Each hotel group adjusts its redemption levels each year based on the revenue performance of its properties. IHG is no different, and today the dealswelike blogger revealed IHG’s 2015 hotel tier adjustments (effective May 1).
From this hotel tier adjustment, we can see the following points:
(1) According to IHG, the number of downgraded hotels is half the number of upgrades. The downgrades were mainly for Holiday Inn and Holiday Inn Express, while most other brands were upgraded, which means the required points for redemption are higher.
(2) Ninety percent of U.S. hotels were upgraded, which is not great news for North America members.
(3) The biggest hit: a few high-value redemption hotels in Asia all took a hit together. The InterContinental property with the lowest points requirement and best value in the region, InterContinental Danang, InterContinental Hua Hin, and InterContinental Koh Samui each jumped two categories, with required points rising from 25,000 to 35,000. Several Hong Kong properties also got comprehensive increases: InterContinental Hong Kong rose directly to the top tier at 50,000 points per night, and both Kowloon East hotels increased by 10,000 points per night. Most properties in Shanghai and Beijing also increased. If you want to redeem at these hotels, make sure you do it before May 1.
Bottom line: IHG hotel promotions always bring new twists. Last year’s Q4 "赏夜" and this year’s Q1 "劲赏" were both relatively strong. For base members or for members who don’t travel often but rely on a Chase card to get Platinum, the requirements were not that hard (by comparison, this year’s Q2 promotion is basically a joke). I personally prefer the “赏夜” promotion because it gives away free nights while “劲赏” gives points, and points can depreciate, but free nights do not. This adjustment also reinforced my view.
Going forward, devaluation in loyalty programs is a long-term trend, so while you’re chasing rewards, make sure you turn that value into better travel experiences. Hoarding points just for the sake of hoarding is not smart—real value is the purpose of playing the credit-card game.
IHG point source: The most cost-effective way is to apply for the Chase IHG card. It offers a 70,000 IHG-point bonus on signup, no annual fee the first year, then $49 annual fee in subsequent years plus one global free-night certificate. That means for $49 a year you can get one upscale InterContinental stay anywhere in the world, making it the annual-fee card with the clearest value.