{"id":110848,"date":"2024-07-10T19:00:04","date_gmt":"2024-07-10T19:00:04","guid":{"rendered":"https:\/\/entertainment.runfyers.com\/index.php\/2024\/07\/10\/ihg-negatively-changed-its-dynamic-award-pricing-algorithm-the-points-guy\/"},"modified":"2024-07-10T19:00:04","modified_gmt":"2024-07-10T19:00:04","slug":"ihg-negatively-changed-its-dynamic-award-pricing-algorithm-the-points-guy","status":"publish","type":"post","link":"https:\/\/entertainment.runfyers.com\/index.php\/2024\/07\/10\/ihg-negatively-changed-its-dynamic-award-pricing-algorithm-the-points-guy\/","title":{"rendered":"IHG negatively changed its dynamic award pricing algorithm – The Points Guy"},"content":{"rendered":"


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IHG One Rewards<\/a> slowly rolled out dynamic award pricing in 2020, starting with properties in Greater China<\/a> and eventually reaching U.S. properties<\/a>. Then, IHG’s dynamic award pricing algorithms went wild<\/a> as rates spiked at specific properties in 2021. Now, we’re potentially seeing another less obvious devaluation.<\/p>\n

Over the last year, I’ve redeemed IHG points<\/a> for 30 nights. Across these nights, including six fourth-night-free reward nights, I got a redemption rate of 0.98 cents per point. My redemption rate would have been 0.78 cents per point if I didn’t have the IHG One Rewards Premier Credit Card<\/a> and its fourth-night-free reward benefit<\/a>.<\/p>\n

However, as Loyalty Lobby<\/a> recently noted, travelers booking award stays now aren’t getting redemption rates that are as good. I’ve noticed lower redemption rates in searches over the last month, but I figured it was simply the properties and destinations I was searching for. It seems I wasn’t alone, and these lower redemption rates are evidence of negative changes to IHG’s dynamic award pricing algorithm.<\/p>\n

Related: How (and why) to calculate award redemption values<\/a><\/strong><\/p>\n

Let’s examine a few stays from Nov. 4 through Nov. 8 to see what redemption rates you can expect now. For each example, I’ll compare the award rate to the least expensive rate you can freely cancel until shortly before your stay.<\/p>\n

I could book a one-king studio suite with a sofa bed at the Staybridge Suites Austin North \u2014 Parmer Lane in Texas for $650.18. If I booked the stay with IHG points, I’d redeem 75,000 points after a fourth-night-free reward as an IHG Premier cardholder. That would result in a redemption rate of 0.87 cents per point. If I didn’t have access to the IHG Premier’s fourth-night-free reward benefit, I’d need to redeem 100,000 points, which would only give me 0.65 cents per point in value.<\/p>\n

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