American Airlines and Hyatt Hotels announced a partnership that will allow elites from each program to earn while flying or staying with the other. But some aspects of the partnership are one-sided, leaving Hyatt members upset, but maybe they shouldn’t be upset.
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The Partnership
American Airlines and Hyatt members will each earn points in the other program, allowing them to double dip and earn on both programs for a single transaction. Hyatt Discoverists, Explorists and Globalists will earn 1 bonus World of Hyatt point for every dollar spent on American Airlines flights in addition to American Advantage miles. All American Airlines elites will earn one bonus point per dollar spent on Hyatt stays.
How Does This Compare to Similar Partnerships?
Delta had a similar reciprocal program with SPG (Starwood Preferred Guest) prior to their merger with Marriott. Marriott had their own relationship with United Airlines and they matched nearly exactly the (groundbreaking at the time) Delta/SPG Crossover. Elites in either program got the lowest level status on the other.
For what it’s worth, I attempted to use my Crossover benefits (as an SPG Platinum) to get something as simple as priority checkin and while I qualified for the benefit (Crossover printed on my boarding pass), I was denied flatly at the airport.
Where this diverges from similar programs is that the benefits really come into play for American’s (unpublished requirements) Concierge Key customers who have been gifted a highly valuable, highly coveted status with tangible benefits from day one. Hyatt has an equally double secret top-tier unpublished status as well but their “Courtesy Card” holders) receive no status with American whatsoever or at least none was reported. This is frustrating for Globalists who feel they should have gotten something, even Gold status (lowest tier) with American.
Hyatt elites will have the opportunity to challenge for American status, presumably with no cost, eliminating the $200 fee American currently charges to anyone who pursues status via truncated requirements. Full details coming, the cost waiver is conjecture on my part.
What Has Globalists Upset?
Getting to 60 nights with Hyatt can be really tough. Traveling professionals spending 16.4% of their entire year with the brand deserve more than Globalist status, they deserve a medal. Plenty of ink has been spilled decrying the tragedy that is Hyatt’s footprint in the past, however, through partnerships, expansion, and acquisitions the chain has increased from 700+ properties to more than 1,000 in the last 12 months.
Nevertheless, pick a medium to small market in the US and count Hyatt properties (if any) compared to Hilton, IHG or Marriott and you will see why Hyatt’s 60-night requirement is so tough to achieve. For those that climb the mountain and make the commitment, it’s precious, not something to be given away.
Some estimate the quantity of Globalists to mirror Concierge Key at about 11-15,000/year; neither American nor Hyatt will disclose the actual number so assumptions and estimations are the best we have.
Globalists get nothing while Concierge Key flyers with American get the very best published status available. That has a lot of Globalists upset, especially those concerned that their chances of securing upgrades diluted by half as a result of the partnership. Matthew suggested Globalists would have gotten entry-level Gold status with American in exchange for their loyalty to Hyatt. It’s as if Hyatt values the potential for new customers more than their own current customers and American looks at even the most elite Hyatt customers no different than any other member off the street.
The reciprocal earning bonuses are appreciated, but not a major motivating factor for Globalists I know. After all, they could just pay for their American flights with an American Airlines credit card and get more benefits than they do through this relationship and then some.
Globalists Shouldn’t Be Too Upset
While Globalists take the number of purported CKs to mean that their ranks of Globalists have doubled, the reality is that math probably doesn’t work. For example, assuming the number of Concierge Key members is 11,300, identical to Hyatt Globalists some of those CKs are already Globalists as both elites are serious travelers and likely road warriors. Pure duplication of members will reduce the saturation significantly.
Of those that are not already Concierge Key and Globalists, those CKs are likely already entrenched in other hotel loyalty programs like Hilton, IHG, or Bonvoyed. If they hadn’t committed to Hyatt before this partnership there was either a good reason or lack of desire to switch programs – giving them free status won’t necessarily move the needle for them. I previously described how useless I found Crossover benefits from SPG to Delta to be, and I never used my United Silver status through Marriott. I was committed to my experience elsewhere, others will be the same.
The threat to Globalists has to be further reduced when split over even more properties in more markets and the fact that unlike competition among other Globalists, Concierge Key holders will not have to maintain 55-60 nights and therefore, likely won’t.
In total, I would estimate that no more than 2,000-3,000 Concierge Key customers utilize their Hyatt Globalist status at an elevated rate with a measurable effect on current Globalist elite experience.
Hyatt frustrated me by separating benefits from earning status, now that decision is their saving grace. While CKs will have “Globalist” lite status, they won’t have the (4) confirmable suite upgrades, free 1-4/1-7 category free night certificates – those are all earned via qualified stays.
Hyatt didn’t have any such tie-ups with airlines before so in this case, something really should be considered better than nothing. Further, I would rather have the option to challenge for higher status levels than to be gifted a status that adds little value to my life as the other programs have done.
It’s a Matter of Scale
The American Airlines Advantage program is the largest loyalty program in the world. Hyatt is dramatically smaller. Globalists would be a rounding error in the Advantage program, and the reality is that American is connecting their best customers with Hyatt which could dramatically change their business. Hyatt doesn’t have as much to offer in the same way and needs to make up ground accordingly in order for a deal to be mutually beneficial.
What do you think? Did Globalists get a bad deal? Will the new Concierge Key members have a measurable effect on Globalist’s experience? Is something better than nothing?
Are you sure Discoverist are excluded from this promotion? The AA press release states “In addition to AAdvantage miles earned by flying on American, World of Hyatt Discoverist, Explorist and Globalist members will be able to earn one World of Hyatt bonus point for every eligible dollar spent on qualifying American flights.”
I saw mixed reports but upon further examination found more with Dicoverist included than without. Thus, I changed it accordingly.
Globalists got screwed – after the massive increase in nights required they give it away like candy to Concierge Key members. There are a lot of these who will be competing for suite upgrades now.
I credit my AA flights to BA so get no points in Hyatt from the deal – so I lose upgrades and get nothing.
Yes we have a right to be unhappy.
I think specific use cases have a reason to be unhappy, and maybe you are that use case, but all of these changes were the same before the announcement with the exception of the new competition from CKs which I outlined as less than perceived. Maybe this promotion will be enhanced due to Globalist outrage (let Hyatt know you’re not happy) and if the program doesn’t get a bunch of new participation from American (will let them know it wasn’t generous enough.)
Where did you hear that Discoverists are excluded? This is the first I’m hearing of it…
I saw mixed reports but upon further examination found more with Dicoverist included than without. Thus, I changed it accordingly.
CKs will now be able to make Guest of Honor reservations, which further increases the number of “Globalists” competing for free suite upgrades.
This is kind of my point, however. To use Guest of Honor only full point redemptions will apply. It’s not until you get to 12,000 points per night hotels that suites are often even offered (Hyatt Regency and above). Then the CK is going to have to accrue enough points for this to be the case, either spending $12,000 on American or staying in hotels (or transferring from UR). That’s for one night.
When you reduce the amount of CKs that only have status through this program, and then narrow the field further by just those who have accrued enough points, then narrow it further for those redeeming for other on guest of Honor then further narrowed to be at a hotel with just one suite left and then narrowed still further to that CK Globalist getting the suite over a true Globalist member – how likely is that to really have a material affect on a Globalist’s life? How likely is it even for all of those conditions to be met?
You are correct that there will be the possibility for CK Globalists to do this, but again, the chances that it will actually negatively impact an earned Globalist is a statistical anomaly.
I wouldn’t narrow the population to those who have accrued enough points as most Globalists I know who make Guest of Honor reservations do so because Hyatt makes it easy to transfer points from one member to another.
Don’t American EP elites get Globalist as well?
No. I am both and I earn my Hyatt stays for Globalist.
They do not, I am afraid.
I dunno, Kyle. I love Hyatt and as a Globalist I am not feeling as violated as others. I mean, c’mon, Hyatt is facing a huge battle against much larger Hilton and Marriott…they should be allowed to add a bit to their Globalist base that are CK’s. I just don’t see where another 12K or so members will really change much. Honestly, most of the suite issues are not because of upgrades but usually with the Sales team giving them to large bookings and functions.
If anything perhaps this is a positive as Hyatt will find ways to grow more spenders and thus be able to either convert hotels or show developers that building new properties for the Hyatt brand is attractive. Thus, we get more properties (a weakness now) and a win-win.
Kyle. There are many If not over 100 Hyatt’s for less than 12000 that offer suite upgrades. What kind of comment is that ?
Ryan, I am a pedantic blogger wh0 takes reader comments seriously, so I decided to count them – by hand – and I found there were actually less than 100 in total (fewer after tonight’s point moves) that were above Hyatt Place (which do not offer a suite, at least not one worth noting) or Hyatt House (they are all-suite properties so your chances are 100% of getting on there anyway).
Just 82 in a mix of Regency (mostly), some Centric, and even a couple of Park properties generally in India, that can be had for less than 12,000 points per night. That’s about 8% of all properties available for points redemption in the World of Hyatt program.
So, I will tell you “what kind of comment” that is… a generous one as it turns out.
Source: http://bit.ly/2OawIO1
This article reads like apologism.
I’m really sorry about that…
🙂
Even as a Lifetime Globalist, from my perspective this seems like a sharp no brainer move by Hyatt – getting access to the elite cream of the crop biggest most-profitable spenders from American. Surely this will result in new business for Hyatt but as you note it won’t be every CK that goes for it.
Hyatt has great properties and if CK flyers know they will be recognized for the elite traveler that they are on their first steps inside the door many will likely check it out and Hyatt can count on their strong accommodations and gracious host value proposition and expect that many of those will love staying @Hyatt.