christianj

Rumor evidently confirmed!

https://loyaltylobby.com/2019/02/22/...icing-in-2019/

DUflyer

I have noticed that for some hotels the cash component of Points + Cash bookings changes. For example 20.000 points in cash could cost $115 to $140 at the same hotel, depending on the rate of the day, but the points only cost is the same. If that's the change they mean, then that is not too bad.

1353513636

but this is something that's been happening for a while and it sounded like something new based on the wording.

Boraxo

Hyatt is the only program that still offers consistently good deals on points, but the footprint is very limited. Best to burn IC this year before the overhaul results in another major deval. Most of the time these things roll out for the following calendar year so maybe still a window.

Land-of-Miles

This same investor update formed the basis of the earlier stories so not sure that repeating the source and making the same conclusions as others can be seen as "confirmation"

Dave Noble

The accor model works really well. 2000 points is worth EUR40 and I can generally use points on bookings without an issue.

tth6133

What's point of earning points then? Why not just earn cashback instead? The revenue model doesn't encourage loyalty.

Concerto

You really think that is good? So if you have 2,000 points or 2,000,000 points, it makes no difference, each point is worth just 2 cents. There is nothing to aspire towards, nothing to aim for ... except status, of course.

Dave Noble

Yup I sure do. I can always redeem points when I want to - what is there to aspire to? what is the point of theoretiucally being able to book a hotel that I am not interested in staying in vs being able to use points at times when I actually want to stay somewhere

Most IHG horels I stay at have very high points requirements compared to how much it is going to cost to stay there on a paid booking. e.g. for a stay next month I can pay AUD199 or use 50,000 points

As a platinum member at Accor, which does have a defined point value, the benefits of the status make it worth staying. If a cash rebate to card was privided, that wouldn't benefit me at all

demue

Wishful thinking on 2cent per point valuation. That I wouldn't mind. More likely 0.5cent or less which isn't great. Ymmv

Fyd

Uh, no... Accor points have a fixed value of 2 Euro cents: it's always 40Euro per 2,000 points...
But you can't "always" use them: the lowest promo rates are excluded and you can't use them during points promotions....

Land-of-Miles

When you go down the revenue route why would you ever book direct as opposed to at hotels.com and guaranteeing 10% of booking value credited against future bookings? The only reason you might not do this would be very attractive corporate rates or Elite Loyalty benefits but the latter is broadly out for IHG (apart from RA and IC) or if you were already raking off 10% too via TCB or Quidco.

demue

We are not talking about Accor here, right? IHG sells points ~0.7cents (e.g. Cash and points) so you really think they are going to peg a value of 2 cents? Know your program.

Concerto

I admire your conviction, Dave, and your viewpoint is very helpful actually. The only thing is, I feel Accor somehow doesn't generate loyalty the way it could do with that programme. There's something wrong with it, somehow. But I am definitely going to reflect on what you said.

But it's true: Accor points are worth 2 cents each. 2,000 points give indeed a €40 reduction on your booking.

scubaccr

Hopefully related to issue at the cheaper hotel brands in cheaper locations, where a HI or HIE costs in region of ADR us$40 or $60-80, and points could be any of bands 15/20/25/30k (as award price seemingly related to how popular awards are at individual hotel, not just cash price), and using P+C to purchase 5k/10k costs 80% or more of cash ADR rate.

I can see it makes sense for variable pricing to offer at lower rates in the above scenario, Alas.... except such hotels will be searched out and IHGers needing/wanting cheap points will do repeated P+C+Cancel, forcing IHG to withdraw such types of low variable pricing.
Better instead for IHG to discount points needed in such hotels by 5k or 10k , so retain max rate points per hotel, but reduce if ADR us$.night rate is a crazy low amount. Could even be business district hotels with much higher cash paid rates Mon-Thurs nights, but fri/sat/sun rates only half weekday paid room rates, could have lower weekend points rates.

Maybe make more sense, that by setting a $$ -> points value for a standard room, that if points rooms are exhausted, you could still book a std room with points, but the number of points would be closely tied to that days ADR/Flex rate.

Guests/IHGers might not want to unless points rich cash poor though, eg 70K IC Park Lane std room varies low occupancy rates Jan/Fen gbp350++ to during UAE june/july influx high occupancy gbp800, so whilst fixed 70k is then great value, a variable points might be 160k or higher

Yep I know, all above is pure speculation. My prayer is this coming variable pricing does not mean low/standard/high season points rates for hotels or switch to HH model with aaward points needed tied to on-the-day paid rates