IHG Rewards Credit Card Shake Up
Enhancements is a term we hear a lot. Usually it comes from loyalty programs that are cutting earning rates. Enhancements rarely mean something good. I have to say that this is one of the few times. We didn't get a lot of detail when it was announced, but it appears things are starting to trickle down. Let's look at the upcoming changes.
Changes Coming To IHG Rewards Credit Cards
The proposed changes to the credit cards are listed here. March 24, 2022, will be when they will be in place.
Changes and enhancements to the IHG® Rewards Club Traveler Credit Card
- The IHG® Rewards Club Traveler Credit Card will become the IHG® Rewards Traveler Credit Card (no fee card)
- Increased ways to earn points through purchases on the card.
- 3X points (from 1X) on utilities, internet, cable, phone, and select streaming services purchases
- 3X points (from 2X) on dining / restaurant and gas purchases
- 2X points (from 1X) per $1 spent on all other purchases
- Automatic IHG® Rewards Silver Elite status
- A simplified way to reach the next IHG® Rewards status level
- Cardmembers will earn IHG® Rewards Gold Elite status after spending $20,000 on purchases and making one additional purchase each calendar year, instead of receiving Elite Qualifying Points (EQPs) on purchases made with the card.
- Earn 10,000 bonus points after spending $10,000
- Cardmembers will now earn 10,000 bonus points after spending $10,000 on purchases and making one additional purchase each calendar year.
Changes and enhancements to the IHG® Rewards Club Premier Credit Card
- The IHG® Rewards Club Premier Credit Card will become the IHG® Rewards Premier Credit Card
- Increased ways to earn points through purchases on the card:
- 5X points (from 1X) on travel
- 5X points (from 2X) on purchases at gas stations, dining / restaurants
- 3X points (from 1X) per $1 spent on all other purchases
- Added flexibility to Anniversary Free Night certificates
- Cardmembers can add unlimited points from their IHG® Rewards account to redeem their Anniversary Free Night at hotels above the 40,000 point redemption limit.
- Up to $50 United® TravelBank Cash each calendar year
- Cardmembers can use TravelBank Cash on United Airlines purchases after registering their IHG® Rewards Premier card with their United MileagePlus® account.
- Earn 10,000 bonus points and $100 statement credit after spending $20,000
- Cardmembers will now earn both 10,000 bonus points and a $100 statement credit after spending $20,000 on purchases and making one additional purchase each calendar year, starting in 2022.
- A simplified way to reach the next IHG® Rewards status level
- Cardmembers will continue to receive automatic Platinum Elite status, but now will also earn IHG® Rewards Diamond Elite status after spending $40,000 on purchases and making one additional purchase each calendar year with their card, instead of receiving Elite Qualifying Points (EQPs) on purchases made with their card.
- Annual fee will increase to $99 in 2023 for existing cardmembers
New Business Card Coming
On March 24th, Chase and IHG will introduce the new I hg premier business card. We don't know what the earning rates or welcome offer will be.
My Thoughts On The Changes
Whoa! Almost all of it is positive, that is a lot to take in. It was always difficult to earn points, which is one of the reasons I haven't focused on it in the past. They didn't justify spending their money on their cards if they only earned 1 or 2 points per dollar. That is below a 2% cash back card. Being a part of the Ultimate rewards program doesn't help since it is only a 1 to 1 transfer rate. Most of the time, you would be better off cashing out your Ultimate rewards points and paying for the hotel, rather than transferring them. It is no longer the case for some.
Gas & Dining
It's a big improvement to be able to earn 5 points per dollar at gas stations. Since grocery is included in the current 2X earning structure, I would like to see it included with these options. This is still a major improvement over the current earn rate. If people choose, this will give them a way to rack up rewards points.
This is a great option for topping off accounts or earning an award stay if you're looking for a better option for gas purchases.
Phone / Streaming / Utilities
The rewards club traveler credit card has increased earning rates on complimentary categories as well, although most will choose a more lucrative option for these purchases. That is true for all except utilities. It will be interesting to see how that is categorized. If you stack with any other deals or their big spend bonuses, earning 3X IHG rewards points is similar to earning 2% back.
Free Night Certificate Improvement
For me, the really big plus is that IHG is making a compromise for their rewards club members. We were all upset that they put a cap on the anniversary free night, and with dynamic pricing recently it made the certificates even more difficult to use. Adding points on top of the 40K free night certificate will allow you to book more expensive rooms. The certificates cardmembers get each year are more valuable because of this.
Big Spend Bonuses
I am not sure how many people will use these cards, but it is interesting to see big spending bonuses offered. If you spend $20,000 in the gas category, you could earn 110,000 points and a $100 credit, offsetting the increased annual fee. I'm sure some will consider this option.
Travel Bank Cash
There is free money for United flyers here. If you are putting it up with your Amex airline credits.
Business Card
We don't have much to say at the moment. A new card is always a plus for us because it doesn't add to our Chase count.
Final Thoughts
It's rare that we see a refresh work so much in our favor. One example is the World of Hyatt card, which was launched in 2011. The last few years have seen some larger devaluations, but these changes give some of that back to the cardholders. It was something I wasn't expecting, but the addition of gas points will make this a program I pay more attention to going forward.
What do you think about the changes? Let me know in the comments.
