World's largest hotel group promises to pay checked baggage fees

"Overpack. There's plenty of room for the maybes and why nots. We're paying"

So urged InterContinental Hotels Group recently in an all-out push to win back customers to its properties this fall with an unusual promotion in which it's offering to pay for guests' baggage fees.

There's plenty of fine print in the offering -- which reimburses guests up to a maximum of $50 for one bag per person per trip based on an airline's fees as of Aug. 13. The promotion is available for guests staying in any of IHG's 4,500 properties -- which include Holiday Inn, Crowne Plaza and InterContinental hotels -- from Sept. 1 to Dec. 30.

The promotion highlights the tough times that continue to plague the hotel industry, where rates remain stagnant even as airfares creep higher. Domestic hotel rates actually fell this summer by 6%, while domestic airline ticket prices are as much as 20% higher than they were a year ago.