Originally Posted by
GUWonder
Speculation? Sinister? Profit-maximization by attempting to reduce costs is business as usual in the industry, including by considering the loyalty program aspect of it. Expecting Hyatt to maintain being different at this point is expecting a bit too much and then some, when it comes to the direction of award night pricing and internally-funded and/or franchise partner-funded promos.
I don't think anyone expects them to be different. They are obviously adding peak pricing to benefit themselves. Not sure what you're replying to here. As noted in my previous posts, peak pricing enables Hyatt to circulate more points (which must be true for their WoH deferred revenue liability to grow faster than their top line, unless they expect the value of WoH points to actually grow). Redemption point price does not in any way impact how much a hotel is compensated and the amount Hyatt has to pay in aggregate is expected to actually increase.
Originally Posted by
GUWonder
Promos funded by Hyatt and/or particular Hyatt hotels (or groups of Hyatt hotels) is not the same thing as promos funded by a credit card partner.
Ok, and I am asking you for evidence or a source that this promo was sponsored by Chase.
Originally Posted by
GUWonder
And decision-drivers for Hyatt or other major hotel companies is not a perfect copy of the decision-drivers at the bank partners for a hotel loyalty program. To expect things to play out differently with Hyatt over the longer term is like expecting the Brooklyn Bridge to be for sale -- just not realistic anytime soon or even later.
No one claimed otherwise. Not even sure what you're replying to lol.
Originally Posted by
GUWonder
Trying to delay/push costs out over a targeted horizon is also away of reducing costs in the short term, and its part of the games corporate management plays that have an impact on their more internal audiences, their less internal audiences, and their external audiences. Typical corporate behavior in this industry.
I don't understand what you're saying here and this seems to conflict with the innate idea of the purpose of promotions to begin with. Why do hotel companies run promos? Simply put I believe it is to increase occupancy because occupancy levels are the core value proposition Hyatt delivers to its franchisee partners. I find it very difficult to believe Hyatt would be willing to undercut that, especially now because "having a promotion that encourages award stays before the new award pricing scheme hits would run counter to that corporate objective" of being "eager to cut its costs for payouts to the hotels for awards stays". This is especially true as peak pricing does little to actually cut costs for Hyatt. If Hyatt doesn't run a promo (or runs a weak promo) it will be a result of occupancy not demanding the need for one, not because they are trying to play games with redemptions IMO.