Originally Posted by
MSPeconomist
Do hotels get paid more for award stays at Peak and less for Off-Peak? Or are the rates WOH pays for our award stays unchanged, and presumably pretty minimal except when the hotel is fairly full? [I know this is how SPG did it and I always assumed that Hyatt has a similar policy. It incentivizes hotels to make rooms available for awards and not to fell unhappy about potentially losing a lot of revenue when we redeem free nights.]
Hyatt’s payment structure to contracted hotels is the same whether Hyatt charges 8k points for the hotel or 15k points for the hotel. When the hotels are very full, the hotel gets a lot more money for the award night than when the hotel is empty. But there is a floor to the amounts that hotels get paid (by Hyatt) for any given award night.