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[CONFIRMED] Points and Cash Devaluation Coming 1 November?

[CONFIRMED] Points and Cash Devaluation Coming 1 November?

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Old Oct 20, 18, 11:49 am
  #31  
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Originally Posted by gengar View Post
Folks, this rumor isn't even from a source within Hyatt. It's silly to complain about completely unconfirmed rumors - and even more so, to complain about lack of notice before a change is even announced.
Hyatt loyalty program managementís been in program devaluation mode for quite some time, so there is no better time to complain about devaluations than before the next devaluation. And Hyattís been providing less and less advance notice when it comes to how they change the Hyatt loyalty program. Complaining about no minimal advance notice period before a devaluation hits is sensible now. Complaining about devaluations is sensible now too. Unfortunately for customers, customer complaints now or later probably wonít change a thing since Hyatt is fully vested in devaluing the program for its customers in the main in the current environment. But I donít see the harm from complaining away and doing so now and later.
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Old Oct 20, 18, 1:34 pm
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I just made a few P+C bookings in the last week. When you can find them, they can be a tremendous value. So far be it from me to say that this doesn't sting. It stings. I said it.

This said, the saving grace is that after WoH rolled itself out in get-rid-of-everybody mode, they totally relaxed in letting points bookings count toward status. Points bookings did not count toward status under either the old Hyatt Gold Passport program or the original version of WoH. P+C were crucial to me under Hyatt Gold Passport. But, now that points-alone bookings count toward status, this gutting of P+C is less painful.

It stings. It's not crippling.
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Old Oct 20, 18, 2:08 pm
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Yeah it's a definite negative if true, which I'm sure it is. Is it devastating? No. It basically will be the end of points and cash. Hyatt has an irritating habit of gutting things so that they are effectively useless, instead of just abolishing them...like the brg. I suppose there could be some rare times where half the cash rate plus the points could be an equal or better value than how it is now, but i doubt it'll be a lot.

Last edited by antonius66; Oct 20, 18 at 8:56 pm
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Old Oct 20, 18, 3:22 pm
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it doesn’t sting at all.
the only loss is the ability to acquire some points at $0.015 each, which frankly is about their worth.

they could devalue far more and i’d stick around because Hyatt = suites for cheap.
the rest is gravy.
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Old Oct 21, 18, 2:35 pm
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Originally Posted by Colin View Post
it doesnít sting at all.
the only loss is the ability to acquire some points at $0.015 each, which frankly is about their worth.

they could devalue far more and iíd stick around because Hyatt = suites for cheap.
the rest is gravy.
My math is different.

just booked points plus cash for GH Kauai. Going rate is $559 (about 10 % less with senior discount)

i save $409 for 12,500 points after accounting for the $150 copay. . 3.27 cents per point. Without cash and points it would be
2.24 cents per mile. This is a typical redemption for me.

The purchase of points implicit in this is 12.5k points for $150, a cost of 1.2 cents per mile.

if you want, you can fine tune the math by reflecting the lost points from not paying cash, but still comes out to more than double the estimate of 1.5 cents per point.

Thats the price below which I BUY points, not the strike price for cashing points. A common mistake made by many bloggers.

This is a ton of value going away.
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Old Oct 21, 18, 2:41 pm
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the only logical comparison is the cost of full points vs. points+cash.
the paid rate is irrelevant because a low enough paid rate would be preferable to both or neither redemption option.
this is particularly so for most of us on here with huge potential Hyatt points from Chase UR.
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Old Oct 21, 18, 3:16 pm
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Originally Posted by beachfan View Post

My math is different.

The purchase of points implicit in this is 12.5k points for $150, a cost of 1.2 cents per mile.


I believe your $150/night cost is closer to $208.
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Old Oct 21, 18, 3:39 pm
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Originally Posted by hedoman View Post
I believe your $150/night cost is closer to $208.
How so?

i donít pay resort fees. Even if I did, the math would still work out to the same redemption value is resort fee would be paid in both instances still leading to the same $savings for 12.5k miles.

And if you do it after taxes, you save even more money as the C+P tax is around $22 and the cash rate tax is $84

And then I also save parking on cash and points (and pure points) Even though I think they are going beyond when waiving parking on C+P so not fair to count it (although itís been consistently waived in the 3 times I had a car with me)
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Old Oct 22, 18, 1:25 am
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Originally Posted by Colin View Post
the only logical comparison is the cost of full points vs. points+cash.
the paid rate is irrelevant because a low enough paid rate would be preferable to both or neither redemption option.
this is particularly so for most of us on here with huge potential Hyatt points from Chase UR.
Correct.

But I've learned not to bother enlightening people about how their 10 cent per mile/point "valuation" is just a fallacy.
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Old Oct 22, 18, 3:18 am
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Still a Blow

While not the end of the world, and hopefully no further devaluations coming down the pike, regardless, it's still a blow, as it allowed those short on points to stay at properties with high paid rates

Last edited by MarkP24; Oct 22, 18 at 3:19 am Reason: Clarification
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Old Oct 22, 18, 4:06 am
  #41  
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Originally Posted by Colin View Post
the only logical comparison is the cost of full points vs. points+cash.
the paid rate is irrelevant because a low enough paid rate would be preferable to both or neither redemption option.
this is particularly so for most of us on here with huge potential Hyatt points from Chase UR.
The cash paid rate is not irrelevant to comparison; and the above post even closes with a line that indicates regular paid rates are relevant for logical comparison purposes ó and even more relevant for those without huge potential (opportunity cost) to get Hyatt points from Chase UR.
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Old Oct 22, 18, 7:21 am
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Originally Posted by Colin View Post
the only logical comparison is the cost of full points vs. points+cash.
the paid rate is irrelevant because a low enough paid rate would be preferable to both or neither redemption option.
this is particularly so for most of us on here with huge potential Hyatt points from Chase UR.
That doesnít make sense. You would have never come up with a value if 1.5 cents per mile if you never looked at cash prices.

And there are examples where all points would deliver a redemption value lower than 1.5 cents but C&P redemption above that.

Not true that cash cash is always either better or worse than both options.

clearly if you had an infinite # of points, points would always be better.

But with the large but finite amount I have (in UR currency), itís the difference between 4 weeks of redemptions, (700k at cat 6) vs 8 weeks. 4 weeks is about 1.33 years worth, so I will run out relatively quickly given my hyatt point earnings per year.


And cash redemption value is always a valid number if you are willing to pay the cash price.
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Old Oct 22, 18, 8:08 am
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if you are WOH points constrained, this devaluation only means that you've lost an easy way to buy more points for ~$0.013 each.
so, let's assume you would normally buy 50K points/yr using the points+cash method at the $0.013 rate or $650 total.
now, you instead buy these 50K miles directly from WOH during their annual 40% bonus period at the rate of $0.017 or $850 total.
the devaluation costs you $200 a year.
cash rates irrelevant.
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Old Oct 22, 18, 9:30 am
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Originally Posted by Colin View Post
if you are WOH points constrained, this devaluation only means that you've lost an easy way to buy more points for ~$0.013 each.
so, let's assume you would normally buy 50K points/yr using the points+cash method at the $0.013 rate or $650 total.
now, you instead buy these 50K miles directly from WOH during their annual 40% bonus period at the rate of $0.017 or $850 total.
the devaluation costs you $200 a year.
cash rates irrelevant.
Of course if you only only do it 4 nights a year, itís a small impact. Thatís not an insight.

i just said I do it 21 nights a year, 262.5k points a year. Now we are over $1000 if Hyatt would sell me that many. Is there a cap on the annual sale? If so, then cash price is relevant for sure.
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Old Oct 22, 18, 9:30 am
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Originally Posted by beachfan View Post

My math is different.

just booked points plus cash for GH Kauai. Going rate is $559 (about 10 % less with senior discount)

i save $409 for 12,500 points after accounting for the $150 copay. . 3.27 cents per point. Without cash and points it would be
2.24 cents per mile. This is a typical redemption for me.

You should be comparing against using all points not cash rate. You pay 150 instead 12.5k pts and thats the option you stand to lose if prediction comes true.
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