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IHG One Rewards is gradually introducing dynamic award pricing in 2020, starting with properties in Greater China and eventually rolling out to US properties. Then, IHG’s dynamic award pricing algorithms went wild with rate hikes on certain properties in 2021. Now, we’re potentially looking at another, less obvious devaluation.

In the last year, I have redeemed IHG points for 30 nights. On all of these nights, including the six fourth-night-free award nights, I got a redemption rate of 0.98 cents per point. If I didn’t have the IHG One Rewards Premier Credit Card and its fourth-night-free rewards benefit, my redemption rate would have been 0.78 cents per point.

However, as Loyalty lobby Recently noticed that travelers booking award stays are no longer getting redemption rates which are good. I’ve seen lower redemption rates in searches over the last month, but I thought that was just the properties and destinations I was looking for. It seems I wasn’t alone, and these low redemption rates are evidence of negative changes in IHG’s dynamic award pricing algorithm.

Related: How (and Why) to Calculate Award Redemption Values

Let’s now examine some investments from November 4 to November 8 to see what redemption rates you can expect. For each example, I’ll compare the award rate to the least expensive rate you can freely cancel until shortly before your stay.

I can book a One-King Studio Suite with Sofa Bed at Staybridge Suites Austin North — Parmer Lane in Texas for $650.18. If I booked a stay with IHG points, I would redeem 75,000 points after the fourth-night-free award as an IHG Premier cardholder. This will result in a redemption rate of 0.87 cents per point. If I didn’t have access to IHG Premier’s fourth-night-free award benefit, I’d have to redeem 100,000 points, which would give me just 0.65 cents per point in value.

If I wanted to stay at the more centrally located Holiday Inn Express & Suites Austin Downtown — University, I could book a standard District View room with one king bed for $866.91. As an IHG Premier cardholder, I would need 107,000 points for this stay (or 150,000 points if I didn’t have access to the fourth-night-free award benefit), which would give me a redemption rate of 0.81 cents per point (or without the fourth-night-free award 0.58 cents per point).

Let’s go to Paris for the next example. I can stay in a standard room with a double bed at the Crowne Plaza Paris – République for $1,312.16. As an IHG Premier cardholder, I can redeem 164,000 points for a redemption rate of 0.80 cents per point. Without the fourth-night-free benefit, I would have to redeem 221,000 points for a redemption rate of 0.59 cents per point.

Alternatively, I can book an essential room at the Kimpton St Honore Paris for $2,585.24. As an IHG Premier cardholder, I can book the same room type for 331,000 points after the fourth-night-free award, giving me a net 0.78 cents per point redemption rate. Without the fourth-night-free award, I would have to redeem 433,000 points for a redemption rate of 0.60 cents per point.

Let’s turn to Tokyo for two final examples. I can book a standard room with one queen bed at Hotel Indigo Tokyo Shibuya for $1,722.81. With the fourth-night-free award, I can redeem 242,000 points for a redemption rate of 0.71 cents per point. Without the fourth-night-free award, I would have to redeem 324,000 points for a redemption rate of 0.53 cents per point.

If I want to save some points or cash, I can book a One-King Classic Harbor View Room at the InterContinental Yokohama Grand for $544.67. With the fourth-night-free award, I can redeem 73,000 points at a redemption rate of 0.75 cents per point. Without the fourth-night-free award, I would have to redeem 101,000 points for a redemption rate of 0.54 cents per point.

I chose three popular spots and two hotels in each destination on randomly selected dates. Based on these six examples and my experience searching for awards over the past month or so, it appears that IHG has changed its dynamic award pricing algorithm in a negative way.

A spokesperson for IHG Hotels & Resorts issued the following statement to TPG:

“IHG continues to use a dynamic pricing model, which is influenced by travel demand, season and a number of factors like you mentioned. Travel demand is high, especially in popular travel destinations during peak travel seasons.

“We know points are the number one reason our members join the program. We encourage them to take advantage of ways to stretch their points further and explore our Reward Nights discount landing page featuring new and newly renovated hotels. All IHG One Rewards members can regularly enjoy a 15% discount at newly opened and improved IHG hotels globally. We offer special Reward Night discounts throughout the year for our Platinum and Diamond Elite members and cardholders.”

As these examples show, you can still earn more than 0.5 cents per point — the rate at which you can occasionally buy IHG points and TPG’s July 2024 valuation of IHG points — even if you don’t have access to the fourth-night free. Reward benefit. And if you have an IHG One Rewards Premier Credit Card, IHG One Rewards Traveler Credit Card or IHG One Rewards Premier Business Credit Card And so get a fourth-night-free award when redeeming IHG points, you can get even higher redemption values.

That said, it still gets me significantly lower redemption rates than last year.