Chase IHG credit card annual free night certificate devaluation
#31
FlyerTalk Evangelist
Join Date: Jul 2008
Location: IAH
Programs: DL DM, Hyatt Ist-iest, Stariott Platinum, Hilton Diamond
Posts: 12,789
The real problem, of course, is that I wouldn't expect the credit card to keep up with points inflation. Certainly, Chase's own Marriott card hasn't. When I first got the Marriott card, the annual cat 5 was very useful for one night stays in Courtyard-type hotels even in major US cities. But those cat 5 hotels are all now cat 7 and 8, and the certificate remains cat 5.
There's still a decent selection of 40K IHG hotels, but will how many will still be <40K in 5 years?
There's still a decent selection of 40K IHG hotels, but will how many will still be <40K in 5 years?
#32
Join Date: Oct 2008
Programs: US, CO, PC, SPG, Hyatt
Posts: 147
Not sure if this has been discussed before, but IHG's new free night page also has the following restriction on the free night certificate "...must be redeemed, and stay must be completed, within 12 months from date of issue." It used to be that you will just need to redeem the free night before the expiration date and it was often easy to pool two free nights together with some careful planing. Oh well...
#33
Join Date: Mar 2017
Programs: HHonors, TrueBlue, Delta SkyMiles, Hyatt Discoverist, Starwood Preferred Guest, American Airlines.
Posts: 2,035
I understand people may be upset, but everyone who signed up for this card knew this was coming sooner or later. IHG was (and still will be) paying good money to their cardholders in terms of a free night. There's no more $700/night rooms for $49 a year, but the card is still a good value, although I still prefer Hyatt over IHG.
Unfortunately shareholders rule the world, so companies will continue to find ways to cut a penny here and a penny there in an attempt to keep inflating the stock value, which includes reducing the cost of loyalty perks -- we've seen it with airlines, and now we see it with hotels.
Unfortunately shareholders rule the world, so companies will continue to find ways to cut a penny here and a penny there in an attempt to keep inflating the stock value, which includes reducing the cost of loyalty perks -- we've seen it with airlines, and now we see it with hotels.
#35
Join Date: Jan 2010
Posts: 1,333
I definitely would not pay $49 for any of the category 1-4 hotels available with the Marriott annual free night, which is why I cancelled it after one year. They are dreadful lot of suburban roadside inns, a long way from any where one would ever venture to on a holiday. Given the torrential devaluation at IHG over the last couple years, the prospect of decent 40k options is likely to go the same route. Hyatt still has a few decent options for their free night, which is why I keep that card instead of the Marriott card.
Status and sporadic free nights are the sole reason that I transitioned from booking whatever looked best in OTA's to booking almost exclusively with the big chains. If they eliminate the incentive, I will take my paltry 20-something annual nights back to the OTA world. The reality is that there is almost always a nicer and cheaper option in a better location in all major cities that I am missing out on by being loyal to the big brands. There are so many nice new properties out there right now and AirBnB continues to drive rates down even further. The big chain hotels are often overpriced and more impersonal, so I would not even consider them if there was not some reward for loyalty for the non-road warrior leisure travelers. My loyalty may not be nearly as profitable as the ubiquitous lifetime diamonds lurking around FT, but there are a lot more losers like me than there are expense account divas in this world, especially as technology continues to make traveling for work increasingly obsolete.
Status and sporadic free nights are the sole reason that I transitioned from booking whatever looked best in OTA's to booking almost exclusively with the big chains. If they eliminate the incentive, I will take my paltry 20-something annual nights back to the OTA world. The reality is that there is almost always a nicer and cheaper option in a better location in all major cities that I am missing out on by being loyal to the big brands. There are so many nice new properties out there right now and AirBnB continues to drive rates down even further. The big chain hotels are often overpriced and more impersonal, so I would not even consider them if there was not some reward for loyalty for the non-road warrior leisure travelers. My loyalty may not be nearly as profitable as the ubiquitous lifetime diamonds lurking around FT, but there are a lot more losers like me than there are expense account divas in this world, especially as technology continues to make traveling for work increasingly obsolete.
#36
Join Date: Jun 1999
Location: NYC/LA
Programs: DL Plat, AA Plat Pro, Marriott Titanium, IHG Diamond Amb
Posts: 7,486
I understand people may be upset, but everyone who signed up for this card knew this was coming sooner or later. IHG was (and still will be) paying good money to their cardholders in terms of a free night. There's no more $700/night rooms for $49 a year, but the card is still a good value, although I still prefer Hyatt over IHG.
#37
Join Date: Feb 2006
Posts: 1,063
I agree and think the new "Top Tier" card will be even a better value given the perks! I'm about to churn this IHG card in Sept AFTER my anniversary night posts.
New $89 annual fee card:
*80,000 IHG Rewards points for a sign-up bonus
*10X points per dollar spent at IHG properties
*10,000 bonus points after spending $20,000 on the card annually
*4th night free on award stays
*Anniversary free night at eligible hotels
*Platinum Elite status
*Global Entry/TSA PreCheck credit every four years
*20% discount on point purchases
https://thepointsguy.com/news/ihg-fr...00000206867312
New $89 annual fee card:
*80,000 IHG Rewards points for a sign-up bonus
*10X points per dollar spent at IHG properties
*10,000 bonus points after spending $20,000 on the card annually
*4th night free on award stays
*Anniversary free night at eligible hotels
*Platinum Elite status
*Global Entry/TSA PreCheck credit every four years
*20% discount on point purchases
https://thepointsguy.com/news/ihg-fr...00000206867312
I already have the Chase Sapphire Reserve, so the TSA/Global Entry Credit won't directly benefit me, unless I decide to use the credit to pay for a friend or relative.
Granted, the CSR has a much higher annual fee of $450, but after the $300 annual travel credit is deducted, and other benefits are factored in, the CSR has enough value to justify keeping it.
10X IGH points at IGH hotels is only worth slightly more than 3 CSR Points, and you are giving up travel flexibility and potential transfer partners.
4th Night free benefit could potentially be valuable, but only until I exhaust by IHG points balance.
Both cards offer Platinum Elite Status, so that is a wash.
The primary benefit has always been the anniversary night, and it'll be easier to redeem, knowing that it is only costing me $49 vs. $89. I am sure that once you upgrade, you will prohibited from going back to the $49 card.
If they wanted to make it more tempting, they should offer 5000 bonus points and/or the opportunity to use the anniversary night at hotels up to 50,000 points.
Realistically, I am sure Chase doesn't care if you are one that barely puts any spend on the card.
I also have the Radisson Card from US Bank, and, while it has also been devalued recently, for $20,000 spend, I can get 2 free nights at any USA property, in addition to the substantial points I would earn. For anyone that is willing to put $20,000 spend spend on the new IGH card, 10,000 bonus points seems pretty paltry.
#39
Join Date: Aug 2017
Programs: Hilton Diamond, IHG Spire Ambassador, Global Entry
Posts: 2,855
Legally, I think Chase/IHG is actually on shaky ground not allowing those who applied for the card and received it before the change at least the first anniversary night at any IHG that has standard room availability. Even now, the Chase website has the following language: "After your account anniversary date, you’ll receive an Anniversary Free Night at any of the over 5,000 IHG® hotels worldwide.1 There are no blackout dates and no restrictions. Look for your free night on your IHG Rewards Club account."
The footnote has some reservation language but nowhere suggests that "any of of the over 5,000 IHG hotels worldwide" means "only those at 40,000 points," and I'm not immediately seeing anything that says they can take away the benefit at any time.
Maybe because there is no spend requirement, they can get away with it. But this is a pretty shady business practice to take the first annual fee and not provide the anniversary free night under the terms used to induce people to apply. I applied in October and think this is pretty lame. I actually might consider a CFPB complaint just to see what happens.
The footnote has some reservation language but nowhere suggests that "any of of the over 5,000 IHG hotels worldwide" means "only those at 40,000 points," and I'm not immediately seeing anything that says they can take away the benefit at any time.
Maybe because there is no spend requirement, they can get away with it. But this is a pretty shady business practice to take the first annual fee and not provide the anniversary free night under the terms used to induce people to apply. I applied in October and think this is pretty lame. I actually might consider a CFPB complaint just to see what happens.
#42
Join Date: Feb 2009
Posts: 6,605
You should be good to go for another year.
it's still a decent card but now the incentive to hold it for more than say 18 months is less, Cancel @ 18 months, churn it at 25 months
Last edited by flyer4512; Apr 3, 2018 at 12:29 am
#43
FlyerTalk Evangelist
Join Date: Dec 2002
Location: Danville, CA, USA;
Programs: UA 1MM, WN CP, Marriott LT Plat, Hilton Gold, IC Plat
Posts: 15,720
Goodbye Chase. I am pretty sure they won’t miss me as I never use the card except to collect the free night. I have no use for a 40k property ( none left where I need them) so that will be $49 saved. Glad I got one more unrestricted night just Deposited.
#44
FlyerTalk Evangelist
Join Date: Apr 2009
Location: India
Programs: Bonvoy Lifetime Titanium, IHG Plat, HH Gold, Trident Plat, DL Diamond, AI Maharajah
Posts: 29,673
seems like a better value than the current card for another $30 a year....i'm going to hold on till they officially announce it before considering a switch....
#45
Join Date: Feb 2013
Location: Hilton, Hyatt House, Del Taco
Posts: 5,378
Does this mean the certificate use is limited to a room that's going for 40,000 pts or less?
In other words, if you find a property where the standard room is 60,000 all points with some points + cash option, you cannot use the certificate towards points + cash?
I suppose there're plenty of properties in US going for 40,000 pts or less. But I really don't travel for leisure in the US, and there's really no IHG property abroad that I'd stay at where you'd find anything for 40,000 pts or less. Only exception is Jpn, where I sometimes stay at ANA CP. But, for some reason, ANA CP's don't seem to like to put their rooms up for reward stay most of the time. All in all, this becomes a useless card, unless 40,000 pts can be used towards points + cash.
In other words, if you find a property where the standard room is 60,000 all points with some points + cash option, you cannot use the certificate towards points + cash?
I suppose there're plenty of properties in US going for 40,000 pts or less. But I really don't travel for leisure in the US, and there's really no IHG property abroad that I'd stay at where you'd find anything for 40,000 pts or less. Only exception is Jpn, where I sometimes stay at ANA CP. But, for some reason, ANA CP's don't seem to like to put their rooms up for reward stay most of the time. All in all, this becomes a useless card, unless 40,000 pts can be used towards points + cash.