Is IHG Reward Club’s New ‘Dynamic Pricing’ Really A Good Thing?

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There has been a little bit of excitement in the points/miles world recently due to IHG Rewards Club expanding its new ‘dynamic pricing’ for award nights to much of Europe and the USA. The vast majority of the coverage so far has been positive, because you can now book stays at many properties (on some dates) for fewer points than was previously required.

For example, you can even find 5* Intercontinental hotels in European capitals like Vienna for as little as 17,500 points per night:

That is half the 35,000 points I paid just before Christmas!

Is this really a good thing?

On the face of it, yes.

Although rates now vary from day to day, I haven’t yet spotted any hotels that are charging more points than they previously did – and that is reassuring.

The big problem is the lack of transparency. The points required vary from date to date, but they don’t seem to closely follow the cash rates, so it’s now very difficult to work out what an IHG Rewards Club Point is actually worth.

Global demand for hotels is currently on its knees and is unlikely to reach pre-Corona levels for some time. While the market is soft, it makes a lot of sense for IHG to incentivize stays by offering ‘bargain’ points rates. When demand picks up though, will that same reasoning still exist? Obviously not.

In the medium/long term, I would be very surprised if the move to dynamic pricing works out well for IHG Rewards Club members…

What do you think – is the change a welcome one, or do you think there will be a sting in the tail?


  1. Tilly71 says

    With so many hotel point deals around at the moment & now this reduction, there are no generic valuations. Each redemption in points value is now specific to that booking.

    If anyone is worried for the future valuation of their points, best to “earn and burn” then ASAP.

    • Joe Deeney says

      Yes, I suppose there is now an additional option to buy points for stays now that could work out very well indeed in some cases. As you say, given free cancellation, could lock some stuff in now with any existing points balance with no risk.

      Longer term though, I really would be amazed if this leads to a sustained increase in value of IHG Points.

  2. Craig Sowerby says

    I’m glad that the hotel chain I care least for is the one doing the experimenting! 😀

    I think this could end up being quite useful, but it might take a change in mentality. I suppose I’ll organise my thoughts and write a whole post about it.

  3. Born2sKydive says

    I have been avidly searching for these amazing reduced points rates. However none in Portugal, Spain, Malta at moment. I’m sure Frankfurt is nice n all but not really a destination for beach and winter sun.

    Also have upcoming stay in August O2 IC London and none in England on dynamic. I just feel that so how IHG has managed to do this dynamic pricing in all the countries I don’t want to visit.

    Praying to the points God’s that Malta and Portugal will be soon.

    • Joe Deeney says

      Haha – fair point on Frankfurt for winter sun! Although, I was there for a couple of days this time last year and it was nearly 40 degrees!

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