Originally Posted by GUWonder

As the hotel point devaluations get worse, the major hotel loyalty programs seem to migrate toward getting in the business of selling high elite tier status via higher fee credit card products. Marriott sells Platinum this way; Hilton sells Platinum this way; and IHG sells Platinum (but that’s on a cheaper card and doesn’t provide Marriott Platinum and even Hilton Gold level benefits). I would not be surprised if Hyatt also gets into that high elite status credit card game.

At the point when the rebate currency stops being a big draw and becomes closer to being a joke, the Joker card to be played by the loyalty program operators in this space is the draw of elite status. For me, Hyatt is no longer as much the exception and exceptional leader in the space as it used to be.

The combination of lower value to be gotten from redeeming points and the relatively high number of nights required to get valuable elite status benefits makes for a headwind. And while the headwind doesn’t count for as much when the “others are worse”, it’s still a tailwind toward increased free agency and more mercenary approach toward program engagement.