Originally Posted by
IAD_flyer
I guess what I don't understand is that most full-service Hyatt's are directly managed by Hyatt and not franchised. This gaming seems to occur whether or not the properties are franchised. Are the GMs of non-franchised properties (so a direct Hyatt employee) more likely to bow to the owner's preferences than Hyatt? Or am I completely misunderstanding the dynamics?
Originally Posted by
Kacee
I suspect the answer is that, regardless of ownership, GMs are judged first and foremost based on the property's financial performance. Further, Hyatt has an asset-lite strategy, and will often own properties only temporarily, with the goal of selling to a buyer who will retain Hyatt management. In this circumstance there is particular incentive to bump the property's revenue numbers.
One large issue I see though that no one is addressing in regards to Award bookings in these mega demand properties is -
Hyatt will reimburse these properties close to the Member Rate if they are at 90% or more capacity, at least this has always been my understanding. Not sure if it’s the Member rate for that day or the ADR, but either way it’s almost full compensation.
So if it’s truly a Mega High Demand property where it’s near capacity most of the year then having more award bookings would actually help them as they’d then be getting more revenue reimbursement from Hyatt.
Again though this would only apply to properties with anticipated capacity of 90% or more and fulfill those rooms.
I’m wondering then what percentage of rooms are classified as Standard Rooms, and does Hyatt have a minimum percentage, if so what is it? (If there was a minimum percentage I would guess 20%-30%).
This will not remain true in 2023. Ventana won't be able to maintain full occupancy at 45k points per night. We are already seeing 45k availability appear this autumn.
Even at 40k (Standard) it’s not appealing I suspect in 2023 there will be loads of availability after the novice wears off and you’ll see more Off Peak availability late 2023 and early 2024 which will get booked up.