Here’s something that’s been on my mind. I like the new Chase Sapphire Preferred refresh. I think it is a real improvement for most cardmembers. But I worry about what it says for the future of the currency.
What’s good:
- The card is going to earn more points in categories that matter, like short-term rental platforms such as Airbnb and Vrbo as well as gas stations and EV charging.
- And it now has a hotel credit that’s bigger than the card’s annual fee, with no minimum night stay to use it.
The givebacks were the 10% annual bonus on points earned, and 1:1 Hyatt transfers (which move to 4:3, but are still 1:1 for Sapphire Reserve). I think the good outweighs the bad here for most cardmembers.
- Hyatt was historically a major value play for Chase points
- But those points aren’t worth what they were just a month ago
- And the truth is that relatively few cardmembers transferred to Hyatt – United transfers and Chase portal bookings were much bigger.
What really strikes me about the Hyatt transfer ratio change is ‘breaking the buck.’Previously, Chase points transfers were all 1:1. It’s concerning that they no longer feel that’s an anchor.
I follow the internal math, that if they’re giving customers more points they can’t have those points used at par for their most expensive redemption. Hyatt charges more for points than other partners.
Yet I can’t help but view Ultimate Rewards as less of a reserve currency because until a year ago the points themselves had never really been devalued.
- Chase has reduced points value redeeming for travel through their portal.
- They introduced Points Boost which was supposed to compensate, giving occasionally even greater value (when travel options are available to Chase at a discount) but we’ve already seen multiple rounds of devaluation of Points Boost such as The Edit hotels going from a flat 2 cent per point redemptions to those being quite rare.
- And if they can now adjust transfer ratios, who’s to say Hyatt will be the last? Could we see more shifting either when a give points price goes up or when Chase is unhappy with its redemption costs overall?
The move away from strict 1:1 transfers also underscores how bad a value some transfers are. I sort of understood 1:1 transfers from Chase to IHG Rewards when all points transfers were 1:1. But now there’s no excuse! An IHG point is generously worth about half a cent apiece. The basic IHG Premier card earns 3 points per dollar on general spending. Chase’s premium Sapphire Reserve only transfers at 1 Ultimate Rewards points to 1 IHG point.
Chase no longer feels beholden to 1:1 ratios so it is inexcusable to leave IHG at 1:1. It is inexcusable to leave Marriott at 1:1, too, except that’s also the poor ratio at which Amex Membership Rewards points transfer to Marriott. If we’re going to break the 1:1 anchor then the effect on consumers should move in both directions, not just drive down Chase’s blended average redemption cost.
I suppose if you call reducing a key transfer partner and adding new coupon credits “better,” then yes Chase done better’d the heck outta this!
Think you’re making something that only hits certain groups. I’m a Marriott guy so how does Hyatt bother me?
CSP is still an immensely great car. The Apple TV sub alone more then covers the annual fee. Addition 3x category is great.
Great card some non Hyatt people; still a great card for Hyatt people.
I am guessing that the devaluation of the Hyatt transfer ratio is in anticipation of the new Hyatt premium card (whenever that is supposed to be released) The premium cards, reserve and whatever they call the next Hyatt card is called, will be the ones to maintain the one-to-one-transfer ratio. It is also another reason for Chase to tout the “new” card.
It used to be Hyatt was almost always rewarding and good value
Chase point transfers made some sense.Now?
This puts the knife in the wound as Hyatt got greedy and these jerks did it to themselves.
I am in a variety of new programs now as Hyatt points except in cheaper properties aren’t worth crap now.Cash rates make more sense and the program is damaged long term imo
Some globalists will trumpet but ohhhhh but I get free breakfast so its still good
And some of those fools are paying hundreds of dollars extra for their free breakfast as Hyatt blows smoke and mirrors around the foolish for their elite status illusion in premium properties.
I burned near a million points and now I’m done for the most part except if its a stellar property on good cash rates otherwise I’m out. Chase S Reserve on the other hand thanks to the Edit makes great sense as long as you like to stay in hotels that participate.Not all the Edit properties are a rip off as originally many of us perceived
BA- you hit the nail on the head.
Hyatt is a small brand with a mere 1350 hotels versus 10000 for Marriott for example.
There are 8 million Airbnb’s plus all the other vacation rentals that will now earn more.
Everyone that uses Chase for auto fuel will earn more.
The increased stay credit is available to all Chase cardholders at 10’s of thousands of properties worldwide, including many independent hotels.
They added evacuation insurance.
There is absolutely no question that a far greater number of people will benefit from these changes than will lose from it.
Let me be clear, I am not bashing Hyatt. I have no experience with the brand and I probably never will because there are so relatively few of them.
But that is why the card is so improved- because the people losing benefits are so small of a group.
To quote Star Trek 2- the needs of the many out weigh the needs of the few… or the one.
The new changes are lipstick on a pig. Hyatt was – and currently still is – the most valuable transfer partner by far, although the recent massive double devaluation by Hyatt worsens things considerably. Now Chase is doing a further 25% devaluation to the best transfer option? On top of killing off the 10% rebate? That’s just bad. I’ll keep my CSP because of the travel protections and the primary car rental insurance but otherwise there’s increasing less to like.
What Chase did was worked on the body to get them six-pack abs but ripped out the heart. Net result – CSP is dead!
I didn’t use the UR ecosystem for Hyatt. I am down with increased earning. I will miss the 10% bonus. They didn’t change the annual fee, so it seems like a good value relative to cost. Still, I feel for the Hyatt folks.
Chase ecosystem works for me, but they are on notice with their own shenanigans with the portal and points (de)valuations. Stay vigilant.
For people that didn’t care about Hyatt (myself included) it was nice to see positive changes to a program rather than negative ones. But this article is a nice reminder that everything is still trending towards getting worse rather than better.
@MM — Ugh, you butcher Spock’s wisdom. Chase isn’t acting out of logic or altruism for ‘the many’… they’re acting out of corporate greed. The Ferengi Rules of Acquisition is more fitting: “A deal is a deal… until a better one comes along.” Chase just altered the deal, and you’re thanking them for the lipstick on the pig (@Christian).
@Christain if you keep subscribing to the card, even after devaluations and so do a majority of other people, then the devaluation is not going to stop. Six months, a year down the road they will devaluate further as they think people will still hang onto it.
So if you need a better deal, you got to be able to walk away.
Gary, the last two paragraphs are the real takeaway. If everything isn’t 1:1, then Chase needs to rejigger some of the other rates.
The bigger issue is industry wide: that your transfer rate to a program depends on your bank/card. It will eventually hurt someone’s bottom line, but who blinks first will be the story.
Chase’s biggest insult is giving you Hyatt 1:1 access IF you pay for the higher-end cards. That feels like ransom, especially since Chase’s one-in-a-lifetime language is actually that. I got the CSR when it first came out and I’m still ineligible to get it. Chase can pound sand if they think I’ll upgrade sans SUB just to get 1:1 Hyatt.
What is Chase going to do next, devalue the money in my bank account?
TProphet: That’s EXACTLY what they’re going to do.