Posted by scubaccr View Post
plus capitals/big-cities IHG hotels seem to be pric3ed higher points wise than a smaller town IHG even if similar nightly rate.
Indeed. I expect this is at least somewhat related to expected/past number of award nights redeemed at the hotel. After a threshold, the reimbursement for low occupancy nights doubles.
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