Consequence of Hyatt Devaluation: Commitments to Take our Business Elsewhere
 

I was a Hyatt Diamond from 1999 to around 2003, and loved the Gold Passport program. Great properties, service and promotions. I accumulated several hundred thousand points--most unredeemed until now.

Client work then took me to locations where there were no Hyatts. I switched to Hilton and Marriott, and have retained top elite in both of those programs for several years.

Hilton's recent devaluation, occurring right in the thick of the recession, significantly devalued my 1 million plus points. I decided to look for a new program, and was getting ready to switch to Hyatt any day now after staying sufficient nights at Hilton’s this year to retain my Diamonds status while I burn though my points this year and next.

Today's decision to devalue the Hyatt program again (I already lost about 20% from the prior devaluation) made me realize that Hyatt's management is no better than Hilton's, so I shall not be giving any future revenue business to Hyatt. Unfortunately, with all my travel committed through April next year--I will not even be able to burn off my existing points because of the very short notice given.

If you too believe that devaluing Hyatt points in the midst of a recession on top of another recent devaluation is unacceptable and you want to vote with your feet--I suggest switching to Marriott Rewards. While InterContinental’s Priority Club made a play for the Hilton's top customers through it "Biggest Loser" promotion, I do not feel that their high or low end properties are compatible with the quality we frequent travelers expect from chain loyalty programs.

PS Expect another more biting Hyatt devaluation in the near future. Credit card points make the corporation rich--but result in far too many points chasing too few hotel rooms....

I wasn't aware Hyatt devalued the program recently, but I only started regularly staying at Hyatts roughly 2 years ago. When did this last devaluation occur?

For me, I'm not thrilled with Marriott's program as it requires 75 nights to reach platinum status. Also, from an earning/redemption perspective, I don't see much difference between Marriott (40K points for top tier hotel nights) and the newly devalued Hyatt program (22K points for top tier hotel nights), especially considering the GP program offers a wide variety of bonus point (and free night) promotions. I guess what remains to be seen is if Hyatt is as liberal with promotions moving forward as they have been in the past.

I'm not thrilled about the devaluation. I think the devaluations in properties (mostly tier 2 to tier 1) is really just window dressing, and won't have any real effect to 90% of Hyatt members.

That being said, I think that if they continue being generous with FFN and BWB type free nights then my stays won't change. If they do tinker with those free nights, then that would cause me to largely abandon Hyatt.

PC has been quite good to me of late, and as a result are getting most of my business. Even when I've tried to give Hyatt money this month, I was mostly stymied. (BKK protests, which they didn't have control of, certainly.)

devaluation :td: but still hyatt is ^
i may consider if they won't let me redeem FFN/NBT/BWB for cat 6.
points don't mean anything compare to free nights!

I'm disappointed but I was expecting it. Additionally it's less severe than anticipated. Hyatt is my number 1 choice and it will be remain so.

I enjoy Diamond benefits. I got suites upgrade more often than other chains. BTW I'm SPG Platinum, HH Diamond and MR Platinum.

P.S. The periodic devaluation is part of life.

Bye, Bye, OP.

I'm with the rest, if the program stays largely the same -- as I expect -- then my travel patterns will not alter.

Hyatt's promos are much better than Marriott's, esp. the FFNs. Marriott doesn't have anything like that. And IIRC, Marriott's travel packages used to be a significantally better deal, but the points needed were raised substantially.
In addition, for those who don't travel as much, Hyatt's elite levels are easier to get.

As someone who pays for travel all out-of-pocket, Hyatts and IC (I'm okay "slumming" it. :) ) help me get the most for my money.

As most longtime forum participants know - I'm a big fan of Hyatt but am also far from an apologist with calling them out on various issues (from the former service issues at the PH Chicago to the tech team to the problems with CS giving out incorrect information in the last year). I'm a little disappointed with this devaluation but had been expecting it for quite some time (about a year actually - when they announced the new benefits of free internet - confirmed suite upgrades etc) waiting for the "other shoe to drop". Some of the property's new classification make absolutely no sense especially relative to other properties (Hyatt) in the same "market" but I'm sure that's a result of some negotiations between the property & GP. It's been 4-5 years since the last devaluation (where Cat 5 was created - and properties moved around). I would hope that they don't do another sweeping devaluation (recategorization) again for another 3-4 years at least.

PS - If it matters - all of my stays are self-paid since virtually all travel is personal.

I agree with most posters here, even devalue Hyatt is still the best for my need, as long as they do not mess with BWB

I am a very recent refugee from Hilton. Where am I supposed to go?

Starwood? :eek:

same here.

Hyatt is still the best program for me. If they mess with the FFN/NBT/BWB promo's, then I will take my business elsewhere &/or go back to my priceline/hotwire ways.
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The devaluation simply brings the Hyatt program more inline with that of Hilton, Marriott, etc.

In fact, it can be argued that despite this devaluation, the Hyatt program is STILL more generous than almost all competing programs (maybe SPG might be slightly better).

Without a doubt, its very disappointing. However, whether we're in a recession or not is irrelevant to their decision. They are a business which needs to make a profit, rain or shine.

I dont think most of us were shocked about this, and I dont think its nearly as bad as it could have been.

+1.

I hope I am wrong, but I am pretty sure that cat 6 will be off limits to FFN, and with that I will be gone...already had some really good stays at Shangri-La in Asia and for the money it is unbeatable!

So, yeah you could say I am thinking of jumping ship. Will have to see what the new CC and FFN looks like.

I don't like the devaluation, but Gold Passport is still a more generous program- at least for me, because I only do top tier redemptions.

Let's do simple math with earning/redeeming of Hyatt vs Starwood (not taking into account credit card spend or bonuses)
Non Elite Earning:
Hyatt: 5 GP points per dollar
Starwood: 2points/$

Top Tier Redemption:
22,000 Points for top category (Park Hyatt Paris) = $4,400 in hotel spend
30,000 SPG for top category (St Regis NY) = $15,000 in hotel spend


Elite Earning (Diamond/Platinum)
Hyatt: 6.5 GP points/$
Starwood: 3points/$

Redemption:
22,000 Points for top category (Park Hyatt Paris) = $3,384 in hotel spend
30,000 SPG for top category (St Regis NY)= $10,000 in hotel spend

And to take into consideration Hyatt has more promotions, I think the answer is still a no brainer.

Even if you compare Hyatt cat 6 with Starwood cat 6
Elite Redemption:
22,000 Points for top category Park Hyatt = $3,384 in hotel spend
20,000 SPG for a Cat 6 (W Times Sq) = $6,666 in hotel spend

They've assured me that Cat 6 will remain eligible for FFN redemptions.

It looks like you are wrong.

http://www.flyertalk.com/forum/hyatt...t-6-level.html

Midst of a recession ?

You are aware that there is a world out there outside of the US borders...

It was more or less impossible to lose more than 20% before, Hyatt's prior 'devaluation' resulted in a new category, one with only about two dozen properties.

On a related side note, we have far more properties in Cat.1 now, a category famous for the best value systemwide.

Still, the major reason why I take my business elsewhere is the simple fact that a shiny black Hyatt card does not get you any further in places like Brussels, Amsterdam, Vienna or even Munich...

It sounds like your motive for switching, whether you realize it or not, is corporate resentment. Marriott is corporate as well, so your best strategy is to find small, privately owned hotels for your stays. This may cost you more, but the peace of mind will be worth it.

This thread should be merged
 

into the general Hyatt Devaluation thread IMO. 19 posts, and only the OP (who isn't even a meaningful Hyatt GP customer according to the post) is "Committed to taking our business elsewhere".

Non sequiter thread, no support for this concept.

This strikes me as a relatively minor adjustment and certainly no reason to leave the program over. It's always distressing when the price of something goes up, but that's what often happens when you want to pay for quality, and there is no denying that some of the properties affected by the shift to category 6 are the equal of any top hotel in the world. I just booked a regular award night at the Grand Hyatt in Hong Kong, and while 18K is a lot of points, I know as a Diamond I will be getting a 22K Club room/access. But considering that these properties will not be excluded from FFN-like redemptions, still gives us a dirt cheap means of experiencing the likes of the PH Tokyo for under $200 with no loss of points (i.e. 2 Hyatt Place Mattress Run stays).

I've been top tier elite in several hotel programs, and the one I will aim to keep ahead of the others for next year will still be GP.

Lifetime diamond with Hyatt
 

First of all I have always been a big Hyatt fan but this announcement is really bad:td::td::td::td:

I have SPG Platinum and Marriott Platinum as well. Yes I stay in hotel a lot (over 250 nights a year for biz).

After becoming a lifetime diamond member last year I moved more biz to Hyatt but after the devaluation I will move more to others like Marriott and SPG.

Devaluing points during a downturn in revenue doesn't make since!

I have over 500K Goldpassport points and just calculated that I lost 6 free nights because of it!

I will be calling customer relations to share my opinion and hope that all of you frequent guests at Hyatt do the some!

As usual, your commentary is dead on to my opinion. ^ While I am sad that some opportunity doors are closing, this program is really great.

No, I'm not going anywhere because of this. With me, Diamond is hard to make because of the lack of small city locations, so I have to generally rely on double-stay-credit and FFN mattress runs to get there.

I might end up cutting back on Hyatt, not because of this devaluation, but because of what my work travel patterns might end up being in the second half of 2010. I'm at 10 stay credits right now through a third of the year, and FFN usually means that I'll get 8 stay credits in 4Q if I need them. So the real question is whether I'll do 7-8 revenue stays between May 1 and the beginning of FFN, which would almost all be for work.

But given that I picked up 4 FFN nights at the Park Hyatt EZE this year, including two of the nights from four $55 HP mattress runs, I will stay loyal as long as it is logistically possible.

That makes two of us. Given that May-June and September are the most ideal weather months here in Illinois, the current promo just isn't matching my plans either. Let's both hope there is a strong FFN this fall with double stay credit or I'll join you in falling away from Diamond. The devaluation in point redemptions was not unexpected but I am wary that another one is soon to follow when the credit card is issued - both in terms of hotel redemption but also conversion. Some of those bonus Hyatt points from 1Ws and G2s were very handy in just going over the Southwest companion pass threshold this year.

I too am disappointed...BUT
 

The devaluation announcement hit me yesterday while I was in the midst of my 25th Hyatt stay of the year...Strange how I accumulated so much in such a quick time this year and I thought back in no particular order...

1) My free upgraded Presidential Suite in Singapore on FFN
2) My points redemption of a 1500sf suite in Kauai
3) My points redemption for two rooms which turned into a adjoining suite rooms in Beijing for my family including free buffet breakfasts
4) My suite upgrade in Macau last year two weeks after the property opened
5) My 15 nights redeemed at Grand Hyatt Hong Kong, 11 nights in Kowloon HR and now 10 future nights reserved in Tsim Sha Tsui in October

These are just a few of the highlights and I can figure out how I got some of these great rewards...

1) 1W (1000 extra points) instead of taking home the wine (since liquids were banned on US flights)
2) G1-G3 codes galore
3) Promo codes including 5K extra for staying at Andaz during the initial openings
4) Extra periods for creating and extending FFN night, Next Biggest Thing and the current extra promotion of extra night or 5K in points
5) Free internet
6) Free full breakfasts AND 2500 extra points for some Hyatt properties which closed their RCs (repair or permanent)
7) Most Asia properties will give you some extra goodie in the room regardless of whether an amenity is warranted or not
8) The offer of a personal concierge at Hyatt's Diamond line

I hit the Million lifetime accrual recently (over a 10 year period) but amassed another 100K in points in less than five weeks after that due to the great promotions that Hyatt put into place.

What's this all mean to me? It's not fun to see devaluation but in the scheme of things, Hyatt's program is way ahead of other programs. I thank Hyatt for the approach that they've taken...

I think it says a lot about the equity Hyatt has built up with its GP members that the reaction to this has been so restrained. Everyone just shrugs their shoulders and thinks "well, that's not good news ... but GP still kicks the crap out of Marriott/Starwood/Hilton"

Inflation is a natural after effect of flooding the market with currency. In this case, the currency is points and elites. It's naive to think that Hyatt is going to offer the opportunity to earn its highest loyalty level for several hundred dollars ($50 HP stays with double credit), offer bonus points on top of bonus points, and that everything was going to remain the same.

I hate to sound harsh. But I earn my status whether or not there are promotions. Sure, I love promos too, and will always take advantage. But you can't have it both ways. You want no blackout dates and virtually unlimited award availability? Guess what? Prices are going up.

You can go anywhere you want. It's the same story everywhere. Aside from the bonuses, I've learned in the last two years how committed Hyatt has been to me as a customer. Despite the flooding of the elite ranks, Hyatt has provided me benefits that consistently make me feel like my business matters. That's why I stay loyal.

So what? 6 days lost? You have 500K GP points and you're a lifetime member anyway.

Think of something realistic for a change.. like all the starvation in the world and see how insignificant your 'lost' 6 days really is!

I have > 1 million available Hyatt Gold Passport points. I feel your pain.

Hyatt is still a great program, although now days Hyatt Diamond’s are a dime a dozen.

Hyatt is still the best program for me.

Still love hyatt, not leaving

It may be residual good will that Hyatt has built up among its members, as you note above, but I think the more dead-on part of your post is the following:

;)

It just doesn't make sense to hold a large amount of points/miles in any program-they are all depreciating assets that you have no control over. I'm guessing that it's some sort of hoarder mentality that promotes this kind of accumulation.

To the original poster, what did you think would happen to your million plus Hyatt points by holding onto them for almost a decade? FF points or miles always are in a devaluation position and won't be worth more tomorrow then they are today.

I know holding onto points is stupid, but I know for me at least there is a definite rush factor to having your points account go over certain thresholds. I remember how excited I was the first time I crossed 250K in a program and then how hard it was to drop back below 100K.

But yes in the end, they will always be slowly devalued over time, so now if I can get more than 3 cents per point in a redemption, I use them regardless of if I need to or not.

Marriott rewards devaluated a few yrs ago... same thing.

There is some advantage to have a stash of points to pre-book FFNs or use the "old" award chart in the event of a devaluation like now. But having an excessive amount is not really a good idea (although some road warriors just want to stay home after traveling for work every week). Personally, I try to keep a stash of about 200,000 for these purposes.

WPJ --

Not only did Marriott devalue a couple of years ago, it appears that they are in the process of "enhancing" their elite status.

In fact, the OP of this thread is now worrying that they are going to emulate Hilton even more!

So much for switching hotel chain allegiances! :p

It's a paradox, but the best time to get an assured "deal" (discount) is when a program announces a devaluation. In 2008, I booked several UA international tickets in "C" for 2009, before the price went up from 80,000 to 105,000 on 1/1/09. In light of the oncoming train, I thought that that was the best I could do. Still no regrets.

I am impressed with how Hyatt is easing this one in. It's far from a "gotcha". We have until June to do a big burn with reservations that are as far as a year out at the new "old" rate, if we so choose, and until September to move those award stays all over the board. That means, if I'm not mistaken, that we can re-book what we have on the books for as late as August 2011. Unlike airline tickets, we can cancel the reservation without penalty (except those points becoming worth less).

I won't be thanking Hyatt for this one. If a devaluation was necessary, and I could still debate either side of that... But anyway, if one was coming, I can't think of too many gentler ways to implement it. For that, thank you Hyatt.

My point? To the extent this raises our angst, time to get to work.

Actually comes from spending a lot of money at Hyatt’s, mostly in Asia.

I do use my points and in fact have claimed nearly 1 million points on awards.

It's just that I make more points than I can use, and this has been the case for many years.