[GONE] Costco selling Hyatt Check Certificates (Not Applicable to Pre-paid Rates)
Dec 8, 2009, 10:44 am
#76
Join Date: Apr 2004
Location: Sunny Florida
Programs: Hyatt Courtesy Card, CO Gold, Hertz President's Circle, Amex Centurion and its perks...
Posts: 369
Ok. This is what I figured out.
Let's say as a diamond, I spend at least $2500 a year at Hyatt worldwide ( 25 nights) .
With a 5% annual discount rate, 5% - in 1 year; 10.25% - in 2 years; 15.76%- in 3 years
I should buy at least $2500 *3 = $7500 of this and save (NPV):
1st year $500- 2500*5%= $375
2nd year $500-$2500*10.25% = $244
3rd year $500-$2500*15.76%=$106
Total: $850
Let's say as a diamond, I spend at least $2500 a year at Hyatt worldwide ( 25 nights) .
With a 5% annual discount rate, 5% - in 1 year; 10.25% - in 2 years; 15.76%- in 3 years
I should buy at least $2500 *3 = $7500 of this and save (NPV):
1st year $500- 2500*5%= $375
2nd year $500-$2500*10.25% = $244
3rd year $500-$2500*15.76%=$106
Total: $850
Thanks.
Dec 8, 2009, 11:45 am
#77
Join Date: Jan 2002
Location: Seattle, WA
Programs: AS MVPG, Hyatt Discoverist, Hilton Gold
Posts: 3,399
I wouldn't worry about it too much. It has to do with the time value of money and alternative investment returns. Just buy the gift cards if you feel the savings are worth the upfront costs.
Dec 8, 2009, 11:58 am
#78
Join Date: Mar 2005
Posts: 183
Ok. This is what I figured out.
Let's say as a diamond, I spend at least $2500 a year at Hyatt worldwide ( 25 nights) .
With a 5% annual discount rate, 5% - in 1 year; 10.25% - in 2 years; 15.76%- in 3 years
I should buy at least $2500 *3 = $7500 of this and save (NPV):
1st year $500- 2500*5%= $375
2nd year $500-$2500*10.25% = $244
3rd year $500-$2500*15.76%=$106
Total: $850
Let's say as a diamond, I spend at least $2500 a year at Hyatt worldwide ( 25 nights) .
With a 5% annual discount rate, 5% - in 1 year; 10.25% - in 2 years; 15.76%- in 3 years
I should buy at least $2500 *3 = $7500 of this and save (NPV):
1st year $500- 2500*5%= $375
2nd year $500-$2500*10.25% = $244
3rd year $500-$2500*15.76%=$106
Total: $850
So the "true" savings is $850, based on his assumptions. Hope this helps
Dec 8, 2009, 12:12 pm
#79
Join Date: Nov 2002
Location: SEA
Programs: SPG Lifetime PP ; Hyatt Globalist ; Nexus
Posts: 950
Well, if it's a $80 bill, you may just considering having some incidnetal charges. In my case, the bill is usually a few hundred dollars. Besides, since it's transferable, you can also pay for others or even trade at CC.
To jummychang and others figuring this down to the finest points, keep in mind that in many cases, this won't be 20% off your bill, but $10 off - of the one $50 cert you use - say, on an $80 bill. Conversely, if you use two certs on an $80 bill, you lose the markdown of the last $20, as illustrated above. The certs are still nothing to sneeze at, and I'm headed over to pick up some. Wish I'd seen this before my last MR, in which I tried to use the gift card at the Hyatt Places...
Dec 8, 2009, 1:41 pm
#80
Join Date: May 2008
Location: New Jersey
Programs: UA GS 1.7MM, Hyatt Lifetime Glob, Marriott Titanium/Lifetime Platinum
Posts: 1,272
I didn't see Caribbean properties on the list. Am I missing something? I have a reward reservation planned in Aruba and could use 20% savings on meals and other charges (which, I assume, the certificates could be used for).
Edit: I see that Bridgewater, NJ has the certificates. Nice!
Edit: I see that Bridgewater, NJ has the certificates. Nice!
Dec 8, 2009, 2:20 pm
#81
Join Date: Jun 2005
Posts: 538
To jummychang
Peter, I strongly believe you'll find other things at Costco that appeal. I wouldn't go into them for years, not least because I don't need a closetful of toilet paper or 10 lbs of ground chuck etc. - and without going in for that reason, I just assumed their quality had to be bad, too. Then my son turned me on to them, and their quality (their "Kirkland" brand) turns out to be surprisingly good, IMO. To say nothing of the prices even on things that don't require you to buy a houseful. (All this said, brother still won't go into them because they're intimidating and maybe anti-union.)
...not to take this off on an OT tangent, and I'm not a shill for them.
Peter, I strongly believe you'll find other things at Costco that appeal. I wouldn't go into them for years, not least because I don't need a closetful of toilet paper or 10 lbs of ground chuck etc. - and without going in for that reason, I just assumed their quality had to be bad, too. Then my son turned me on to them, and their quality (their "Kirkland" brand) turns out to be surprisingly good, IMO. To say nothing of the prices even on things that don't require you to buy a houseful. (All this said, brother still won't go into them because they're intimidating and maybe anti-union.)
...not to take this off on an OT tangent, and I'm not a shill for them.
Part of the reason for this is their CEO, Jim Sinegal is model for ethical business practices. Costco is highly profitable, but they have been criticized by some analysts for paying their employees too much. I guess some analysts feel that if Costco paid Walmart style wages, they could be even more profitable. Sinegal, in addition to noting that treating his employees well is the right thing to do, has also noted that dividends of having a happy workforce ultimately has very positive effects on the bottom line.
http://www.fastcompany.com/magazine/...e-big-box.html
Dec 8, 2009, 2:46 pm
#82
Join Date: Nov 2002
Location: SEA
Programs: SPG Lifetime PP ; Hyatt Globalist ; Nexus
Posts: 950
Just bought all the stock they have in my local Costco ( 19 of those but 150 on order).
2 findings: 1. NO SALES TAX ( I'm in WA, the tax would be 9.5%) 2. It's eligible for 2% Costco Executive rebate ( Executive is only $50 more than the standard one)
What a deal!
2 findings: 1. NO SALES TAX ( I'm in WA, the tax would be 9.5%) 2. It's eligible for 2% Costco Executive rebate ( Executive is only $50 more than the standard one)
What a deal!
Dec 8, 2009, 3:38 pm
#83
Join Date: Mar 2008
Location: DCA
Programs: DL Silver, HH Gold, PC Plat, Marriott Silver
Posts: 420
Great point on the 2% Executive rebate sweetens the pot even more!
Dec 8, 2009, 4:23 pm
#84
Join Date: Feb 2000
Location: San Francisco (Marin County), CA
Programs: UA Global Services, AA Lifetime ExecPlat, LH HON Circle, SQ PPS Solitaire, Hyatt Courtesy Card
Posts: 3,002
Bought $5,000 last night at Costco in Novato, Ca and they had plenty more on hand.
Great thread, many thanks. ^
Great thread, many thanks. ^
Dec 8, 2009, 4:38 pm
#85
Join Date: Jul 2005
Location: Saigon/Hanoi/San Francisco
Posts: 1,779
When I called the Costco in San Francisco (10th St). They had 700 of these in stock.
Dec 8, 2009, 5:01 pm
#86
Moderator: GLBT Travelers & Hyatt Gold Passport
Join Date: Jan 2000
Location: CVG
Posts: 15,300
With these kind of numbers ($70,000 face value in certs at one store alone), I really wonder how much Hyatt is getting for each $100 in certs (certainly less than $80 since that is what Costco is chargning) but how much less is the question.
Dec 8, 2009, 5:39 pm
#87
Join Date: Jan 2002
Location: Indianapolis, IN
Posts: 52
My Costco membership expired last week. I told my wife we should not renew as they only take Amex and we should concentrate on using our new BA Chase Visa cards (from Miles Buzz). I say we will buy shopping cards with our Visa at Walmart and use them at Sam's Club instead of going to Costco. First 2K on hers now and then in January all on mine so we could hit the 30K for a free (+taxes and fees) companion ticket thanks to my company letting me use my personal CC for business travel.
So today I read this thread and have two business stays at Hyatt's later this week. The savings will pay for my Costco membership. I call the local Costco (Castleton, IN). They say they have 50 in stock. I have to give them the stock number at the checkout as they don't have the display up yet. I purchased five and told them not to put up the display as I will be back to buy some more!
Used my Starwood Amex.Thanks Flyertalk.
So today I read this thread and have two business stays at Hyatt's later this week. The savings will pay for my Costco membership. I call the local Costco (Castleton, IN). They say they have 50 in stock. I have to give them the stock number at the checkout as they don't have the display up yet. I purchased five and told them not to put up the display as I will be back to buy some more!
Used my Starwood Amex.Thanks Flyertalk.
Dec 8, 2009, 5:55 pm
#88
Join Date: Nov 2002
Location: SEA
Programs: SPG Lifetime PP ; Hyatt Globalist ; Nexus
Posts: 950
It's more a way for them to generate cash or to hit an year end sales goal.
Dec 8, 2009, 5:58 pm
#90
Join Date: Jan 2006
Location: FAT
Programs: AA mm, Hilton Dime, Hyatt Xpl.& PC Plat, Miracle Fruit-su club
Posts: 1,694
Let the games begin...
OK, Who is going to buy AMEX gift cards with their shiny new BA Visa to buy Hyatt gift cards at Costco? Seems a certain Points Wizard blogged about an offer on Nov. 16, and they're offering 2-day air for $5.95. Time to transfer some credit line over?
And they say this game isn't as fun as it used to be? (at least until the Visa bill comes due).
P.S. Good thing my Wife is the only one in my family who got the BA Visa.
And they say this game isn't as fun as it used to be? (at least until the Visa bill comes due).
P.S. Good thing my Wife is the only one in my family who got the BA Visa.
Last edited by jumpdogjump; Dec 8, 2009 at 6:29 pm