Hyatt’s CEO is gaslighting customers – telling them that they like that their points are now worth so much less. Hyatt’s new award chart has 78 different price levels for hotels. Top properties can now cost up to 67% more points. Spending $45,000 on a Hyatt Visa used to guarantee you a night at the Park Hyatt Vendome Paris. Now that same night can require spending $75,000 on their card.
Along with that devaluation, Hyatt projects that they will double the loyalty program’s profit. What bothers me most, though, is that their CEO is gaslighting us over it. It turns out it’s not a devaluation. It’s a member satisfaction initiative that just happens to require 67% more points!
According to Hyatt’s CEO Mark Hoplamazian, people love the devaluation . The reaction by members has been “positive.”
WSJ: You have a very dedicated loyalty-member base. Are some of the recent changes to the program, like expanding from three tiers of redemption to five, a way to stealthily devalue points?
Hoplamazian: Frankly, the reaction’s been overall positive. We’ve maintained a fixed award chart, so you don’t have to guess. Some of our competitors and others in the travel industry have gone to a dynamic award chart.
We also have a very unique offering, which is “guest of honor,” which allows you to gift your status and your benefits to someone else that you really care about. And while we have adjusted a number of hotels, that’s the result of changes in average daily-rate levels and costs.
The award chart may not be dynamic, but apparently Hplamazian’s definition of ‘positive’ is.
When members said they wanted more redemption options, I don’t think they meant 78 different ways to pay more points. But I guess in some sense the positive reaction might be true – if you only survey the finance department on North Riverside Plaza.
Guest of Honor is something that has nothing to do with Hyatt’s points. And it’s not something new to offset a devaluation of those points. It’s ‘Globalist status for a stay’ so you get breakfast and late checkout. And it takes staying at least 40 nights with Hyatt in a year to earn one. That benefit, too, was devalued two years ago (Globalists used to earn an unlimited number of these to be used when redeeming points for someone else).
Mentioning this benefit, which hasn’t changed recently, as a response to the brutal devaluation Hyatt just pushed through is a complete non-sequitur. It’s also not the benefit I’d mention, since after this interview the single most valuable Hyatt benefit may be the ability to suspend disbelief.
I’m genuinely struck with Hoplamazian saying that he’s being ‘frank’ when telling us how much we like it that our points are worth less. It was genuinely enlightening to learn that I actually wanted this.
Destroying credibility in one or two sentences.
Hop Amazing gaslighting
What an f’ing asshat. Yes, I love being Globalist.for a stay — in fact, EVERY stay! I supoose that will be the next shoe to drop.
Does an idiot such as this guy not realize he is basically telling long-time loyal members that they should stay somewhere else?
You don’t have to tell me again. Buh, bye, Hyatt. It was nice while it lasted.
They really should conduct an interview with real Globalist guests and I can guarantee that everyone will say that the CEO is lying and out his butt.
They should market the devaluation as greater availability. Just like you can get business class seats easily at 400k miles when there was no availability at 60k or 80k. I expect Ventana Big Sur at 75k to be much more available than it was at 45k. But the thrill is gone.
Everyone wants to make more money but wants everything to stay the same. Wages go up, prices go up. Why should loyalty point redemption be any different? Hotel expenses are going up, their prices are going up, why shouldn’t redemption? I’d like to get a room for 10K points and fly first class for 25K, but it’s not realistic.
@ nsx — I hope you are joking. Iv’e never had much difficuly finding Hyatt availability — suite upgrades, yes; base rooms on points, no.
They should market this for exactly what it is — GREED. Celebrate it. It’s the American way! Have a big Merica 250 UFC match on the lawn of Hyatt headquarters, replete with hookers and free K for all techies!
@OneXMarine – they didn’t need to restructure the chart for that, they had award categories and those still change. holding categories constant hotels generally aren’t going up in cash price nearly as much as points prices.
I for one am done going out of my way to requalify for GLOB status. This devaluation was the final nail in the coffin.
They haven’t even done anything meaningful to expand their footprint, outside of adding more all-inclusive properties and partnering with Mr and Mrs Smith. However, the redemption rates for the A/I properties are absurd and you don’t get any elite benefits at Mr and Mrs Smith properties.
With all these hotel programs making loyalty less compelling, it just makes sense to just book via the bank travel portals moving ahead. Sure, you don’t get any benefits like breakfast, upgrades, and guaranteed late check-outs. However, the money that you otherwise would’ve spent towards requalifying can be spent on these add-ons whenever you need it.
Delusional or lying, he shouldn’t be in charge of anything.
Siri- how me what total bullshit looks like
Do they think we are fools? Why yes, they do!
Do they think we are fools? Why yes, they absolutely do!
He is justing taking a page outta the President’s playbook…lier, lier pants on fire…
I was for more than 40 years a Delta (all the way back to Republic) and Marriott loyalist.
At this point, I no longer care what the hotel or airline is. Thousands of nights in Marriotts and 3 million miles on Delta both now amount to basically nothing.
Pick a credit card that lets you use your points anywhere. Skip the reast!
Do they think we are drinking the Koolaid? I will refocus to Hilton and Marriott which also have good credit cards. It’s actually offensive that they think that massive devaluations are positive!
Positive reaction to these Hyatt award night pricing changes? I would have a far more positive reaction to the FlyerTalk Mod Do being held on Friday the 13th — at the same LAX area conference room as last year.
nsx, isn’t November the 13th a Friday?
The Chicago Way
Hyatt used to have a good program. “Used to” being the key words.
Maybe he meant investors not members lol. I don’t believe that one bit.
If this guy believes what he’s saying, I think someone should schedule him an appointment with a shrink due to delusions of grandeur.
The guy is auditioning for a job with The Idiot. Hired!
“…which allows you to gift your status and your benefits to someone else that you really care about.”
And here all this time I thought they were supposed to be given to people you hate.
Sounds delusional like someone else. I am almost at globalist for the next year then I will stop just like other programs. When the value is gone no need to pursue the status.
Maybe he meant Hyatt points are still better than Marriott and Hilton. He’s not wrong there.
Nailed it. I myself love paying more for less.
Did anyone tell him that people won’t stay in his mediocre hotels with limited footprint if they can’t use the points for the 10 decent hotels Hyatt has?
This statement was made in an interview. Its a shame that the journalist did not pushback against that statement which is 100% inaccurate.
Typical tone deaf CEO douche.
Who on earth has reacted positively to this devaluation? I’m trying to understand his logic. The website crashed the last day because people were draining all their points.
Hyatt points are STILL worth far more than any others. After the devaluation, I can find lots of hotels and stays for 2-2.5 cents per point. What is the alternative? Many of the Chicago Hyatt’s I use have had the same points value for many years (12-15,000) while the cash cost has risen.
The only thing I love more than the massive award bloodbath is that next year will be much worse.
I can’t figure if this guy is lying, ridiculously misinformed, or wildly delusional.
I sent a note to Hyatt customer care referencing this dumb interview. I shared my thoughts and how the devaluation has pushed me to stay more at Marriott.
What this guy forgets is that many of us have to work Harder and go out of the way to be loyal to Hyatt. Take away the incentive through points and benefits, and Marriott is far easier for a high spending biz traveler like me.
@nsx at FlyerTalk — 100%. Hyatt is becoming SkyPesos.
@Mike P — That was actually a good one! Bah! (Btw, PH Vienna is excellent.)
Where did he say member feedback was positive?
He just said feedback was overall positive but never said whose feedback, could be feedback from Wall Street, Hotel Owners, The Board or any amount of other groups who probably are good with the devaluation
Per comments above, a serious reporter *would* also interview some Globalists and report on their opinion. Unfortunately, journalism long ago stopped being a serious business.
@Thing 1 — Naw, real journalists do still exist (you know, the ones with actual ethics, who hold power to account, and haven’t sold out to billionaires.)
It’s just that most media companies have been bought by corporations, who do not care about anything but profit and maintaining power for themselves.
So, let’s not denigrate those that still actually risk their lives and livelihoods to report the truth. It’s nuanced.
We should boycott Hyatt. I am a Globalist and after my advance bookings are complete I am done with Hyatt. Not going to stay at a hotel who doesn’t value their customers hard earned points. These hotels are not loyal. The members has made Hyatt into what they are today and they screw us.
It’s like Hyatt’s CEO and corporate leaders are taking lessons from Marriott.
I’m with Hyatt’s CEO! “Everyone LOVES having their points devalued and spending more for less”
Said no one ever….. Smh
Positive in that the devaluation wasn’t nearly as bad as other airlines or hotels. I did see the silver lining with Hyatt
Hi FLYGVA.
Is it true that you let the other FT Mods know about Friday the 13th this fall? It would have been more amusing if Friday the 13th was in October closer to Halloween, as then you could say “Boo!” and it would be seasonal.