Loyalty programs are big businesses, and they can be lucrative both for travel brands and consumers. As you might expect, this also means that the loyalty industry has quite a bit of fraud from many parties. This is definitely more rampant and organized in some markets than others.
Continue reading: Chinese Hyatt Scam To Sell Elite Status Backfires, And Now There Are Lawsuits
Share your questions, experiences, and thoughts below.
China- land of fraudsters and cheats. Nothing surprising. They behave like that everywhere.
I know of a guy who would find the cheapest properties, call a manager at these properties, and coordinate phantom stays. All of these properties were happy to receive the revenue.
If check-in and not staying is acceptable to you. What about electronic check in and not staying, so you are okay too? If the hotel manages the check in, instead of you checking in electronicly, is that okay?
I tried to redeem miles for the UrCove Hangzhou West Lake earlier this year (I wasn't aware of this scam) and when I arrived at the hotel, they told me they were no longer part of Hyatt and couldn't see my booking, even though I had a booking confirmation from Hyatt itself.
I had to pay for my stay in cash and try and sort it out with Hyatt afterwards - I didn't have time to wait around at the hotel and try sort it out with the live chat. The Hyatt representative was quite confused because their systems showed the hotel as still part of Hyatt but they called the hotel who confirmed they were no longer part of it. I never heard what happened in the end but the hotel no longer appears on the Hyatt website. Hyatt gave me some bonus points as compensation (the cash rate wasn't too bad).
A company like Hyatt should be more sophisticated when operating in a country like China, which as rightly pointed out, is the land of crooks and cheats.
Hyatt is ultimately responsible for the quality (or lack thereof) of their franchise operators. And for loopholes in their own system.
But alas, sadly all too many of us are used to dealing with the fraudsters that come out of mainland China.
Certainly NO property owner in the United States in any hotel network would ever try to pull anything funny. Whether like this scan or another.
No sympathy for either. In fact this is a warning to all US companies doing business in China. China cares only about China, they will screw you over and leave you with nothing, just as these hotel owners were doing. Two groups of Chinese scammers partnering to screw over a US corporation. Nothing new. But hey, at least they are screwing their Pritzkers komrades.
Give me a break. This holier-than-thou attitude is why the rest of the world hates us. Our country is run by cheat, for goodness sake!
We got plenty of those in the good old US of A. Our president is a well-known himself. We have no right to lecture the rest of the world.
if a customer is told by a hotel “hey, you can pay X amount, and you’ll get Globalist status, which gets you X perks,” why would he think this is a scam and not allowed by hyatt?
Hotel chains run official promotions or offer avenues all the time where you do not have to stay to earn status. (e.g. credit cards, or double nights). You're expecting too much from the average customer to be able to tell the difference. Or even understand the difference between the loyalty programs, the hotels, the hotel management companies, and the hotel owners.
it seems that only the hotel should be in trouble for fraud here.
A quick RedNote search would tell you there are still plenty of people selling phantom stays for Hilton and Marriott in China. This is the tip of an iceberg.
I agree. They saw something coming from Hyatt hotel and believed it is a genuine offer from the company. Maybe not all - but at least some.
But, of course, conveniently, Hyatt hotels are not part of Hyatt and are independently owned entities.
Should I be worried accepting a comped drink from flight attendant on AA regional flight? Cause, you know, Envoy is not part of American and I may have violated some rules?
Yes the members should be held equally liable.
Hotels wouldn't sell these packages if there wasn't demand for them with the Chinese masses trying to cheat the system.
I missed Chinese are so rare, they don't even mention them in science fiction stories.
This is why brainwashing propaganda is so effective. You're one of the billions example.
They make you believe "China cares only about China, they will screw you over"
The truth is, Chinese scams other Chinese too. They don't care about China. They're just good a making quick and easy money. Just like the West are good at propaganda.
If it's any consolation, "Pritzkers komrades" probably scam them more than they scam US. And proceeds goes discreetly to Zion.
"I know of a guy" who would make up stories of "coordinate phantom stays" with the managers.
All of these properties were smart enough to avoid getting caught by "mystery shoppers" than making some few extra money.
I had to return Apple products for that very reason.
They even scam me by only mentioning Cupertino but nothing about child labor.
Exactly.
They always upgrade me to a suite because of my status.
They never tell me a suite isn't available even if I can book 5 rooms right at the front desk.
Same with 4pm late check out because they will never make up excuses for being fully booked the following day. It's always a wedding right?
They also give me a full breakfast not some special "elite member menu" with pathetic options.
And the club lounge is always open without staff shortage since pandemic. Because they don't have made up problem about hiring a single person for the last 5 years?
Never happens in US properties at all.
Maybe they are more sophisticated than you think.
FWIW, There is no Hyatt in Israel.
If you don't count The Smiths independent travel club.
To Jim's defense.
Gary from TMZ bought AA CK status just by "donating" to some tree conservation if that's even a thing.
Ben just didn't believe in greenwashing enough to earn CK. But he did greenwash enough to be flying flAAgship for cheap.
Now before you hypocrites blame Chinese members for abusing this. Did UrCove exclusively sell this deal to Chinese or everyone. And only just those FOMO hypocrites who missed the bandwagon is making noise after the fact.
Not that Chinese UrCove should get away with this. Hyatt just cares about their customer's money so much they turn a blind eye.
You could tell many of the Chinese "Guests" in the Lounges at Grand Hyatt KL, Hilton,KL JW Marriott KL and Hyatts in Bali did not belong there. they come in with Large Bags (so called Purses) and clean out The Lounge in minutes if not seconds.even their children are trained to go after the Shrimp, Crab, Mussels,etc Fill up the Plates and slide the Delicacies into the Bags/Purses.
You could always tell they sit away from the main Dining Tables so no one is watching them. Breakfast is another one they go after. The croissants,Pastries,Jam & Jellies Disappear quickly.( Not that Globalists will not do that,But they always are mindful of their statuses) This got so bad that Hilton KL will not even let you take a cup of water out anymore!
Wait, what?!? I heard you could effectively buy EXP with the cancer thing - I hadn't heard about buying CK!
These so called "guests" are just cleaning out newbie who don't know the ropes yet. That's why they're too obvious and target just f&b.
The real pros of cleaning out in matter of seconds don't operate in hotels for cheap freebies.
The notorious pros are Bernie Madoff, Nick Leeson, Enron, Theranos, FTX etc. They are so good, people are even giving them money themselves. (hint: none are Asians but 3/5 or Bernie SBF Fastow have one thing in common)
It's like "Shrimp, Crab, Mussels, croissants,Pastries,Jam & Jellies " jump into the purse on their own free will.
The local hotels should certainly be responsible. It would be difficult to prove if the customer knew what they were doing or not. As for the customers, why couldn't they just register a new account?
The people benefiting from the scam should be penalized too. Can't seriously suggest that they didn't know what they were doing was improper. They were not even staying at the hotel. Regular hyatt status holders should not be forced to compete with scammers like this.
Prepaid IRS tax at 1.75% cost 175 usd for 4 elite nights. Assume points worth 1.5cpp. net cost for 4 elite nights is 25 usd for 4 elite nights. That is far cheaper than the so called phantom stays
I mean, the hotels profited knowing they were committing fraud. I certainly think the customer should have their statuses revoked, but not liable for damages. It's the hotels with the money now, after all.
Lol meanwhile largest scams are all originated from USA… from financial crimes, tax evasion, military industrial complex, big pharma, etc…
Do you know how much military contractors charge for MRE? Thousands of dollars per pack..
China cares only about China meanwhile American individual cares only about themselves because of so called individualism.
It could be worse...they could be Marriott. At least Hyatt seems prone to putting stick about on brand standards.
Are you seriously at such a point in your HAPA wokeness that you take issue with pointing out 'Chinese' when a hotel brand that operates exclusively in China advertises its scam on Chinese social media?
this is no news, it has always been on TaoBao to sell the status by "fake" mattress run , the price is about 1.5k usd Not to encourage this but I have freinds and family done this all the time. Urcove seems to be the one allowing it. Same with marriott fairfield in China, people spend to titanium will run you about 800 usd cheaper if you have the credit cards with elite nights
some hotels like marriott when running stay 1 night earn 2 elite nights may be worthy.
yeah but world lives on china's thriving economy, why don't you think us cooperate wouldn't do anything ? cooperate greed my friend, they still thirst for 1.4 billion peoples business.
doesnt matter play the game take the pain, you think cooperate america greed cares? as long the cash flow comes in when they stay at the hotel ,who gives a Sh*t about little elite perks ? you need start worrying when there's no more elite status perks when no chinese guests are staying, US / rest of world is not where the money at when you talkin about the rising of middle class.
Well , believe or not , most Americans doing the same sh*t in Vegas when Hyatt was partnering with Excalibur's. people have insiders with phantom check in doing the elite challenge, why you think the Parntership discontinued soon after covid ? its human greed, this doesn't has to do with racial and ethinicity. Hell we have a legit $0 spending on rooting policy in place for crise sake.
Well , believe or not , most Americans doing the samething in Vegas when Hyatt was partnering with Excalibur's. people have insiders with phantom check in doing the elite challenge, why you think the Parntership discontinued soon after covid ? its human greed, this doesn't has to do with racial and ethinicity. Hell we have a legit $0 spending on rooting policy in place for crise sake.
In what world are marriott points worth 1.5 cpp? And how does your math work here? 1000 dollars of tax spend nets your 4 elite nights? Overpaying your taxes by 20000 dollars and waiting for a refund?