Originally Posted by
tth6133
Your Cat 2 hotels would cost 10k per night in the "Moderate" tier in the new award chart. Let's say you would have earned 2k (or its cash equivalent from a referral site) for a paid night, the total real cost should be around 12k. If you've getting 3.12¢/pt for you stays, that translates into $374.40 per night? Is that still a good deal? It may be for some Cat 2 Hyatt, but not generally, IMO.
I agree opportunity cost matters when deciding whether cash or points is the better deal. But I was describing “cash saved” vs the rate I would otherwise pay, not an all-in net value after foregone points and any rebates. And opportunity cost applies under the current chart too, so it doesn’t materially change a “today vs new chart” comparison unless Hyatt changes earning rates.
Also, the $/night implied by your math depends entirely on which tier ends up being used on those dates. Assuming “Moderate” (10k) as the default for Cat 2 - or assuming most desirable properties will sit at the top tiers most of the year - is still speculation.
More broadly, my example was also meant as a response to the idea that “real-world redemptions” are basically only Cat 7/8 at the highest tiers. Many members redeem in lower/mid categories because availability is broader and value can be repeatable. And opportunity cost applies to those top-end Cat 7/8 redemptions as well - you’re still forgoing the points you’d earn on a paid stay either way.
As a real-world data point, only 1 of my 10 award bookings this year was at peak pricing; the other 9 weren’t, even though those properties could have priced them as peak under the current chart.