If it was all automatic it may not be as effective from an ROI perspective. As you eluded, it does cost money. Indirect or directly. The purpose of promotions is to increase return for the company. Same as marketing.
So as a business why sign every one up? It doesn't make a whole lot of sense. Its like coupons. Those who value the saving will take advatage of it and if its significant enough will result in thier business. Perhaps even longer term.
But for those who don't think its worth the time to cut the coupons, or stay on top of promotions, they may just buy or stay due to the value in the product itself.
By leaving it in the current manner it enables those who value the points with more than they would likely get if everyone received them automatically.
So it works well with me in the current system.
Originally Posted by kevino
"First, it is open to every GP member and doesn't require registration (unlike UA 1,500 miles, which, BTW, posted w/o problem). So why does it rely upon property input?"
The large majority of guests don't know about the bonuses. So, Hyatt saves a lot of points and money by not doing it automatically. Ask any desk clerk who has been around 5-10 years what percent of guests ask for a particular G1, G2, or G3 bonus and the answers you get will vary from 5% to 40%. A lot of guests don't even have a Gold passport account! And during Faster Free Night promos, a lot of guests don't pay with a MasterCard.