The latest raft of “category changes” in the World of Hyatt program is brutal…there is no denying it…but in a world of inflation and demand exceeding supply, it is hard to fault Hyatt for tightening the screws. Even with the price hikes, World of Hyatt remains (in both objective and relative terms) an extremely valuable program.
World Of Hyatt 2023 Devaluation: Disappointment, But Not A Surprise
World of Hyatt divides its properties into eight categories (some all-inclusive resorts fall into thier own categories) in terms of redemption pricing. Earlier today, Hyatt revealed its annual category change adjustments for its portfolio of worldwide properties. This year:
- 214 hotels will move to a higher category
- 158 hotels will move to a lower category
(effective for booking made on or after 9:00 AM ET March 28, 2023)
Although that may sound balanced, let’s just say that generally speaking it is desirable properties going up in price and less desirable properties that may be dropping a category.
Here are a number of changes that caught my eye:
- North America
- Alila Marea Beach Resort Encinitas (7 to 8)
- Andaz 5th Avenue (6 to 7)
- Andaz San Diego (4 to 5) – no more free night cert
- Andaz West Hollywood (5 to 6)
- Chicago Athletic Association (4 to 5) – no more free night cert
- Carmel Valley Ranch (7 to 8)
- Grand Hyatt Kauai Resort & Spa (6 to 7)
- Grand Hyatt Vail (6 to 7)
- Hyatt Carmel Highlands (7 to 8)
- Hyatt Centric Key West (7 to 8)
- Hyatt Place Santa Barbara (5 to 6)
- Mar Monte (5 to 6)
- Park Hyatt Aviara (6 to 7)
- Park Hyatt Beaver Creek (7 to 8)
- The Eliza Jane (4 to 5) – no more free night cert
- The Lodge at Spruce Creek (7 to 8)
- The Seabird Resort (5 to 6)
- The Shay (5 to 6)
- Europe
- 7Pines Resort Sardinia (7 to 8)
- Andaz London Liverpool Street (5 to 6)
- Hôtel du Louvre (6 to 7)
- Hotel Martinez Cannes (7 to 8)
- Hyatt Paris Madeleine (6 to 7)
- Hyatt Regency Amsterdam (4 to 5) – no more free night cert
- Park Hyatt Vienna (6 to 7)
- Park Hyatt Zurich (7 to 8)
- Thompson Madrid (4 to 5) – no more free night cert
- Middle East / Africa
- Park Hyatt Dubai (5 to 6)
- Asia
- Grand Hyatt Bali (1 to 2)
- Grand Hyatt Erawan Bangkok (2 to 3)
- Grand Hyatt Jeju (4 to 5) – no more free night cert
- Grand Hyatt Seoul (4 to 5) – no more free night cert
- Hyatt Regency Bali (1 to 2)
- Park Hyatt Bangkok (5 to 6)
- Park Hyatt Saigon (4 to 5) – no more free night cert
- Viceroy Bali (7 to 8)
- Latin America
- Andaz Costa Rica Resort at Peninsula Papagayo (5 to 6)
- The Cape, a Thompson Hotel (6 to 7)
(you can review the full list here)
That’s a lot of new Category 8 properties (a new tier Hyatt added last year).
Devaluations stink. Many who have been saving for redemptions at particular properties may now be priced out. As is always the case, the better properties are going up in price while some of the more mediocre properties that you would be unlikely to redeem for in the first place are going down in price.
And a Category 6 Hyatt Place (Santa Barbra, CA)? Amazing.
But here’s why I’m not going to bitterly complain about this. First, we’ve seen creeping inflation across the economy. Heck, the obscenely generous wage packet Delta Air Lines pilots negotiated this week will push up prices even higher (and good for them, by the way). That’s just the nature of our economy right now.
From a more macro perspective, the good deals never last – that is why they are a good deal in the first place (usually a relative measure). We’d love the Park Hyatt Sydney to remain at 25,000 points per night forever or the Ventana Big Sur for 30,000 per night, but that was not possible. Too much demand.
Objectively, World of Hyatt still remains the most valuable hotel loyalty program. This devaluation does not change it.
CONCLUSION
Devaluations are never ideal, but we all could have predicted another rough year. At least you have the next four weeks to redeem your points at the old rate. Do so sooner rather retain later. I just booked my summer stay at the Park Hyatt Vienna.
image: Hyatt / Park Hyatt Vienna
I agree… It’s not a across the board devaluation to screw all members… more like very reasonable price adjustments on particular properties to better align the redemption rate to the actual avg nightly rate.
Hyatt Place (Santa Barbra, CA) at Cat 6 is outrages right??? I just checked a random date in June… it’s $615 a night standard rate including tax. over $600 a night at Hyatt Place of all things!!! That’s what we should be outraged about. Blame the inflation and revenge traveling public.. who are lining up to spend $600 a night at a limited service hotel. Too many people have too much money and too little brain. Hyatt is only trying to align the redemption rate to the avg nightly rate of given hotel. It’s only fair.
S.B will always be an outlier. It’s such a popular getaway destination for Angelenos AND limited as to how much more hotel construction can be done that it will always be off the deep end as to rates and redemptions. Even before Covid the FS (which still remains closed as to a dispute with Ty Warner) was often $1500 a night on many days. Rosewood the same. And both have trains running through the property! S.B. is never a good comparison. Bottom line is, as beautiful as it is, it should be avoided at all costs and the cost of a weekend there could easily be applied to a fantastic week or two somewhere else when the time permits.
I think it’s funny people would ever pay that much for that Hyatt Place in Santa Barbara considering its location and general condition when there are much better inns with much better locations for about half the cost. Even the Mar Monte would be better if you are insisting on staying at a Hyatt.
They are all charging insanely high rates for what you get. SB rates were always absurd – but really went ballistic during the pandemic. Bottom line is that people are paying insane amounts there and even lesser properties are getting the spillover from it.
Alternative narrative, Primary inflation may not be in fundamental economy but rather in points economy. Credit cards bloggers love to promote have flooded US-based customers with Hyatt points. Today’s devaluations are heavily skewed toward NA properties frequented by those credit cardholders. The biggest winner in this devaluation are the banks. You will need to use their cards to buy even more stuff to pay for that free hotel. Welcome to the hamster wheel; US edition
I don’t totally dismiss your point, but I don’t think we can blame Ben and Gary for these devaluations…anytime you can get more than three cents per point, it is bound to be adjusted.
. As is always the case, the better properties are going up in price while some of the more mediocre properties that you would be unlikely to redeem for in the first place are going up in price.”
I think you mean DOWN.
Indeed. Thanks!
Stayed a full week at the 7Pines Resort Sardinia last summer with my family on points. Absolutely stunning property, it had opened a few days before we arrived and we were the first ones to ever stay in our rooms. Best concierge I ever had from any hotel. My Globalist status got breakfast for all 4 of us for free otherwise it would be easily a €300 per day cost. I am not surprised to see it moving from Cat 7 to 8. Even at Cat 8 it is still an amazing value when compared to what you pay for other properties in Sardinia.
At the least rates are starting to drop a bit around the world at non-resort properties. I do see a leveling off of the insanity we saw last year. As well noticing city hotels (though it it is winter) are nowhere near as packed as last year. Some seem downright empty. So while the devaluations suck, at the least the days of having to pay $1000 a night in Chicago or Vienna at a luxury property seem to have finally subsided.
Accor points have been worth two cents since the days of Le Club Accor, they only devalue as much as the Euro does. And their hotels are absolutely everywhere (outside of the USA) and priced competitively with local alternatives (whereas the likes if Hyatt and Hilton are nearly always overpriced). Life’s too short to worry about upgrades to ‘superior rooms’ selling for $25 more than the cheapest rate.
Matthew, had an interesting development with my Hyatt account last week. I recently started travelling again last year and started from scratch with Hyatt again and missed Explorist by 2 nights.
Without any communication I was bumped up to Explorist last week after having 2 nights in Jan and a further 10 booked thru the end of April. Curiously the status says it’s valid until May 2023. Just wondered if there was a promotion that I missed or something you have heard happen before or if this is a mistake (I’m not complaining)
Major devaluations to the all-inclusive section, but honestly they’re fair because the old valuations were highway robbery — you could get a superb all inclusive for ~20K points a night with the old tiers.