IHG Confirms Plans to Add Dynamic Pricing to Hotel Award Bookings
Photo Credit: The InterContinental Real Santo Domingo Hotel in the Dominican Republic is pictured in this photo from 2017. IHG is adding dynamic pricing for loyalty award bookings. Flickr / Evaristo Antonio Regalado Robles
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IHG plans to experiment with moving award pricing in its Rewards Club loyalty program to a dynamic model, which will allow it to price rooms according to demand. The details — and the impact on loyalty program members — will take shape through the year.
InterContinental Hotels Group, the parent of more than a dozen hotel chains, confirmed this week that it is experimenting with dynamic pricing for its award bookings. The group plans to have the new model in place by the end of the year.
Dynamic pricing allows for providers to adjust the price of an award booking as a function of current demand, sliding the cost of a room or airplane seat up or down as a function of market demand.
Initial news of the group's exploration into the space came as part of IHG's financial reporting for the fourth quarter of 2018. In the earnings release, the group revealed that as part of strengthenin
