The miles & points hobby has many fascinating elements to it. One of the aspects I find most interesting is the interaction between individual hotels – which are mostly franchises owned by third parties – and the corporate entities running hotel chains / loyalty programmes. Specifically… how much are hotels paid for award nights by the hotel chain?
IHG Rewards Club does operate a bit differently from other chains. Even though it promises that there are no “blackout dates”, IHG hotels are only required to release 5% of their room inventory as award nights. (other chains usually promise that every standard room can be booked using points)
IHG hotels are reimbursed according to the following chart:
Then, if the hotel has more than 1,000 award nights in a year (or 2+% of total inventory consumed as awards), an additional bonus payment is made.
Finally, if the hotel reaches a 96+% occupancy on any given night, award nights will be reimbursed at the full average daily rate.
- Less than 96% occupancy is considered “low occupancy”? I’d say 90% is a pretty full hotel!
- For a hotel in the $120-150 price range, a $80-100 reimbursement is really rather good – it’s no wonder that certain hotels pop up frequently on Point Breaks, as that would easily get the hotel into the 1,000+ night / 2+% bonus range
- Why don’t high-end hotels release more award availability? $225 per night sounds pretty good to me, especially since many guests simply won’t pay a $350+ room rate when they have points to use up. And the truly popular / full hotels will receive the full ADR reimbursement
Anyhow, I love finding out details such as these. How about you?