FlyerTalk Forums - View Single Post - Hyatt introduces Off-Peak, Standard and Peak awards (26 Oct 2021)
Old Oct 14, 2021, 10:24 am
  #326  
Matt4200
 
Join Date: Sep 2019
Location: Los Angeles
Programs: Hyatt Globalist, Hilton Diamond
Posts: 4,685
Originally Posted by GUWonder
I wouldn’t be surprised if this new redemption scheme from Hyatt is aiming to reduce Hyatt’s cost per point redeemed by about 10-20% over even 2020.

And then going forward this same multi-pricing scheme within each hotel category will be used to drive even further devaluation of the points in customer accounts as and when hotel occupancy levels return to pre-pandemic levels.

My expectation is that by some point in 2023, on average this Hyatt change will amount to c. 30% reduction from the 2019 value that a Hyatt program member gets out of a point redeemed.

This new Hyatt redemption scheme is a sign to me that Hyatt points are no longer going to be the kind of good long term store of value that they had been. Between the coming devaluation(s) from this new redemption scheme and my loss of confidence in Hyatt points being a good long term store of value, my approach to Hyatt will be like my approach to Delta. What do I mean by that? Status matters (more than the points), and the service may be more consistent than with the others; but the points in the program are like smoke and mirrors in a way that isn’t as applicable to a cash back feature from a product/program that is more merchant brand neutral.
As long as Hyatt offers any type of points rebate whether that’s 1 quarter, 2 quarters, 3 quarters or 4 quarters a year that will balance out the differential.

You haven’t even seen the rollout yet so you haven’t seen how the balance of Off Peak will happen.

I’d agree as I’m sure anyone else here would that it is a devaluation, how much of one is to be determined.

The only thing I really dislike is the implementation date of March because you could be hit severely if a property increases in category and is considered Peak.

I will say something I find disappointing though - Properties I’ve stayed at during specific Off Peak dates in 2018, 2019, 2020 and 2021 their new pricing for these same Off Peak dates is over 50% more along with other properties nearby. So that’s not a good thing as I believe the franchisees are increasing those prices to get a Peak designation, despite those dates traditionally being Off Peak. Which is very disappointing.

Is anyone else noticing this pattern? (The area in my situation is Dallas).
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