News and notes from around the interweb:
- The IHG Hotels credit card deal with Chase was set to expire next year. IHG was taking in, in total, just $100 million and pocketing $39 million of that while passing through two-thirds to hotels. They believed that the hotel chain was making only 1/10th from its card portfolio what Hilton and Marriott earn.
They’ve signed a re-up to 2036, and expect to recognize nearly $80 million in 2025 and about $120 million by 2028. This is important for consumers because (1) we can likely expect a new investment in the cards, including product changes, now that they have a decade-long runway for payback, and (2) more money going to IHG could mean even less money available to spend on consumers – could earning from spend on the cards possibly get worse?
Fees recognised within IHG’s operating profit from reportable segments were $39m in 2023, with these expected to be double that level in 2025 and to more than triple by 2028, and with continued growth anticipated in the years beyond. The balance of fees is recognised within System Fund revenue, and this is also expected to grow meaningfully over the term of the new agreements.
As part of the new agreements, upfront cash inflows totalling $137m, pre-tax, are expected to be received over the coming months as part of IHG’s cash flow, and will be recognised within fee income over the term of the new agreements.
- Argentina eliminates commercial pilot age restrictions of course pilots must continue to meet requirements for both medical health and competency.
- Trying to gain access to the TSA’s drivers license rule which is ostensibly available to the public.
- Can Starbucks fix long lines at its airport cafes?
- Famed Savoy hotel to auction off furniture and art ahead of renovation, here is the auction site.
- Up to 185% bonus buying Avianca Lifemiles through December 3. That’s 1.16 cents apiece, which is a great price.
- Delta flight attendant stabs colleague at New Orleans layover hotel Yikes.
You always seems to have inaccurate information specially for hotels .
What is the source of information that hotels get 2/3? IHG corporate gave that feed?
They get $25 per night .
You should apologize to the readers for spreading misinformation unless you can cite a source .
I suspect the annual fee for the IHG card will go up. Amex has increased most of their AFs and modified the card benefits but Chase has done little in that regard. I wouldn’t be surprised if Chase makes major card changes across the board, starting with bumping the $89/$99 AF for many of their basic hotel/airline cards. Not sure the IHG card can get any worse on earning. It is one of the very few cards I almost never use (only for bonus promotions and if staying with IHG (although my CSR actually earns more with them I like to use it to bump my IHG points).
As for those Starbucks wait times in Airports, two fixes need to happen: 1) There are still way too many Airport locations (including my home airport in Austin TX) which use HMSHost employees. They could care less about the Starbucks brand promise. 2) After waiting in line 15 minutes for coffee, sometimes (not always but not zero either) they will toss the orders for regular coffee in the queue for the custom drinks. This is infuriating, and can add another 10 minutes to the wait.
Putting any spend on an IHG card once you’ve reached the initial bonus would be absurd unless it’s directly to stay at one of their hotels. If you’re lucky, you can achieve half a cent a point.
However, we have kept four IHG cards for years as the annual fee is easily offset by the 35K complimentary night
Would not be surprised to see a card where the annual free night is contingent on reaching a spend level.
Remember that Avianca miles expire after only 1 year unless you have status, so best not to get too speculative with buying.
Are you suggesting that IHG won’t be sharing their sudden bonanza of cash with cardholders?