IHG Dynamic Pricing Available in Europe and the U.S.
IHG confirmed last year that it was testing variable pricing. The hotel chain planned a roll-out in 2019, but that never happened. But we finally saw it in action in 2020, when variable pricing was introduced at select properties in Asia.
Now we are seeing it in properties in the United States and Europe as per Doctor of Credit. What’s interesting for now is that the dynamic pricing has opened up cheaper option for many properties. Dynamic pricing should be related to demand, so it makes sense for now that cheaper prices are showing up.
Travel has been decimated. The hotel and airline industries have been hit the hardest. For IHG, occupancy levels across its hotels fell to historic lows in the first quarter of 2020 due to COVID-19 travel restrictions. Even with 15% of properties closed, revenue per available room was down 55% in March.
IHG started rolling out dynamic pricing in Asia first and now in the United States and Europe as well. IHG has set award pricing, but it never really had an official award chart for its properties. With dynamic pricing we could see some good deals during slow season, or during the current pandemic. But as it’s often the case with loyalty program changes, it usually ends up being bad news. Once people start to travel again, I would expect prices to jump, especially at sought after properties or high season. And that’s often where you get the best value.
Also keep in mind that if you already have any stays booked, it’s worth checking prices to see if you can book for cheaper now.