Go Back  FlyerTalk Forums > Miles&Points > Hotels and Places to Stay > Hyatt | World of Hyatt
Reload this Page >

Is WOH losing control to enforce hotels to make standard redemption rooms available?

Is WOH losing control to enforce hotels to make standard redemption rooms available?

Old Jun 1, 22, 6:11 pm
  #31  
 
Join Date: Apr 2015
Location: IAD
Posts: 606
I guess what I don't understand is that most full-service Hyatt's are directly managed by Hyatt and not franchised. This gaming seems to occur whether or not the properties are franchised. Are the GMs of non-franchised properties (so a direct Hyatt employee) more likely to bow to the owner's preferences than Hyatt? Or am I completely misunderstanding the dynamics?
IAD_flyer is offline  
Old Jun 1, 22, 6:16 pm
  #32  
A FlyerTalk Posting Legend
 
Join Date: Apr 2013
Location: PHX/SFO
Programs: AA EXP; AS 75K; WN A List; UA 1K 1MM; Hyatt Globalist; Marriott AMB; Hilton Diamond (Aspire)
Posts: 49,874
Originally Posted by IAD_flyer View Post
I guess what I don't understand is that most full-service Hyatt's are directly managed by Hyatt and not franchised. This gaming seems to occur whether or not the properties are franchised. Are the GMs of non-franchised properties (so a direct Hyatt employee) more likely to bow to the owner's preferences than Hyatt? Or am I completely misunderstanding the dynamics?
I suspect the answer is that, regardless of ownership, GMs are judged first and foremost based on the property's financial performance. Further, Hyatt has an asset-lite strategy, and will often own properties only temporarily, with the goal of selling to a buyer who will retain Hyatt management. In this circumstance there is particular incentive to bump the property's revenue numbers.
IAD_flyer likes this.
Kacee is online now  
Old Jun 3, 22, 8:39 am
  #33  
nsx
Moderator: Southwest Airlines
Hyatt Contributor Badge
 
Join Date: Sep 1999
Location: California
Programs: WN Companion Pass, A-list preferred, Hyatt Globalist; United Club Lietime (sic) Member
Posts: 20,806
Originally Posted by boolean64 View Post
My experience with the Ventana is they are quite generous with elite benefits and are happy to make standard rooms (and premium rooms) available on points...it's just a very small hotel with high demand.
This will not remain true in 2023. Ventana won't be able to maintain full occupancy at 45k points per night. We are already seeing 45k availability appear this autumn.
nsx is offline  
Old Jun 3, 22, 10:41 am
  #34  
 
Join Date: Sep 2019
Location: Los Angeles
Programs: Hyatt Globalist, Hilton Diamond
Posts: 2,810
Originally Posted by IAD_flyer View Post
I guess what I don't understand is that most full-service Hyatt's are directly managed by Hyatt and not franchised. This gaming seems to occur whether or not the properties are franchised. Are the GMs of non-franchised properties (so a direct Hyatt employee) more likely to bow to the owner's preferences than Hyatt? Or am I completely misunderstanding the dynamics?
Originally Posted by Kacee View Post
I suspect the answer is that, regardless of ownership, GMs are judged first and foremost based on the property's financial performance. Further, Hyatt has an asset-lite strategy, and will often own properties only temporarily, with the goal of selling to a buyer who will retain Hyatt management. In this circumstance there is particular incentive to bump the property's revenue numbers.
One large issue I see though that no one is addressing in regards to Award bookings in these mega demand properties is -

Hyatt will reimburse these properties close to the Member Rate if they are at 90% or more capacity, at least this has always been my understanding. Not sure if itís the Member rate for that day or the ADR, but either way itís almost full compensation.

So if itís truly a Mega High Demand property where itís near capacity most of the year then having more award bookings would actually help them as theyíd then be getting more revenue reimbursement from Hyatt.

Again though this would only apply to properties with anticipated capacity of 90% or more and fulfill those rooms.

Iím wondering then what percentage of rooms are classified as Standard Rooms, and does Hyatt have a minimum percentage, if so what is it? (If there was a minimum percentage I would guess 20%-30%).

Originally Posted by nsx View Post
This will not remain true in 2023. Ventana won't be able to maintain full occupancy at 45k points per night. We are already seeing 45k availability appear this autumn.
Even at 40k (Standard) itís not appealing I suspect in 2023 there will be loads of availability after the novice wears off and youíll see more Off Peak availability late 2023 and early 2024 which will get booked up.
IAD_flyer likes this.
Matt4200 is online now  
Old Jun 3, 22, 12:31 pm
  #35  
Hyatt Contributor Badge
 
Join Date: Jun 2001
Location: Victoria, B.C.
Programs: Hyatt Globalist, AA Gold LT
Posts: 1,809
So glad to see this post as I thought I have just been unlucky when booking Hyatt hotels 2-3 months out. Every hotel I try to book has no points availability. I am hoping this will change when the pandemic is over and travel resumes to a more normal level and Hyatt will release more standard room availability.
smilee is offline  
Old Jun 3, 22, 3:12 pm
  #36  
 
Join Date: Aug 2017
Location: Stilllwater OK (SWO)
Programs: AAdvantage ExecPlat, World of Hyatt Globalist, plain "member" of Marriott, IHG, enterprise, etc.
Posts: 1,466
Originally Posted by 777 global mile hound View Post
Hyatt sets the rules in the end not owners...
Yeahhh,, but its the owners that choose to flag with Hyatt. My only point is that if this is standard for the industry to allow (which, it seems to be), it isn't as simple as 'making rules and enforcing them'. You have owners that can choose to reflag.

I am not in support of the practice, but I very rarely ever seem to run into this problem....
MarkOK is offline  
Old Jun 6, 22, 1:57 am
  #37  
 
Join Date: Apr 2012
Posts: 105
this logic makes zero sense since when hotels reach a certain occupancy %, they can charge hyatt or any other brand the ADR of that night rather than collecting the $ that they get when they are below that threshold so a lot of hotels are either clueless or just don't understand that
1mileman is offline  
Old Jun 6, 22, 9:24 am
  #38  
 
Join Date: Sep 2019
Location: Los Angeles
Programs: Hyatt Globalist, Hilton Diamond
Posts: 2,810
Originally Posted by 1mileman View Post
this logic makes zero sense since when hotels reach a certain occupancy %, they can charge hyatt or any other brand the ADR of that night rather than collecting the $ that they get when they are below that threshold so a lot of hotels are either clueless or just don't understand that
So if they are projected to be at 70% capacity the best move would be to upgrade the people who booked via a 3rd party or whatever to a room thatís basically still a standard room just not designated one on Hyatt.com and release the award availability until theyíre at 90% or 95% capacity. This would not only net them much more on the guests that booked at 70% and higher but also all guests booking on points.

This would only work though at Mega High Demand properties like Andaz Maui, Ventana etc.
Matt4200 is online now  
Old Jun 6, 22, 10:09 am
  #39  
nsx
Moderator: Southwest Airlines
Hyatt Contributor Badge
 
Join Date: Sep 1999
Location: California
Programs: WN Companion Pass, A-list preferred, Hyatt Globalist; United Club Lietime (sic) Member
Posts: 20,806
Originally Posted by Matt4200 View Post
This would only work though at Mega High Demand properties like Andaz Maui, Ventana etc.
I claim that at 45k per night, Ventana will no longer have high enough demand for this strategy to succeed. Besides the 50% increase in points price, the novelty for points redemption is wearing off. Something will change within a year. I wonder what.
nsx is offline  
Old Jun 6, 22, 10:28 am
  #40  
 
Join Date: Jul 2006
Location: Upper Sternistan
Posts: 8,966
Originally Posted by nsx View Post
I claim that at 45k per night, Ventana will no longer have high enough demand for this strategy to succeed. Besides the 50% increase in points price, the novelty for points redemption is wearing off. Something will change within a year. I wonder what.
I disagree. I think people have reset their ideas of what good travel costs. If you figure Hyatt points are worth about 1.5c (I do) then this is $675/night for a very nice stay, all-in. I consider that to be a fantastic deal, and I don't have Silicon Valley money.
nsx likes this.
josephstern is online now  
Old Jun 6, 22, 11:13 am
  #41  
 
Join Date: Sep 2019
Location: Los Angeles
Programs: Hyatt Globalist, Hilton Diamond
Posts: 2,810
Originally Posted by josephstern View Post
I disagree. I think people have reset their ideas of what good travel costs. If you figure Hyatt points are worth about 1.5c (I do) then this is $675/night for a very nice stay, all-in. I consider that to be a fantastic deal, and I don't have Silicon Valley money.
My absolute cap is $300 a night lol so 20k points a night or a Cat 5 would be the highest Iíd go, being more than double that Iíd say not.

I would do 2-3 nights at a Cat 7 property though for a very special stay if I have a Cat 1-7 Certificate as it has an expiration and would drop the cost to 30 or 60k (standard dates) making it 20k or less per night.
Matt4200 is online now  
Old Jun 6, 22, 11:23 am
  #42  
A FlyerTalk Posting Legend
 
Join Date: Apr 2013
Location: PHX/SFO
Programs: AA EXP; AS 75K; WN A List; UA 1K 1MM; Hyatt Globalist; Marriott AMB; Hilton Diamond (Aspire)
Posts: 49,874
Originally Posted by nsx View Post
I claim that at 45k per night, Ventana will no longer have high enough demand for this strategy to succeed. Besides the 50% increase in points price, the novelty for points redemption is wearing off. Something will change within a year. I wonder what.
I hope you're right, but we're seeing massive inflation throughout the points world, and thus far the increases seem to be sticking.
Kacee is online now  
Old Jun 6, 22, 9:11 pm
  #43  
 
Join Date: Apr 2012
Posts: 105
Originally Posted by Matt4200 View Post
So if they are projected to be at 70% capacity the best move would be to upgrade the people who booked via a 3rd party or whatever to a room thatís basically still a standard room just not designated one on Hyatt.com and release the award availability until theyíre at 90% or 95% capacity. This would not only net them much more on the guests that booked at 70% and higher but also all guests booking on points.

This would only work though at Mega High Demand properties like Andaz Maui, Ventana etc.
has nothing to do with projected occupancy, but rather actual occupancy %. and has nothing to do with releasing award rooms. It's about hotels not understanding that award stays at higher occupancy will yield them the average daily rate that can be billed to the brand and they will still make a good profit on the room.. if they are playing games with award availability, then that is because they don't understand how the program works on high occupancy nights.
1mileman is offline  
Old Jun 6, 22, 9:36 pm
  #44  
 
Join Date: Sep 2019
Location: Los Angeles
Programs: Hyatt Globalist, Hilton Diamond
Posts: 2,810
Originally Posted by 1mileman View Post
has nothing to do with projected occupancy, but rather actual occupancy %. and has nothing to do with releasing award rooms. It's about hotels not understanding that award stays at higher occupancy will yield them the average daily rate that can be billed to the brand and they will still make a good profit on the room.. if they are playing games with award availability, then that is because they don't understand how the program works on high occupancy nights.
If you read my posts it clearly does state that yes they must also fill those rooms.

However, projected occupancy gives them an idea of how many more award rooms would need to be sold and to release X number of rooms (+ 5% to be safe) to hit the threshold.
Matt4200 is online now  
Old Jun 8, 22, 3:48 pm
  #45  
 
Join Date: Jul 2009
Posts: 824
Ironically, I had no problem booking an award stay at Aviara, but was surprised that I could not book a standard award night at Manchester Grand. They are offering free night awards for suites, but not a standard room.

Last edited by DealDetective; Jun 9, 22 at 12:31 pm Reason: Correction due to misinformation
DealDetective is offline  

Thread Tools
Search this Thread