Why I Don’t Think Hyatt Will Devalue Points Any Time Soon

I receive compensation for content and many links on this blog. Citibank is an advertising partner of this site, as is American Express, Chase, Barclays and Capital One. Any opinions expressed in this post are my own, and have not been reviewed, approved, or endorsed by my advertising partners. I do not write about all credit cards that are available -- instead focusing on miles, points, and cash back (and currencies that can be converted into the same). Terms apply to the offers and benefits listed on this page.

When I wrote that Hyatt points have remained a remarkably steady source of value for the last 5 years since they devalued their points, that even when they announced those changes in late 2013 they weren’t that bad, and since then even the modest shifts in award categories we’ve seen for hotels have been balanced my point was to re-assure about Hyatt points not to cause consternation.

However I received several comments along the lines of why are you pointing out to them it’s time to devalue? Hyatt is already aware of the economics of their program and when they last made changes.

And I received several reader questions asking me whether I thought a devaluation was on the near-term horizon. I do not. Never underestimate the ability of Hyatt to shoot itself in the foot or fail to seize an opportunity. It seems criminal to me, for instance, that they didn’t come out aggressively with a status match campaign aimed at disaffected Marriott Platinums coinciding with last month’s Marriott program re-alignment.

However there are plenty of reasons to think that a devaluation is anything but imminent.

Grand Hyatt Hong Kong

Hyatt Has Worked Hard to Fix the Program

When World of Hyatt launched nearly two years ago many of the chain’s customers were unhappy. Hyatt eliminated the ability to qualify for status through stays and they eliminated the progress towards status achievable with their credit card. So elite status was just much harder to get.

There were pluses and minuses to many of the program’s other changes. For instance members got complimentary upgrades to suites if available at check-in in addition to the confirmed suites they earned each year, but check-in amenities were replaced by free nights that expired 120 days after earning them (and Hyatt didn’t even always tell members when these nights were earned).

However over the last year we’ve seen several changes that attempt to really address the program’s shortcomings.

Hyatt has been working hard to repair the damage done to its elite program. I believed even with the program changes implemented two years ago that it was still the most valuable hotel elite program, and that if Hyatt’s footprint works for you it’s the best overall program. However they’ve clearly made efforts at a rapprochement it would seem odd to undermine that so quickly with a big devaluation.

Park Hyatt Buenos Aires

Hyatt Just Introduced a New Credit Card

It’s been just over two months since Chase launched the excellent new World Of Hyatt Credit Card that among other things makes earning elite status much easier for US members who choose to get the card. It gives you:

  • 5 elite qualifying night credits just for having the card
  • 2 more elite qualifying night credits for every $5000 in spend on the card (with no limit)

A 35 night customer with the card now is up to 40 nights. They need 20 more nights — earned with $50,000 spend during a calendar year — to reach Globalist status. They only need $40,000 spend each calendar year to keep the status, since that requires a total of 55 nights from stays and the World Of Hyatt Credit Card.

The card also now earns 4 points per dollar on Hyatt spend, so it’s become the best card to use when staying at Hyatt. It would seem odd to make this big investment with Chase and then undercut it right away with a devaluation and I’d expect the card’s issuer to have language in their agreement that would limit the ability of the program to devalue.

Splash Suite at the Andaz 5th Avenue Has – At Times – Been the Designated Suite for Upgrades

The Economics of the Program Should Be Stable

Hyatt offers a more compelling elite program than other chains because they offer suite upgrades that can be confirmed at the time of reservation for top elites. Globalists receive 4 per year valid up to 7 nights each which book into standard suites, meaning if a standard suite is available it can be confirmed on any eligible reservation — any booking made through Hyatt including award stays even. And elites staying 70, 80, 90, and 100 nights per year can choose an additional confirmed suite upgrade or 10,000 points at each of those thresholds.

Hyatt offers a stronger breakfast benefit (full breakfast, not continental) and a designated representative (‘My Hyatt Concierge’) for top elites as well without a 100 night and $20,000 spend requirement like Marriott has imposed.

However the earn and burn proposition is completely in line with that of peer programs. Hyatt is not more generous than other chains in awarding points. Here’s a comparison looking at how many points a general member and a top elite earns at the major chains and how much I believe those points are worth in order to calculate a rebate percentage for stays.

This chart is simplified — it doesn’t factor threshold bonuses for Hilton Diamonds, check-in amenity points, or the extra points you can choose every 10 nights (between 70 and 100) from Hyatt. But it gets at the basic point that programs currently hover around the same level of rewards for their basic program, and their 30% points bonus for elites isn’t as strong as what other chains offer.

Devaluing points would leave Hyatt uncompetitive in the hotel loyalty space.

Hyatt Needs to Offer a More Compelling Program Than Competitors

Hyatt has a footprint that is only 10% the size of Marriott’s. They are in many of the world’s major cities, but not in most of the smaller towns. And when you travel somewhere Hyatt may not be most convenient to where you’re going. It takes effort to stay loyal to Hyatt. You have to choose to stay at Hyatt, whereas you can pretty much stumble into a Marriott or Hilton close to where you need to be.

Starwood members were fiercely loyal because even though the earn and burn proposition (how rewarding SPG was for in-hotel spend) wasn’t very good, they took care of elite members and made customers feel appreciated. Starwood had to put their top customers at the center of everything they did, because they needed customers to go out of their way to stay loyal.

And Hyatt — whose top two program executives are ex-Starwood — needs to go even further, with only half the number of hotels that Starwood had.

Park Hyatt Vendome Paris

Hyatt Says They Don’t Anticipate More Changes

When Hyatt announced that they were changing the category assignment of just one hotel they simply said they were “unable to confirm timing for future changes, but we will notify you once we have further updates.”

However I pushed further and they’ve since clarified that “we try to keep changes to a minimum each year” and “at this time have no plans to make further updates.”

That doesn’t mean they aren’t going to move hotels around in category, they haven’t promised not to. But I take them at their word that they are not today planning to do so over the next several months.

That said, it’s been ‘awhile’ and there’s always going to be an itch especially as hotel owners watch the cost of Marriott Rewards participation fall. And they made changes to elite levels two years ago but not the award chart. So I’m not going to say never. But there are real fundamental reasons why Hyatt shouldn’t and if they’re behaving rationally I believe they won’t.

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

More articles by Gary Leff »

Editorial note: any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Comments made in response to this post are not provided or commissioned nor have they been reviewed, approved, or otherwise endorsed by any bank. It is not the responsibility of advertisers Citibank, Chase, American Express, Barclays, Capital One or any other advertiser to ensure that questions are answered, either. Terms and limitations apply to all offers.


  1. Good morning Mr. Leff, I am very interested in the new WOH card but am 7/24. If you were to hazard a guess when would you place your money on the card being ensnared by 5/24? Thanks in advance

  2. I am pleased with the improvements of the World of Hyatt program as well as the new World of Hyatt Credit Card. The benefit that I wish that Hyatt would implement would be the 4th or 5th night free. Overall, I enjoy the perks of being a Globalist and plan to continue to earn this status in the future.

  3. I do 100 nights a year with Hyatt and happy with program overall typically
    Free nights should have a shelf life of no less than 6 months
    when one spends so many nights with any program
    Otherwise you end up with resentment instead of good will
    Especially when a non elite has 1 year to redeem their free night
    with their credit card renewal who doesn’t have to stay one revenue night per year

    Hyatt also needs to address Andaz Maui’s highly dodgy standard room availability and lack of suite upgrades in the worst rooms possible even if you can find any of these available which is typically never
    I stay with Marriott in Maui now for revenue or points as I no longer
    trust Hyatt to police the hotels greed and micro managing some of their properties
    There is also no reason that their signature hotel Park Hyatt New York has. A dollar limit that doesn’t covet the cost of breakfast for one person let alone two as written
    The vast amount of full service Hyatt’s play fair it’s absurd they allow New York to invent their own rules
    They should in fact set the example of what Hyatt can deliver

  4. @Martin Alexander – I do not know at what point the card could become subject to 5/24, but all reports I’ve seen are that it is not yet/currently.

  5. The General Member Rebate (6-7%) maybe similar among hotel chains, but the atrocious 1:1 transfer ratio from Ultimate Rewards to Marriott makes the Hyatt program a MUCH better deal.

  6. Fantastic and comprehensive post. It’s a very compelling argument but I like what you said about never underestimate Hyatt’s ability to shoot themselves in the foot.

  7. I don’t know I would agree with the 1.4 cents a point valuation of Hyatt points… unlike other hotel chain, it’s not hard to redeem Hyatt points at some of desirable high end properties at well over 2 cents a point. I tried doing that with Hilton and I never been able to get much more than fixed 0.4 cents a point. Case in point, PH Tokyo, Sydney, Paris all costing upwards of $1000 per night can be redeemed for 30k points delivery 3.3 cents a point. Or even Cat 6 hotels in Hawaii often costing $500 or more per room. all can be redeemed for 2 cents per point or so. It’s not easy but I was able to redeem points at Andaz Maui for 4 nights last summer on points and even upgraded it to the pool suite which actually my kids loved… and also made a guest of honor booking for my friend (they will transfer points to me once they earn 120k points on to two hyatt cards plus I get 20k referrals for my trouble) at peak time in December for 5 nights. They will enjoy full breakfast buffet for 4 and waved parking and resort fee. No other hotel program delivers this kind of benefit and value. I am also a Hilton platinum and sitting on 400k points but hasn’t been able to find any good redemption value so far. I am praying that WoH keeps the program as is. no complain. just don’t mess it.

  8. @TJp74

    While low, his valuation of WoH points is consistent with his valuation of his other hotel points (they are low across the board when compared to other travel bloggers). I believe Lucky values WoH at 1.5. It’s not an significant deviation of a valuation from other similar peers.

  9. Since I’m often paying for others it would be nice if they credited the room nights for up to 3 rooms as SPG does (or did–no idea what they are doing now).

    It disappoints me I have to stay 55 nights when they offer Globalist to a bunch of company employees after 20 nights, sans the suite upgrades.

    I haven’t seen the 20 night Globalist offer for cc holders this year.


  10. Two posts on this in two days? You have good points Gary, but Hyatt points aren’t worth what they used to be, even without further devaluation.

    Your use of “average” redemption hides the fact that Hyatt has massively devalued the lower end of the award chart. (Lots of Cat 1s and Cats 2s going up to a higher category)

    Plus, Hyatt no longer runs good promos. Back when they used to run 75k points for 25 nights I always switched nights to Hyatt. Not anymore.

    By contrast, how many years has it been since Hilton was NOT running some variation on double points?

    When you put those things together, the earn and burn proposition at Hyatt is nothing like it used to be.

Leave a Reply

Your email address will not be published.