Hyatt may be hemorrhaging elite members, but that has not stopped the hotel chain from committing one of the biggest cardinal sins in loyalty: essentially a no-notice devaluation.
At 9:01pm CT On January 31, 2018, two hotels changed categories. Strangely, Hyatt provided only seven hours of notice.
- Hyatt Place Knoxville/ Downtown – Category 1 to Category 2
- Hyatt House Washington DC/ The Wharf – Category 2 to Category 3
And my question is…why?
Two lower-tier hotels that Hyatt forgot to change with a handful of others last month (where at least we were give 48 hours of notice…)? We’re not talking about a newly remodeled hotel changing several category levels. Instead, we are talking about the most minor of changes. Really, did someone simply wake up and say, “Let’s make World of Hyatt members angry today?”
The problem is rarely the actual devaluation, but how it is communicated. Hyatt faces a trust deficit with their members right now and has failed at the most elementary level to realize that no-notice program changes are counterproductive.
CONCLUSION
I try to give Hyatt the benefit of the doubt whenever possible. I fairly reported a couple days ago on my Hyatt Concierge experience. But I simply cannot understand the logic behind Hyatt’s latest no-notice devaluation of two hotels.
This was why I left after a long standing Hyatt Diamond / Globalist.
I thanked My Hyatt Concierge after many years of service and said good-bye.
They’ll have to do some drastic things to win me back.
The HP Knoxville opened just last month in a historic building, originally the Farrgut Hotel built in 1919. IMO, the Cat 1 was great for a downtown location, walkable to most every business and the university and 30 mins drive to the Great Smoky Mountains. It deserves a Cat 2 and I would not be surprised if Hyatt raises it to a Cat 3 in the future, especially if the occupancy rate remains high. I agree with the main point that there should have been a longer lead time from Hyatt before changing categories.
Matthew: I have to applaud you for being brave. You are loyal to United and Hyatt. Unfortunately there couldn’t be a worst combination in terms of caring less about their customers. If you add them up you get a negative number in terms of loyalty to elite members. Although all Us loyalty programs are disgraceful I still think combination of Delta + SPG = winner!!!!
I am sincerely baffled by the love of Hyatt’s with all of the blogs. They have a limited footprint and I feel are higher priced than the competition.
They are and I agree, but I have to say that their loyalty program (was) one of the best. Confirmed suite upgrades could last up to a month if you play your cards right (no one else confirms that many nights guaranteed for so few nights stayed). IHG Spire Royal Ambassadors don’t even get free breakfast, Marriott Platinums don’t have a guaranteed checkout of 4PM even after they spend 75 nights (each) with these chains – Hyatt includes both. That’s the infatuation, and now that they offer unlimited free upgrades at checkin (matching Hilton and more importantly SPG), who can beat the program as written (practice is a different story)?
As someone who lives in Knoxville, I’d expected a devaluation on the new HP, but had also expected substantial notice beforehand. The prices have been $130-350 per night over the next year, so level 1 seemed unlikely to continue. It’s also just over an hour to the Great Smokey Mountains National Park, which is the most visited in the country. That makes the hotel even more valuable. Nonetheless, this seems yet another show of bad faith on the part of Hyatt. I’ve enjoyed Diamond and Globalist status for some years, but I think it unlikely that I’ll be renewing.
Matthew,
I suspect in order we will see multiple posts here arguing that your being petty and that this is a small things which should be ignored.
Ignore them. Your once again spot on. It’s not the change that is at issue but rather how poorly it was communicated. Especially at a time when their loyalty program is obviously not doing well.
When the blogs caught on to this Hyatt should have apologized and delayed the change an appropriate period of time. That they didn’t shows they still just don’t get it.
Shouldn’t have wasted my time reading. Who cares about these lower properties – they aren’t even worth thinking about. Blog when they sneak rate increases at the Park Hyatt Mendoza or Park Hyatt Siam Reap.
I’m more concerned about the introduction of “Destination Fees” at Hyatt properties:
https://www.flyertalk.com/forum/hyatt-world-hyatt/1891766-destination-fee-starting-nygh.html
Have to chime in – all – that’s ALL so called loyalty programs are awful. I’m hovering between Silver and Gold “Lifetime” status with Marriott but after several bad experiences, have not attempted to obtain Gold – even though it would only take around 60 nights… same with SPG since Marriott bought Starwood (don’t get the pra ise for SPG).
Have Hyatt Globalist and chime agreement – they need to up their game. Same with Hilton.
Don’t get me wrong, I enjoy staying at Hyatt and Hilton – Both generally treat me quite well. I generally get upgrades at both.
I simply think that all of the hotel groups need to reassess and reorchestrate their loyalty programs. They’re all in need of huge refurbishment. If you’re going to have a loyalty program and over promise, then you need to come through. If not, why have the programs to begin with?