Hyatt CEO Mark Hoplamazian just made some comments about hotel loyalty programs, which I think OMAAT readers will find to be interesting. While I think some will take issue with the premise of what he’s saying, I’m not sure he’s wrong, though there is some nuance to it.
In this post:
Hyatt CEO says points can make people feel objectified
Hyatt’s CEO recently spoke at the 2026 International Hospitality Investment Forum EMEA, and the topic of hotel loyalty programs came up. World of Hyatt is one of the fastest growing hotel loyalty programs, now with over 63 million members (it’s still a fraction the size of Hilton Honors and Marriott Bonvoy, but it’s growing fast).
Hoplamazian suggests the speed of growth for World of Hyatt can be attributed to the program being built to prioritize connection over points, suggesting that traditional points programs can sometimes be a barrier to building a lasting relationship with hotel guests. Here’s how he explained the transition from Hyatt Gold Passport to World of Hyatt:
“We conceived of it as an experience platform, not a points program, because oftentimes the most angry and irate guest emails I would get are when people feel objectified. They feel like this is just about a commercial transaction, and that’s about as far away from the spirit of our culture as you can imagine.”
“It’s based on emotional relationships, not on transactions. So from the very beginning, we thought about World of Hyatt being an aperture into many experiences.”
This is far from the first time that Hoplamazian has made comments along these lines, and he has frequently emphasized how he thinks experiences matter more than points. For example, in 2023, he made similar comments about loyalty, when discussing Hyatt’s increasing leisure focus, largely in the form of growing in the all-inclusive space:
“We’ve decided that a more enduring way to actually capture loyalty is through great experiences, and that starts with leisure. So we’ve shifted the portfolio along a very deliberate position, which is we can drive true loyalty that’s experiential loyalty, more than it is the currency of the points and becoming a prisoner of the loyalty program. And that’s worked.”
My take on Hoplamazian’s points program comments
In the points world, I know many people take issues with Hoplamazian’s comments about how he thinks loyalty programs are more about the experience than the points as such. And I’m sure some people are even more frustrated by these comments in light of World of Hyatt’s impending points devaluation, whereby we’ll see the cost of stays at many properties increase massively during peak periods, reducing opportunities to get outsized value.
My general take is that the points aspect of hotel loyalty programs is “table stakes” nowadays. I don’t interpret Hoplamazian’s stance as suggesting that points don’t matter, or that those should be eliminated. Instead, I think he’s suggesting that there’s a lot more to a good loyalty program, and to building a long term connection with members.
Broadly, I do think too many travel industry executives overhype the extent to which they deliver a differentiated experience when it comes to guest recognition. However, I do think we have to acknowledge the extent to which World of Hyatt stands out in terms of helping travelers create meaningful experiences that go beyond points. For example:
- World of Hyatt Suite Upgrade Awards let travelers lock in a suite upgrade at the time of booking for up to seven nights with no capacity controls (as long as a standard suite is available), and that’s incredibly valuable in terms of enhancing the stays that matter most to members, and creating memorable experiences
- World of Hyatt Guest of Honor Awards are awesome for letting us extend elite perks to the people who are important in our lives, and that’s an opportunity to extend loyalty that you won’t find with many programs
- I think the single most important “experience” aspect of a loyalty program is making a good faith effort to deliver on the perks that are promised to members, and making members feel appreciated, and that’s something I truly feel World of Hyatt does more than its competitors
Let me expand on that last point. Marriott Bonvoy has a points program, has elite tiers, and arguably has a better rewards structure in terms of the number of points you earn for actual hotel stays (as a top tier elite, I value the return on spending more with Marriott than Hyatt — I earn 17.5x points that I value at 0.7 cents each, compared to 6.5x points that I value at 1.5 cents each).
But those points really are transactional. That’s not to say they don’t matter to me. Instead, it means I can crunch the numbers on how much of a return on spending I’m getting, and then that factors into my overall math on where I choose to stay.
Yet all too often when I check into a Marriott property as a top tier elite member, I feel like what I’d describe as being closer to indifference or contempt, rather than appreciation, for my loyalty. Especially in the United States, there’s just such little effort made to honor what the program promises.
I think this actually gets at Hoplamazian’s point. Marriott Bonvoy feels more like something that’s “just” a points program, rather than something that’s about creating experiences. I’d argue that if you want a good hotel loyalty program, you need both points and a big focus on experiences.
Now, to slightly counter Hoplamazian’s point, though, you don’t actually need a loyalty program to offer a great guest experience. Take Four Seasons, for example — the luxury hotel group does a great job tracking its guests, noticing their preferences, and making them feel valued, despite there being no actual membership number or points program associated with it.
Bottom line
Hyatt CEO Mark Hoplamazian has long been vocal about how he thinks experiences matter more than points when it comes to loyalty. While I think points are really important and I think the way he phrases things may suggest points don’t really matter, I agree with the premise of what (I think) he’s trying to say.
If you have a loyalty program that offers points but a lackluster guest experience, then that’s not going to create long term loyalty. Meanwhile if you have a loyalty program that offers points but has an even bigger focus on offering a good experience, that can create long term loyalty.
Admittedly many of us are frustrated by the upcoming points devaluation, but at least up until now, I think Hyatt deserves credit for its differentiated experience among the mainstream hotel groups.
What do you make of Hoplamazian’s comments about loyalty?
Hyatt's appeal for me over the past decade or two has been good full service hotels and a great loyalty program. Hyatt has been intentionally degrading both in a substantial manner for years, through numerous award and hotel category devaluations and largely ignoring the types of hotels that made them prized.
As a Globalist since the tier began and top tier before that I'm really starting to feel that Hyatt doesn't care about me nearly...
Hyatt's appeal for me over the past decade or two has been good full service hotels and a great loyalty program. Hyatt has been intentionally degrading both in a substantial manner for years, through numerous award and hotel category devaluations and largely ignoring the types of hotels that made them prized.
As a Globalist since the tier began and top tier before that I'm really starting to feel that Hyatt doesn't care about me nearly as much and depending on how bad the expected devaluation and annual hurtfest of higher categories shakes out - I suspect a bloodbath over the course of the next 18 months - I'm seriously considering ditching Hyatt. Even a couple of years ago I didn't believe I would say such a thing for many years.
Does he mean the destroyed experiences of a once great solid company with closing club lounges and subpar meager offerings in the clubs that still exist.
Hyatt once upon a time cared.
Experiences? does he mean getting 3rd party operators to replace the once proud pastry chefs that were once in many of their 4 or 5 star hotels.Lower quality less variety across the board
Poor in room amenities.
Hes clearly...
Does he mean the destroyed experiences of a once great solid company with closing club lounges and subpar meager offerings in the clubs that still exist.
Hyatt once upon a time cared.
Experiences? does he mean getting 3rd party operators to replace the once proud pastry chefs that were once in many of their 4 or 5 star hotels.Lower quality less variety across the board
Poor in room amenities.
Hes clearly out of touch with guest reality.
So we don't care about points?As or more important than experience especially as Hyatt as fast tracked to imitate Marriott and Hilton
Sure right discontinue WOH points that and see if he still has a job down the road.And many of us may move on if the point value falters badly enough.I'm already booking on 3rd party platforms where I get a much better ROI
Look at the Red Marlin at Hyatt Regency Mission Bay once stellar for breakfast and dinner and now about a Dennys or Holiday Inn quality
I wont stay there as a result
North America many properties are a disgrace compared to abroad
Another poster mentioned Hyatt Regency Times Square 29000 points a night lol
No servers @ Breakfast just grab and go like an upscale gas station and get on a line and typically no functioning HVAC in rooms or select public areas
Ill be at the Hilton and Intercon down the block Hard pass on Hyatt
It's such hypocrisy coming from Hyatt management. If emotional connections were so important, Hyatt would be expanding or improving service at several of its brands, not cutting back. Hyatt must remember that they are a hospitality company, providing service. Unfortunately they don't.
It seems the whole essence of Hyatt Place is transactional. Hyatt offers less and charges less (than Park Hyatt, not their peers for similar properties). Loyalty perks are mostly useless there (usually no...
It's such hypocrisy coming from Hyatt management. If emotional connections were so important, Hyatt would be expanding or improving service at several of its brands, not cutting back. Hyatt must remember that they are a hospitality company, providing service. Unfortunately they don't.
It seems the whole essence of Hyatt Place is transactional. Hyatt offers less and charges less (than Park Hyatt, not their peers for similar properties). Loyalty perks are mostly useless there (usually no suites, free breakfast for all anyway). Being given bottled water at check-in really drives my emotional connection while carrying up the water in one hand to my room and my luggage in the other. Maybe Hyatt could always stock the room with bottled water instead.
WoH is their devised loyalty scheme and we are just playing along when it is to our benefit. They must think it drives sales, and shouldn't be disappointed if sales slip if WoH offers customers less.
It would make sense if Hyatt were not consistently downgrading the experience at its hotels. For example, all of the Hyatts that have closed executive lounges/clubs. Now my elite 'experience' is breakfast in a crowded buffet with screaming kids, a wait for a table, and a long wait for the check from the overworked staff.
Mark doesn’t know what the word “aperture” means.
I have to wonder if he's going to kill his golden goose. Points are a big part of the value for a hotel brand running an "asset light" model, and by trashing it, Chase (and Hyatt) will suffer longer term.
If I just wanted experiences, I'd be at Four Seasons before Hyatt any day of the week.
The relationship to a brick is purely transactional. The corporation does not love you back.
Agree with others, there is a major screwing brewing.
The only thing Hyatt has going is the program. Take that away and you are left with overpriced, mediocre hotels with an extremely limited global footprint.
That's funny - my "experience" as a first time Explorist is that my two bottles of Aquafina now come with a handwritten note.
Huge devaluation incoming.
This is what we refer to as gaslighting!
If I had a nickel for every time a corporate type has told me what unprecedented value they are bringing the equation, while collecting their millions and screwing over regular employees and customers… I would have many nickels.
In a way, it’s sad. But another way, it’s hardly surprising. Hyatt is big enough now that this sort of thing is bound to happen. Time to just be...
This is what we refer to as gaslighting!
If I had a nickel for every time a corporate type has told me what unprecedented value they are bringing the equation, while collecting their millions and screwing over regular employees and customers… I would have many nickels.
In a way, it’s sad. But another way, it’s hardly surprising. Hyatt is big enough now that this sort of thing is bound to happen. Time to just be a free each and accept what you can get. It doesn’t matter anymore. All points hotels are the same now
You mean like the "Experience" I had at the Hyatt Regency Times Square where I had to find a roll of toilet paper in the public restrooms because housekeeping didn't supply my room with one?
Or the "Experience" of a mobbed cafe/mini restaurant every morning which apparently wasn't designed for the capacity of the Hyatt Regency Times Square?
Got it.
Sure guy, and one of the things necessary for having an emotional connection is trust, and you lost that trust. Though the emotional experience of earning your points thinking I'll get a stay at a park Hyatt, but then only getting a Hyatt place sounds really interesting, I think I'll pass.
The connection is because of the points. While the elite status benefits count for a lot, they don’t count for as much at limited service properties and count for little until qualifying for Globalist.
Oh no… we’re about to get screwed… RIP.
Exactly. Hyatt wants to destroy the value customers get out of the points and instead count on “elite status benefits” which really are thin unless earning at least 60 status nights in a year.