Visconti

Sure, if taken on its own absent of any other factors. However, from Hyatt's perspective, there is an optimal revenue amount, which I assume is $20K (100K points), since it's what they've chosen. If the amount they chose is accurate, any amount above/below $20K would lead to lower profit. Or, they could create a super tier status, say, over $50K revenue, not unlike the motivation for Amex Centurion card memberships.

For the sake of simplicity, a night is a night. But, if possible, I find it more equitable to lend more weight to nights by category levels.

dsquared37

Not this strawman again; reminds me of the UA board fixating on a mythical beast able to ascend to the highest levels of status for pennies on the dollar. While it's possible to do something like this the number of Diamonds members who ascertain status in this fashion is minuscule and probably less than a rounding error in the vast scheme of things.

But they fixed nothing. There are still ways to get status for cheap for some.

That would be me.

Visconti

Ok, let's assume the 25 stay cheeser makes up a "minuscule" amount. Just the fact that such top tier exists, while there are no $20K spend elites with less than 25 stays was something that has rightfully been addressed.

price123

Me too. We already have a big trip booked in April - some Hyatt stays but staying in some countries with no Hyatts. Since we will not choose Hyatt unless we have top tier in their loyalty program, we have no stays after April booked and have shifted over to SPG. It is such a relief to now be able to plan trips to where we want to go, not just where there is a Hyatt! So we have multiple European weekends booked (Spain, Italy, Prague etc) and 3 weeks in Asia. Five January business meetings shifted over to Marriott.

One aspect of WoH that tipped the balance for us is that it is not $20K spend required, it is $20K qualifying spend. Given service charges and tax do not qualify, that is nearer $25K+.

Kacee

Great idea - I think there's also an Olive Garden nearby so we're set on the food, too!

RTW1

But what change are you talking about.... you really are anxious to be called a Glob?
For the rest your stay will stay exactly the same, or do you really think that from March 1st you will be staying in suites all the time?

Visconti

LOL...Post March, we'll be Globs. So lame...

JackE

What factors make a $20K customer profitable but a $5K customer unprofitable? The only one I can think of is, maybe, DSUs. But that could be more easily addressed.

Visconti

Since Hyatt has chosen $20K as the revenue point, I assume it's the point at which they feel is the optimal amount to "justify" the anticipated costs associated with Diamond/Glob perks and benefits.

They must feel (rightly or wrongly) that $20K is the level where profit less rewards expense is optimal. In other words, it's the amount where marginal revenue equals marginal cost, when taking into consideration the cost of the rewards program.

An amount greater than $20K will be profitable, but not as profitable as $20K. Equally, an amount less than $20K may be profitable, but not as much as $20K. It's not a matter of profitable, but at which point is profit maximized vs cost of rewards.

I assume this is how they chose the number.

RTW1

But your assumption (you know how those work) that most Diamonds/Globs will qualify on a spend of $20k in base points might be flawed as well.... an average room rate of $300+ (excluding fees and taxes) is a bit much when half of the portfollio consists of HP/HH.

With re-qualification at 55 nights, the credit card option and things like P+C it will be awfull hard to spend €20k unless all stays are at the higher end properties. The problem is those are few and far between...

Lots of speculation about the presentation wher the average Diamond revenues were shown at $16k already. Quite a leap to strech that to $20k.

dsquared37

The 25 stay mattress run Diamonds and $20K+ spend non-Diamonds are probably a very rare breed. And all this does is open up the possibility of that second group to gain status; it doesn't demand all do the same.

The $20k spend solves a problem that didn't exist outside of a ledger, but most here can read that clearly.

HHonors OUTSIDER

Come on its brilliant marketing. If you EXPLORE you will DISCOVER. As you discover more you will be travelling the globe and become a GLOBALIST in a big world the WORLD of HYATT. The only thing that could make it better is if March 1st could start today.

PortlySpartacus

No, I don't think the suite upgrade perk will be all that great. If I get it a few times then that would be better than what I have experienced under the current program. I just want the new program to kick-in and move forward, that's all I mean. Its been announced and its done so that is all I'm referring to, lets get on with it already.

JetAway

Are there really that many people who spend $20K a year with Hyatt (aside from weddings, conventions, etc.)? Hilton, Marriott, Four Seasons, etc.-sure. But Hyatt-with its small footprint and few PH and GH properties?

OsakaWino

Just realized one more consequence of WoH for me ... higher electric, gas, and water bills

We used to spend one or two Sat nights a month at either HR Kyoto or HR Osaka, but this year I'm only planning 4-5 nights over 2-3 stays at HR Kyoto and right now nothing at HR Osaka.

Logged into my GP account and was rather nonplussed to see "52 days until next stay". It has been a long time since I've had such a big span between stays.