Hyatt’s credit card will go global: Hyatt held its investor day on Thursday and they shared that they are “targeting Germany and Spain” for cobrand credit cards and that they’re looking at the UK, Japan, and Mexico markets for cards as well.
And they revealed other things about the program during their presentation.
Hyatt succinctly explained the business case for Guest of Honor awards. It isn’t just a benefit for elite members to be able to share their experience. It captures the Guest of Honor guest’s future business, too.
Program members spend more. And the gap has grown. That makes sense because Hyatt has increasingly skewed premium in recent years (though much of their future growth comes from select service and soft brands) and that suggests repeat customers will be higher spenders.
What is impressive is a 38% increase in members with 100+ qualifying nights a year. Some of that may be increased credit card spend (since every $5,000 spent on the consumer card earns 2 qualifying nights and every $10,000 on the business card – which was only introduced in October 2021 – earns 5 qualifying nights). This underscores Hyatt introducing milestone benefits beyond 100 nights for 2024.
One former Chase card executive has told me that the Hyatt product hits above its weight for them. It’s a smaller program, but far more valuable to the bank than size would predict.
Cardholders stay 221% more often than non-cardholder members and spend 28% more on their cards than holders of comparable travel co-brand cards.
They believe they will “deliver more than double the EBITDA contribution from our credit card programs and third-party fees next year” without international cobrands. Lowering costs through a massive devaluation of their points is one way to get there! This comes right after they won a tax fight that could save the loyalty program $589 million.
This whole Hyatt skews premium thing is such a myth. The average Park Hyatt is below the average St. Regis or Waldorf Astoria. It’s certainly not a peer of Four Seasons or even Raffles. Hyatt has basically stopped developing Hyatt Regency properties in North America. Sure, they’ve acquired high-end resorts and all-inclusives but they have almost zero actual growth in premium brands outside resorts and all-inclusives. The average customer now has to spend far too much time in a mediocre (at best) Hyatt Place in some random city to accumulate enough points for redemption.
Globalist is now the new Bonvoy Titanium. So diluted and not really worth the spend. You need to lock in those suite upgrades so far in advance like a year for anywhere good.
They just better not mess this up which they are clearly doing, they earned my loyalty and spend but could easily lose it. Personally I also like cash and points, I thought it was a good mix and value. Headed to the Churchill London for five days with a suite upgrade confirmed. Please pay attention Hyatt, your program is why I go out of my way to stay at one of your properties and use your credit card, dont give me a reason to not be interested anymore.
@ Leonard
Your sentiment is how many loyalish members feel.
Chase needs Hyatt.
Points changes from the deval have not yet refunded into my account. Improve your tech.
@Nick and others – I would be willing to overlook devalued points if there were real, tangible benefits that rewarded and recognized me for staying 75 or 100 actual butt-in-bed nights per year. Club lounge access is useless these days because most Hyatt Regencies no longer have a club lounge. The breakfast benefit is okay but many properties limit to a buffet with mediocre food instead of letting you order off the menu. The two free bottles of water a day is a joke.
Screw over consumers. Profit. Got it.
Glad to have closed my WOH card.
Hyatt is making a dangerous bet: that customers will accept less and stay loyal. That may work for Delta, which benefits from captive audiences at its fortress hubs. Hyatt has no such advantage.
Anecdotally, like me, a few Globalist i know, are already looking for alternates. So this will backfire on Hyatt pretty quickly.
Hyatt lacks the ubiquitous footprint of Marriott or Hilton. If they strip away the premium elite experience and/or the value of World of Hyatt points, they destroy the only competitive advantage they have.
@BBT: Good point. I can’t think of a single U.S. market in which Hyatt (1) has the best hotel or (2) is the leading chain. Hyatt is strong in Chicago, Denver and San Francisco but not market-leading.
“Man projects his business with Hyatt cut in half after World of Hyatt loyalty devalutaion screws him over!”
I think the deval hasn’t fully hit yet. My redemption last week got 3cpp but I don’t think that will not last in the next couple years. I cancelled the WOH card early this year but it’s nice to see that they are giving cardholders some attention. I could pick up the card later if I need to but I’m fine without it.
I can’t answer to the international aspect but Hyatt is Bovoying exceedingly loyal customers like myself who spend more and intentionally make irrational decisions in order to keep our status and stay with Hyatt due to (perpetually watered down) elite benefits. I’m trying to figure how driving off your most loyal customers makes financial sense but they apparently think that’s a wonderful idea.
As a business traveler who maintains top status with three chains, gold status with a 4th, Hyatt still has the most benefits for top status.
Hilton, screwed everyone over with their points devaluation, even ihg is better now.
Two free bottles of water, yeah maybe $4 in value.
But guess what? They’re often in my room. Refreshed daily. Convenient. I’m thirsty, but don’t feel like going to the hotel lobby. There’s my free water. Hyatt perks work out great for the true road warriors.
Just my two cents, worthless since we’re stopped minting pennies. Guess you’ll have to round it up or down, up to you.
Fortunately for Hyatt, Hilton totally lost me with the $ credit for breakfast and also closing some lounges. Add in higher night cost and points cost, ouch. But yes, the chase is less fun and the rewards being nibbled away. The very thing they are happy about in the slides shared could melt away. I don’t get fancy with IHG most of the time, but I get value in terms of nights and they are nearly everywhere (except Brazil) so if I had to choose which of those two to let go, it will not be IHG I let go. Also top status with Marriott which was going to be the first to go. We shall see. Sometimes business wisdom comes from mistakes. Like in real life, better to learn from the mistakes of others vs one’s own.