Hyatt says it is adjusting to the new reality of reduced business travel but more leisure travel, though it seems to me Hyatt is just preparing us for a major devaluation next year. That would be a disastrous move for the hotel chain and shows a fundamental lack of understanding of loyalty by the Hyatt CEO.
A Warning To Hyatt CEO, Who Seems To Be Confused About Loyalty And Hinting About Massive Points Devaluation
Hyatt CEO Mark Hoplamazian told Skift that his hotel chain is pivoting from points to great experiences as a means to capture loyalty:
“We’ve decided that a more enduring way to actually capture loyalty is through great experiences, and that starts with leisure. So we’ve shifted the portfolio along a very deliberate position, which is we can drive true loyalty that’s experiential loyalty, more than it is the currency of the points and becoming a prisoner of the loyalty program. And that’s worked.”
What is true loyalty? Dollars spent? Nights stayed? I’m not sure what Hoplamazian even means by “experiential loyalty” but I will certainly stipulate that there are certain experiences, some tangible, some less so, that foster loyalty. Breakfast is big for me as a Globalist. It’s an experience that I bank on at a Hyatt. But I don’t think that is what Hoplamazian meant (more on that below).
There are certain memories that draw me back to properties over and over. Paris is full of great hotels, but I love the Park Hyatt Paris because it is where I had my honeymoon and because of my friendship with former GM Claudio Ceccherelli. I generally will not look elsewhere for a Paris hotel.
But I would have never gone there in the first place if not for the chance to earn or redeem Hyatt points there.
And if Hoplamazian means that experiences like hip bars or cafés inside hotels will replace the value of points, then I strongly disagree.
View From The Wing says it is a mistake to unbundle the customer as business versus leisure. That is true. Business travelers and leisure travelers may have different reasons for choosing Hyatt, but both are loyal to Hyatt because the elite status and points make going out of the way to stay in a Hyatt property worthwhile. That is the case for me: it is certainly not always convenient for me to choose Hyatt over Hilton or Marriott, but I make the effort because overall the points add up and the treatment of those with top-tier status tends to be far better than at other hotel chains.
Big Devaluation On Horizon?
Skift adds:
“With roughly half of Hyatt’s business likely to come this year from leisure travelers, the company encourages guests to sign up for its loyalty program less for the points and more for perks, such as access to discounts on stays, “curated meditations” to help them relax, the ability to stream content from their favorite streaming services via Hyatt’s TVs, and so-called “milestone awards,” such as access to its “club lounges” at select properties that are separate from elite status and are available to everyone based on hitting certain targets for stays.”
Well, isn’t this elite status in a nutshell? Discounts, milestone awards, club lounge access? To argue those are more important than the points may be subjectively true for some, but I would wager not for most and objectively the points can hold more value, depending upon where you redeem them.
This makes me think that Hoplamazian is setting us up for a big World of Hyatt devaluation next year. The focus will be on elite benefits, with the cost for redemptions going way up. Hyatt pricing is still great compared to the competition (an imbalance that typically is closed over time), but it already has edged up over the last few years. However, I expect the new Sabre reservation system in 2024 will lead to much more variable pricing that will instantly eliminate the outsized value of certain redemptions.
Then in 2025 I expect the other shoe to drop, with status awarded based upon dollars spent or at least a combination of nights and dollars spent. Currently, you can earn top-tier status for 60 nights, regardless of how much you spend, which is why so many are making MGM mattress runs this month in Las Vegas.
All of this is a mistake…I spend a lot of money on Hyatt each year because I see relative value in the World of Hyatt program. Take that away and I will go full free agent and probably never look back. I’m still willing to play the game for those aspirational redemptions like the Ventana Big Sur or the aforementioned Park Hyatt Paris, but make those 125K/night instead of 45K per night and I’m out…and so will many others. With Hyatt’s more limited footprint, it really cannot afford this.
CONCLUSION
Points are still huge in the World of Hyatt program because redemptions are still attractive and a huge driver of loyalty for me. I care about amenities, sure, but I could not care less about “experiences” like curated mediation. I also like Regency Club Lounges and desks in my room, and I’m still in my 30s. Before Hyatt destroys its loyalty program, I hope it really understands what is actually driving loyalty right now. It’s not the yoga.
I dont know… Why do people stay in Hyatt hotels of all places? Everyone I know does that because of the points. Be it the chance to transfer Chase UR or collect points at work and then use them for private trips. Why would anyone go to Hyatt then? It´s not like they have a great footprint or stand out in any other way as a chain. It´s silly to believe otherwise.
I am your ordinary business traveler, but the way Hyatt Hotels treat me merits a huge comment, along with the points. So I will stay this year at one Hyatt Property over 85 nights. I get treated great. I switched to this Hyatt property because they promised to take care of me, with an upgraded room when available, and they have been great. I will hit over 120 nights in all of Hyatt this year. Marriott was once great. However, now, anyone can buy elite status by signing up for credit cards. Being a lifetime titanium member at Marriott means nothing now. They don’t even recognize you on the phone or when you check in. It is devalued so much that I dread having to stay at Marriott, but sometime I have to because there is no Hyatt. I just stayed at a Marriott for 3 nights and no upgrade, no real benefits.
As for the benefits, I just booked rooms at the Hotel on the French Rivera, got my suite for my wife and I and our adult children that will be joining us. I saved my points for this and used 200000 points, on Marriott with a half of million points in my bucket, I could not get close to what I got with Hyatt.
We all have long memories of what it took when the pandemic hit, and when these companies devalue, just wait until the next crisis hits. Look long term Hyatt–do you want to have people complaining. Just look at the flack from fallout. Now, someone was smart enough to post what it takes to transfer to another airline yesterday. I am a million miler on Delta, but at the last devaluation a couple of years ago, I switched to United, and have not look back. While United is not perfect, I don’t have to worry so much about being a million miler approaching 2 million with my 1K status. I am sure I’m a drop in the bucket for Marriott and Delta, but I wonder how many other people switched to other airlines or will switch and what happens if the switches are greater than what Delta predicts. You can print money only so long. At least I got my life time reward for a vacation next year in the South of France.
Safe travels to everyone
Agree. Going to spend all my points. Love capital one points. No longer loyal to anyone but myself
Hyatt should’ve never awarded elite nights (just points) for Vegas stays imo.
Hyatt in 2021 did an excellent job leveraging reduced thresholds and different travel patterns to gain new customers (like me!), so I hope they don’t do the opposite and alienate many of us with the changes next year. It was possible to be Globalist for a bargain in 2021, but (except for Vegas) not at all with rates in 2023 onwards
I’m with you, Matthew. I have LT Titanium at Marriott (and haven’t stayed in one in years), HHonors Diamond via Aspire, and go out of my way to earn Globalist status each year. If what you hypothesize comes to pass, I’m going full free agent. There’s no reason for me to spend so many nights in crappy Hyatt Place properties when I can be much more comfortable elsewhere.
And having elite status effectively buyable via Prive, Stars, FSPP, etc., there’s really not much value proposition in pushing for status anymore, other than outsized redemptions. If those go the way of the dodo, so does my loyalty.
Are we soon to have an alternative way to get Bonvoyed than staying at a Marriott? Or will Hyatt just require 340,000 points for a night’s stay in some dump like Hellton?
1. discounts on stays – I am interested, but that’s pretty much the same thing as redeeming points
2. “curated meditations” – I don’t know what this means but I don’t think I am interested even if its free
3. the ability to stream content from their favorite streaming services via Hyatt’s TVs – I don’t watch a lot of TV at hotels because I have a TV at home
4. “milestone awards,” such as access to its “club lounges” – I had access to lounges as a globalist and rarely used them because…most Hyatts don’t have them.
“3. the ability to stream content from their favourite streaming services via Hyatt’s TVs – I don’t watch a lot of TV at hotels because I have a TV at home”
I have TV at home, but not cable, so I watch TV more in hotels… I stream a lot at home, not so much in hotels, but I do like being able to cast to the hotel TV if I want to. Shouldn’t be a loyalty benefit though, just a feature of a modern TV in a modern hotel.
If the Hyatt loyalty program goes the way of Hilton and Marriott it will end up being owned by either Hilton or Marriott.
I am an example of how they will lose on this. As a lifetime Globalist for years, as well as an annual Globalist, this designation sparks my choice of PH in many cities. Having as well Four Seasons Elite and Mandarin Elite I get even better perks BUT no points. Take for example Vienna. I have long been loyal to PH there. However the new Mandarin opens up this fall. There I also receive $100 credit towards the room charges and free breakfast can be done as room service. Should Hyatt change their program, devalue anything more, any incentive I had is gone. The reality being that in most cases MO and FS offer a better experience at often a similar price (slightly higher). Tokyo, Chicago, Zurich, Milan, pretty much everywhere there is a PH there is a better option that tips the scales if the points and perks start to lose more value. On the mid level scale the choices are even more glaring given Hyatt has risen on the quality of its loyalty program to combat its lack of footprint. Diminish it and you lose. So unless Hyatt is planning on buying IHG or Four Seasons (neither ever happening) they will, I am quite sure, be shocked at the fallout with rates having to be lowered dramatically and any business travelers they had (still plenty) seeing no benefit, especially at the higher tier properties.
What is “Four Seasons Elite”?
It’s an invitation status given by FS. No criteria is known and is based on their own measures. You get a concierge, $100 a stay credit ($200 for suites), breakfast (dining room or room service), and priority upgrades (which they are very good about) and is prioritized over anyone else, priority dining reservations, impressive room amenities added that are beyond the normal, and property perks that are usually presented at each individually. They also send you a nice gift each year, often a beautiful travel book. Mandarin is the same and it’s above their standard FAN membership. Both usually also get you a greeting at the front by the GM or manager on duty, for what that’s worth. Always feels a bit awkward to me as they escort you to the room.
It’s basically a small step above what you get from booking with an affiliate concierge, with the biggest being that you are greatly prioritized for upgrades.
Yeah… I go out of my way to stay over 100 nights a year with Hyatt specifically because of the loyalty program. If they lose that I have zero incentive to continue prioritizing the program. And IHG, Hilton, Marriott all have a better footprint and more diverse options.
I know they set the Vegas thing up, but I kind of understand their point when people are “buying” Globalist for $750.
That in itself devalues the program. Credit to those who hack the system, but then don’t get upset when you get treated as a $750 a year customer.
Casinos deal with this all the time, hustlers play on multiple days, on low house edge Video Poker machines and get the highest status for an expectation of less than $500 lost. Caesars Seven Star used to offer the ability to eat for free 365 days a year at their lounges and 2 had the ability to team up and live comped in their hotels 365 nights a year.
Now casino status is almost worthless for professional gamblers because of devaluations. The gravy train doesn’t last forever as the points hustlers are also finding out.
100%. As someone that’s been doing travel and loyalty programs for years, I’ve seen this happen so many times. The blogs and YouTubers share what incredible value you can get with status matching, plying VP on tier multiplier days, status challenges between hotels, hacks for airline status, et cetera. Hyatt is like this now, where seemingly everyone is a Globalist and/or staying on points. Not only does it cheapen the experience for everyone, but Hyatt is going to have to devalue the program to keep it competitive.
We’ve seen this happen with Marriott, Caesars, MGM, Hilton, AA, and most recently Delta.
Dave, I am curious as to how people can become globalists at Hyatt , for $750.00 at MGM?
$25/night and resort fee waived…but of course those days are over.
The big picture problem is every company has a loyalty program, and everyone is enrolled in everyone’s loyalty programs. It’s become cliche. When you’re loyal to everyone you’re not really loyal, just working the system. Why should, say Hilton, give me a bunch of free stuff (and put up with temper tantrums that getting “elite” status gives some members) because I signed up for a credit card. The system has become too bloated. No offence to anyone in the travel industry who makes a living off of this phenomenon, but even the fact that there are travel website devoted entirely to working within the elite loyalty programs kinda is case in point. Loyalty has become a bloated juggernaut, and there will be a correction. Points has more or less become an affluent person’s game and isn’t actually generating much brand loyalty.
I switched from Marriott to Hyatt three years ago. I go to great lengths to stay at Hyatt Properties. This year I am both Globalist and Marriott Ambassador.
Hyatt still treats me great and gives me value when traveling with my family. My point redemptions are for properties that give me acceptable value (Carmel Valley Ranch is great but not $1250 dollars a night great).
Marriott is reviewing it’s benefits knowing that things like SNA’s are pretty much worthless.
If they add a spending component and gut redemptions, I’m out. The Four Seasons is often less expensive and far superior to many of the Hyatt’s I’ve been staying at.
I consistently go out of my way and even plan extra trips to get the 60 nights I need to keep Globalist. If Hyatt devalues to become anything like Marriott, I’d dump them in a heartbeat and stay with the hotel brand that has a hotel on every corner.
Think of loyalty as an elastic band. Life goes in cycles and these corporations take advantage of those cycles. However, like an elastic band, everything that goes one way too far, will come back the other way. Remember how they begged for our loyalty during the pandemic? Extensions of status, rollover of points an miles, extra perks, etc… Now they are taking all that away because demand if very high. Once the elastic band comes back again, they will regret their moves that goes against loyalty. I think loyalty for hotels and airlines is over and they will regret that in the future. I go out of my way to stay at Hyatts because of Globalist benefits. If that goes away, I won’t make any effort to stay at their places. I rather stay at local hotels when going to Europe, Asia and Latin America where you get way more for your money.
Well said Matthew. I used to be a rabid Delta loyalist but they made the same kind of moves Hyatt is hinting at and now I avoid Delta wherever possible. The difference is, Delta is among the biggest players in the country while Hyatt is not. Hyatt has been doing a gradual devaluation the last few years through new award categories and moving hotels into more expensive categories. Weakening their loyalty program which – given Hyatt’s comparative size – allows Hyatt to punch above their weight would be an awful idea. Why kill off the best thing you have going for you?
People need to move on with obsessing about the Vegas elite night thing. It’s done. Over. Fin. It’s pointless.
The elites that earn lots of night at Park Hyatt probably aren’t a fan of people earning nights at a Hyatt Place. This kind of thinking just spirals down.
What we really need to worry about is just what Matthew is talking about. Guided meditations? Heaven help us if that is what WoH turns into.
The fundamental misunderstanding about loyalty is that the hotels and the program aren’t the product.
The hotel owners are the customers and the programs are ways to funnel the product, ie program members to hotels.
One of the most ridiculous phrases uttered by an otherwise successful and intelligent business person is “curated meditation.” I have nothing against meditation, but the idea that someone would value paying Hyatt points for a curated one over a Park Hyatt or otherwise lovely stay is rhetorical deceit, at best. I teach rhetoric, and I get paid for doing so. I use some of that pay to stay in Hyatts. I absolutely would not pay a penny for someone else to “curate [my] meditation.” What a curation of malarkey.
When did you explain this to him?
Here. Hyatt reads my blog and I hope they share this post intended for him…but you knew that.
Hope springs eternal.
Hyatt’s loyalty program has really been fraying at the seams since Covid. Hotel operators can go completely rogue (deciding they won’t honor suite certificates, denying globalists breakfast when restaurants were permanently closed after Covid at allegedly full service properties, etc.) I write to my concierge and she escalates it to the management team. I’m 0/3 for escalations landing in my favor.
Points being devalued is something I’m semi-willing to accept with Hyatt. But operators’ profit interests being prioritized over loyal guests, even without backing of T&Cs, is a dealbreaker for me.
I really have not found this to be an issue at all for me. Sure, some will try and sneak in breakfast charges and destination fees but all were removed when bringing it up. Upgrades clear for me probably 90%. I’m sure that it varies for everyone and as lifetime my percentage may be higher, but still nothing like Marriott or Hilton where the rare “upgrade” is a standard room above the third floor and not looking at the hvac.
Devaluations for me are actually important for reasons noted in my comment above. At that point Hyatt becomes less a value to me at high end properties in comparing to FS or MO where I get better hotels with more perks.
I’m pretty sure the “curated meditations” he’s referring to are the free Headspace meditations available on the Hyatt app. If I recall correctly when that was introduced a year or two ago you got a small amount of Hyatt points for going through them. Now they’re just there all the time, probably being ignored by almost everyone.
As Jon Stewart once asked, “How far up your own rear end do you have to live in order to say something like that?” Typical let-them-eat-cake C-Suiter who thinks way too much of himself and his company. Don’t kid yourself, Hoppy … Hyatt ain’t THAT good, in fact most mainstream Hyatt properties are pretty middling within their price ranges. We are ONLY in this game because of WOH providing a decent bang for the buck. If you mess with the program let me assure you I have a list of non-chain properties longer than my arm that I would LOVE to stay at…
A decade ago I shared my business between Hilton, Marriot and Hyatt. I still have that triad but the order has reversed now that Hilton has Honor pesos and dinky breakfast credit. I almost stopped my Bonvoy credit card when I could no longer find a hotel I liked within the 35K limit for the annual free night. (Yes, I get about half of my points/nights through credit card spend.) I usually use my free night for a positioning stay at an airport hotel to get free parking.
Now nearly everyplace I want to use a card demands a 3% fee. I usually am able to get three cent a point value from Hyatt. If points are devalued, I will switch to debit card and forget loyalty. Before I got into the loyalty game I was enjoying VRBO. I think that will be my strategy if Hyatt devalues.
I go out of my way to stay at Hyatt for status. If they devalue, they won’t get my business.
I actually blame the government for this. Well, sorta, kinda. They have allowed so much consolidation in the travel sector that way too much power is consolidated with a few insanely large companies. How Marriott was allowed to swallow Starwood is beyond my comprehension. The corp is so big you have execs who literally don’t know what half of the 33 and growing brands actually are supposed to be and where they fit in the market.
Anyway, I am never going to be a Hyatt Globalist, but I have gotten tremendous value out of being a Hyatt Explorist. I’ll be off to Vienna soon and between points and free night certificates, I’ve got a week of three different properties with no cash outlay. I’m not big on aspirational travel, even though I get that’s why many of you follow blogs like this. I remembered discussing this with the head of a major organization of US travel agents last fall in the jacuzzi of the Grand Hyatt Kauai, apparently a big aspirational property on the island according to the gentleman (to be fair, my whole stay was on points). But if I can’t book hotels in Vienna for as little as 3,500 points and suddenly having a few hundred thousand Hyatt points makes me ‘a poor’ in the points game, then I too am done. I go out of my way to stay at Hyatt, which ain’t easy in Germany as you know (although adding Lindner as JdV helps a lot). And if all my stays at AmeriSuites … I mean old Hyatt Places in the USA don’t add up to anything; I am out.
Will this make Chase cards less valuable?
Totally with you, Matt. Without Hyatt Globalist status (free breakfast, free parking, etc.) the program is just warmed spit. Hint: Pick the program that works for you in that moment. We stayed for a week at the Park Hyatt Paris Vendome earlier this year because of Globalist. Juliet balcony and daily breakfast in bed. Splendid. Did someone say “curated meditations” ? Huh?
I’ve gone full feee agent. Having heard “no upgrades are available” for the last time, I gave up. Now I buy whatever room type I want at whatever property is convenient.
This is proof that the grass isn’t greener with Hyatt.
As Gary Leff is documenting over at View from the Wing, Hyatt brand standards have already eroded.
Hyatt is betting big on soft-brands like JDV and Unbound or leisure and all-inclusive resorts. They don’t see business travel returning to pre-pandemic. The U.S. economy is uncertain.
Meanwhile, Delta is taking the opposite view and is betting big on business travel or people traveling on other people’s money. They think enough customers will spending $35,000+ with Delta for the same status that they used to get at $15,000+ in spending.
Hyatt and Delta both can’t be right.
Hyatt is basically forgoing construction of new-build Hyatt Regency properties in North America. To me, that’s telling.
Hyatt needs to find a way to offer more benefits for leisure travelers while not devaluing the program for road warriors. Who is going to spend 60 nights a year at mostly Hyatt Place properties only to get cheated on breakfast or fall victim to Hyatt properties playing award-redemption games when they go to Europe with their wife for the one week of vacation?
If you “spend a lot of money” at Hyatt or Delta, then you should have no problem qualifying for status under their new terms. The truth is most people book cheap rooms/flights, max out on the free food, and expect to be treated like royalty for their very low margin leisure travel. Don’t make the mistake thinking that you’re irreplaceable. For every free agent leaving Hyatt, there’ll be a new free agent taking that room that they won’t need to dole out free breakfast and upgrades for. Meanwhile the lounges and upgrades will be much easier to get for the trueHVC’s.
I don’t agree…but we will see.
I had breakfast with the country manager for South Africa in Cape Town in May and complained about the Hyatt devaluations (Lifetime Globalist). I stayed in Hyatts (though more expensive option) because of the perks (remember the free bottle of wine and charcuterie?) and the Regency Club. I got the same message: young people want experiences, not amenities. But how many young people are actually loyal to Hyatt vs. us consultants?? I don’t think my message got through.
Young people don’t (just) want experiences. It’s amazing these Hyatt leaders keep buying their head in the sand.
Thanks Matthew! Let me join the VERY LOUD chorus here by screaming “ALL OUT” if your suspicions (which I believe are spot on) come to fruition. I’ve had some really wonderful experiences in Hyatt properties and found them to be more appreciative of my “loyalty” than Marriott (which I was painfully loyal to for decades) or Hilton. WoH is basically the only they have going for them as the physical plants are similar and grossly less numerous. So I will choose my Curated Meditations in other places………..and try to survive curating on my own.
Thanks Matthew! Let me join the VERY LOUD chorus here by screaming “ALL OUT” if your suspicions (which I believe are spot on) come to fruition. I’ve had some really wonderful experiences in Hyatt properties and found them to be more appreciative of my “loyalty” than Marriott (which I was painfully loyal to for decades) or Hilton. WoH is basically the only thing they have going for them as the physical plants are similar and grossly less numerous. So I will choose my Curated Meditations in other places………..and try to survive curating on my own.
Imo: Starwood was great at balancing rewards with loyalty…Hilton had a good program…Marriott always ran behind…each made promises, some kept, many broken.
Loyalty programs are, or should be recognized as a rebates on spending that offer opportunities for the occasional splurge opportunities. Most people staying in hotels do a mix of business and pleasure.
Regular customers are quick to realize when there is little perceived value and the corporate penny pinchers should know that customers will look elsewhere when that happens. Loyalty is a 2 way street, you earn it and can burn it…
Loyal customers cost less to retain than replace.
Corporate greed will alienate more than they can gain with “curated meditation”…
I joined Hyatt in 1987 and I have been a lifetime Globalist for many years. My status was obtained without a credit card, airline points etc. I have been extremely loyal to Hyatt and expect so in return. I do understand cycles but we seem to be at a reflection point where all travel incentives are being devalued.
Hyatt, please make these decisions very carefully. I am not the sort of member that will pick up my ball and go away. It is a matter if you will force me to do so.
Mathew, you are spot on. After a career of business travel and Covid, Hyatt downgraded my status. Sorry I didn’t quite make the lifetime mile criteria. After 40 years of loyalty, not feeling the love. Booked my last leisure vacation at the Ritz in Southbeach, FL Had a spectacular time.
I am lifetime plat at Marriott and have not stayed at a Marriott for 6 years. Why, because I feel that Hyatt has a better program. I think that Hyatt has some great properties and a fair rewards program. If they change it by devaluing points in favor of experience, they will lose my loyalty and I will use Airbnb where possible. I don’t require experiences.. but I do feel that loyalty is a two way street and points are tied to my loyalty
I’m lifetime Bonvoy Titanium by way of SPG. Pre-takeover I went out of my way to stay at SPG properties because the program was simply better for me. Since SPG got Bonvoyed, and Ti status is garbage, I’ve moved all stays to Hyatt. That often means driving miles out of my way and dealing with limited choices. Too frequently that means Hyatt Places while coworkers are staying at full service hotels.
Steering stays to Hyatt is a genuine hassle, and I am only doing it for future leisure stays at nice properties. To date, the juice has, mostly, been worth the squeeze. Dropping Hyatt would certainly simplify travel for me, so I have that silver lining if WoH goes full bonehead.
100% agree with everything you said. LT Diamond @ Hilton, Titanium/LT Platinum @ Bonvoy, Globalist Hyatt. If they start devaluing the points and remove the free breakfast I’m out. Marriott has a MUCH bigger footprint. I’d also suggest that it’s very sophomoric to separate Business/Leisure into different categories. My paid travel is business travel and my points redemptions are leisure but I’m the same traveller and want the same experiences.