Worst part oft he BIG devaluation: Point upgrades to Club rooms/Suites
Jan 7, 2014, 3:36 am
#1
Original Poster
Join Date: Sep 2004
Location: Southern Bavaria, Germany
Programs: LH Blue, BA Blue, Hyatt Gold
Posts: 1,517
Worst part oft he BIG devaluation: Point upgrades to Club rooms/Suites
My 
for the BIG devaluation of the Hyatt Gold Passport points.
Besides some changes in the reward structure the point upgrades to Club rooms and Suites nearly have been axed.
If you have a look here:
http://www.hyatt.com/gp/en/awards/hyatt_upgrade.jsp
You will see:
Club upselling is 3,000 points per night instead of a total of 3,000 points for up to 4 nights. This exactly is a devaluation of 75 %!
Similar the Suite Upgrade:
The upselling to the suite requires 24,000 points instead of 6,000 points for a 4 nights stay.
The corresponding devaluation for a two nights stay is 50 %. A bisection of the value.
Therefore my question:
Has Hyatt's management lost the plot?
Why do they axe the Unique Selling Proposition respectively the best feature of their loyalty programme?
for the BIG devaluation of the Hyatt Gold Passport points. Besides some changes in the reward structure the point upgrades to Club rooms and Suites nearly have been axed.
If you have a look here:
http://www.hyatt.com/gp/en/awards/hyatt_upgrade.jsp
You will see:
Club upselling is 3,000 points per night instead of a total of 3,000 points for up to 4 nights. This exactly is a devaluation of 75 %!
Similar the Suite Upgrade:
The upselling to the suite requires 24,000 points instead of 6,000 points for a 4 nights stay.
The corresponding devaluation for a two nights stay is 50 %. A bisection of the value.
Therefore my question:
Has Hyatt's management lost the plot?
Why do they axe the Unique Selling Proposition respectively the best feature of their loyalty programme?
Jan 7, 2014, 4:14 am
#2
Suspended
Join Date: Aug 2008
Programs: Everything is refundable
Posts: 3,727
In your case, Southern Bavaria seems to equal a location ´hinter den Bergen´
You are absolutely right with your points, but all of them have been discussed multiple times already.
There is no doubt that Hyatt GPP has lost some of the most rewarding perks.
It remains to be seen, if Hyatt will lose out in the process.
Industry leading giants like Lufthansa or Delta get away with some not so subtle tweaks, but a minor player like Hyatt should have more problems...
Another major concern for me, Hyatt had the best loyalty scheme in the market and a pretty unique position a bit more upscale than most competitors fighting for the same set of customers, simply due to better hotels. The quality at many hotels went down the drain in recent years, most of the lounges are just standard fare, so for me personally, the reasons to book a Hyatt are not as obvious as they used to be.
And then places like the former Domhotel in Cologne or the Wasserturm (SLH) are all of a sudden booked and confirmed, same with Amsterdam, the Andaz is too expensive and nothing really special, Starwood competes hard and all of a sudden Hyatt lost 50 nights over the last two years in just two cities...
But apparently, there are enough customers compensating the loss of revenue from my part.
You are absolutely right with your points, but all of them have been discussed multiple times already.
There is no doubt that Hyatt GPP has lost some of the most rewarding perks.
It remains to be seen, if Hyatt will lose out in the process.
Industry leading giants like Lufthansa or Delta get away with some not so subtle tweaks, but a minor player like Hyatt should have more problems...
Another major concern for me, Hyatt had the best loyalty scheme in the market and a pretty unique position a bit more upscale than most competitors fighting for the same set of customers, simply due to better hotels. The quality at many hotels went down the drain in recent years, most of the lounges are just standard fare, so for me personally, the reasons to book a Hyatt are not as obvious as they used to be.
And then places like the former Domhotel in Cologne or the Wasserturm (SLH) are all of a sudden booked and confirmed, same with Amsterdam, the Andaz is too expensive and nothing really special, Starwood competes hard and all of a sudden Hyatt lost 50 nights over the last two years in just two cities...
But apparently, there are enough customers compensating the loss of revenue from my part.
Jan 7, 2014, 4:47 am
#3
Original Poster
Join Date: Sep 2004
Location: Southern Bavaria, Germany
Programs: LH Blue, BA Blue, Hyatt Gold
Posts: 1,517
In your case, Southern Bavaria seems to equal a location ´hinter den Bergen´
You are absolutely right with your points, but all of them have been discussed multiple times already.
There is no doubt that Hyatt GPP has lost some of the most rewarding perks.
[...]
But apparently, there are enough customers compensating the loss of revenue from my part.
You are absolutely right with your points, but all of them have been discussed multiple times already.
There is no doubt that Hyatt GPP has lost some of the most rewarding perks.
[...]
But apparently, there are enough customers compensating the loss of revenue from my part.
I have a completely different approach concerning the idea of alluring customers and rewarding their loyalty.
I was (and I am) really astonished about the massive impact of the devaluation. A devaluation of 75 % is a measure which an industry leading giant like Lufthansa would never implement.
I don't know how much you value your LH Miles respectively the Hyatt points. But I think the original value is a tiny percentage. And slashing this is nearly like disestablishing the point collection in total.
BTW I have to accept that in that case I am living 'hinter den Bergen'.
Will be interesting to see if the customers will accept that.
So an extensive look on the investor relations homepage of Hyatt after the next quarter is recommended. :-:
Jan 7, 2014, 5:27 am
#4
Join Date: Jul 2010
Location: Between AMS and BRU
Posts: 8,852
I've never found the benefit particularly usefull, even though I've used it a few times.... Since in a lot of cases you could only use the point upgrades with rates that were far higher than could be had otherwise. Making it a rather expensive upgrade.
Jan 7, 2014, 6:27 am
#5
Original Poster
Join Date: Sep 2004
Location: Southern Bavaria, Germany
Programs: LH Blue, BA Blue, Hyatt Gold
Posts: 1,517
It depends on the property.
I have had both: The nearly rubbish experience at a hotel till now offering a slightly larger room as suite upgrade (often discussed by fellow FTers) up to really high class upgrades.
Just remembering one Club upgrade boosting the experience to the higher than the 80th floor instead of getting a standard room anywhere between the 50s or 60s or 70s floors.
Or the nice view of Cologne cathedral. I am convinced that I wouldnÄt have bought this for something like the full suite or any reduced suite price.
If I add the difference between a reduced rate and the needed rate and the points value this has been really great value. And one unique feature of the hotel loyalty programme.
It was really able to keep people loyal. Especially in a time and country where Hyatt didn't offer any opportunities to collect points with credit cards.
So what do you think:
What would be the fair point value for a Club upgrade and the Suite upgrade?
I have had both: The nearly rubbish experience at a hotel till now offering a slightly larger room as suite upgrade (often discussed by fellow FTers) up to really high class upgrades.
Just remembering one Club upgrade boosting the experience to the higher than the 80th floor instead of getting a standard room anywhere between the 50s or 60s or 70s floors.
Or the nice view of Cologne cathedral. I am convinced that I wouldnÄt have bought this for something like the full suite or any reduced suite price.
If I add the difference between a reduced rate and the needed rate and the points value this has been really great value. And one unique feature of the hotel loyalty programme.
It was really able to keep people loyal. Especially in a time and country where Hyatt didn't offer any opportunities to collect points with credit cards.
So what do you think:
What would be the fair point value for a Club upgrade and the Suite upgrade?