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23% discount on Hyatt points - that's it?

23% discount on Hyatt points - that's it?

Old May 5, 20, 6:12 pm
  #1  
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23% discount on Hyatt points - that's it?

Sorry if this is old news. For some reason, even though I have status and the WOH card, I very rarely get Hyatt emails, so I thought this was a big deal for them.

Sale lasts until May 10, points at a whopping 23% discount. Hyatt, you need to try a little better than that if you want me to make a big purchase...

https://storefront.points.com/world-of-hyatt/en-US/buy
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Old May 5, 20, 7:45 pm
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I was offered a 30% bonus for everything above 5K pts. I'm a glob if that helps for reference.
I already have way too many points so I'll pass.
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Old May 5, 20, 8:19 pm
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23% discount versus 30% bonus sounds the same to me.
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Old May 6, 20, 1:44 am
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I guess itís all dependent on your situation.

If youíre a Globalist and want Complimentary parking at a property that charges $50+ a night a discount on Points is helpful.

Globalists should get some discount on parking when paying cash rates, but thatís neither here nor there.

Otherwise not an amazing deal.
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Old May 6, 20, 3:39 am
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I'm a bit baffled that anyone would complain about a 23% discount. That's a significant discount to me.
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Old May 6, 20, 5:14 am
  #6  
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Originally Posted by writerguyfl View Post
I'm a bit baffled that anyone would complain about a 23% discount. That's a significant discount to me.
Hyatt often offers a 40% bonus, or roughly 30% discount, on points. For example, it looks like I received 5 different offers between May and December 2019.
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Old May 6, 20, 7:30 am
  #7  
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Investors will push hard to get points off the books and to generate cash. The question is not the premium or discount on points, but the cost when one redeems them.

Problem, not just for Hyatt, is that it has to turn off the spigot on points which are not roughly cash-equivalent. Points are a drag on the balance sheet and do not generate cash. In ordinary times, it is all about building the brand and increasing long-term revenue. Now, without cash, properties will simply fail and that will be the end of it.

The landscape going forward is going to look a lot different. If property's (and thus corporate) can't generate operating cash, providing parking, lounges, F&B and the like will be the least of the issues.
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Old May 6, 20, 10:03 am
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My point is that Hyatt is burning cash at a tremendous rate, so I am surprised that they are not trying to raise money more quickly.

Their 1Q earnings will be released at 4 pm today, so we will see how badly they are bleeding cash, potential property closures/sales, etc. It's going to be grim.
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Old May 6, 20, 11:27 am
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Originally Posted by Tino View Post
My point is that Hyatt is burning cash at a tremendous rate, so I am surprised that they are not trying to raise money more quickly.

Their 1Q earnings will be released at 4 pm today, so we will see how badly they are bleeding cash, potential property closures/sales, etc. It's going to be grim.
That is exactly right. Selling points is like selling stamps: you get income today for services you don't have to provide until some point in the future. It is especially profitable right now, because Hyatt reimburses the franchisees a lot more when the hotel is full, and hotels aren't full right now.

I'm surprised that Hyatt is not offering a bigger deal. 30%? No way am I interested in buying at that price.
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Old May 6, 20, 12:07 pm
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Originally Posted by jn in ca View Post
..

I'm surprised that Hyatt is not offering a bigger deal. 30%? No way am I interested in buying at that price.
thankfully printing points and devaluing has not been hyatt strategy; many here appreciate that
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Old May 6, 20, 12:56 pm
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Originally Posted by jn in ca View Post
That is exactly right. Selling points is like selling stamps: you get income today for services you don't have to provide until some point in the future. It is especially profitable right now, because Hyatt reimburses the franchisees a lot more when the hotel is full, and hotels aren't full right now.

I'm surprised that Hyatt is not offering a bigger deal. 30%? No way am I interested in buying at that price.
This promo was likely already planned from February and announced to some in early March to start I believe at the end of March.

Another interesting tidbit -

I just got a reservation change notice for a December Points reservation which I thought was strange as I didnít make any changes. So I reached out to Hyatt via Twitter to see what exactly the change had been. They advised it was a change to the amount of reimbursement to to the property for my points booking.
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Old May 6, 20, 8:57 pm
  #12  
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Originally Posted by Tino View Post
My point is that Hyatt is burning cash at a tremendous rate, so I am surprised that they are not trying to raise money more quickly.
Fully agreed. I recently received a promotion from Banyan Tree for the sale of gift certificates / rate packages. The price was good so I was initially interested, until I found out that if I book a room using these certificates, I will not get any elite benefits such as room upgrades, and no points earned or night credits, so I passed. Just my opinion, but now would be a good time to be liberal with benefits, not stingy. There is a wave of great hotel deals coming up in the second half of this year and possibly next year; they could have secured my cash in a non-refundable gift certificate, but failed to do so. Similar for sales of points by Hyatt or other chains: Hyatt might have enticed some folks to buy points at 40% off but 23% is probably not enough for a good number of customer. Some of these same people might end up staying in a Marriott hotel in October instead, when huge cash sales come out, when they could have stayed in a Hyatt hotel instead.

Air Canada seems to understand the issue. They are selling miles at 1 US cent per mile as part of a promo. They will raise a lot of cash at that price.
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Old May 6, 20, 9:29 pm
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Buying Hyatt points at regular price is a poor deal. This bonus changes it to an OK deal. It's worthwhile to top off an account.
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Last edited by Brendan; May 13, 20 at 8:09 am
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Old May 12, 20, 3:43 pm
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Originally Posted by azepine00 View Post
... devaluing has not been hyatt strategy...
Come again?
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Old May 12, 20, 9:53 pm
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Marriott selling gift cards at 20% off is a far superior way for a hotel chain to raise cash in hard times, than Hyatt selling points at 23% off, hence OP's very valid question here "that's it?".

Not to mention that Marriott's sale is counted as "travel" so people can get 3x on Chase UR credit card or can get 6x on Marriott branded credit cards, unlike Hyatt's sale where you get 1x.

Hyatt could come up with a gift card sale as well in the near future, but the problem will be that there is a first mover advantage here. People who loaded up on Marriott gift cards will not have as much budget to spend on Hyatt gift cards. Speaking of people who like to stay at both chains of course...
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