Don't miss your opportunity--make sure you meet the Priority Club enrollment standard
Dear IHG Owners Association Member,
By now you should have read about the changes to the Priority Club Program that are effective January 1, 2012. In case you missed it, please see the web link at the end of this letter. The Owners Association worked with IHG for over a year in an effort to solve the deficit in the Priority Club Fund. This deficit was the result of a substantial increase in the dollar amount of redemptions paid to hotels due to the improving economy. These changes were done as respectfully as possible to franchisees and to our Priority Club customers. Many different alternatives were reviewed and discussed with IHG including increased assessment rates, raising the high occupancy reimbursement threshold, changing program characteristics such as no expiration, and several others. It was determined in collaboration with IHG that the final program changes were the fairest and most respectful for our franchisees, for our customers, and for the integrity of the Program.
One positive financial aspect to these changes is that if our hotels meet their quarterly enrollment standard they will receive a rebate in early 2013 for the entire enrolling stay assessment paid in 2012. This is a big win for our hotels that meet the enrollment standard. In fact, nearly 70% of the system will be financially better off than 2011 if they meet the enrolling stay standard. Equally important is that the elimination of the enrolling stay assessment removes any impediment to enrolling new customers into the program. Enrollments have always been the single most important factor in the success of the Priority Club Program and with more hotels meeting the enrollment standard, we will continue to see the Priority Club Program improve and in turn, our revenues get stronger. This, along with the reinstatement of the enrolling stay bonus for front office associates are actions that will influence a positive financial result for you. Finally, the automatic waiver process remains in effect where essentially if you are able to enroll 1 in 10 non-Priority Club stays, you are considered to have passed the standard.
This was a challenging and critically important issue for the Association this year, and we recognize the financial impact of these decisions on your hotels. The key message to mitigate this financial impact is to ensure that all of your hotels are doing everything they can to meet the enrollment standard. Thank you and all the best for a great 2012.
IHG Owners Association Chairman
Lea Ann Kish
Priority Club Committee Chair
A Comprehensive Look at PCR Changes for 2012: