Hyatt CEO Mark Hoplamazian was just interviewed by the Wall Street Journal, and he made some comments that I think a vast majority of World of Hyatt members would disagree with. Now, I’m actually going to ever-so-slightly defend him here, so let me explain.
In this post:
World of Hyatt members don’t mind major points devaluation?
We recently saw World of Hyatt devalue its award chart considerably. While I’m grateful the program has an award chart at all (unlike Hilton Honors, IHG One Rewards, Marriott Bonvoy, etc.), there are now five tiers of award pricing within each of the eight hotel categories, and peak season award pricing has increased by up to 67%. In other words, the highest value awards just got a lot more expensive.
Hoplamazian was asked about the recent program changes, and here’s what he had to say:
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.
Hoplamazian is pushing it, but in his defense…
Let me start by saying that I respect Hoplamazian. He’s a stand-up guy, and I think among the major hotel groups with loyalty programs, he’s the one who best understands hospitality, genuinely tries harder, and is typically an honest narrator on the industry. Contrast that to Marriott CEO Anthony Capuano, who I imagine could be running a chain of Pizza Huts, for all he cares, as he’d focus on growth and margins over guest experience in the same way he does with hotels.
I frequently call out travel industry executives for gaslighting customers, and it’s something that some brands are particularly notorious for. For example, no one loves making a negative change and then claiming it’s an “enhancement” quite like Lufthansa Group.
The gold standard for communication is Air Canada Aeroplan. For example, the program is changing its award chart (mostly for the worse), and when communicating the change to media, they wrote “we don’t take increases lightly, but they’re sometimes necessary as our underlying costs rise.”
That’s how you do it, because that’s the truth. And I’m not surprised that kind of communication comes from Aeroplan, since Air Canada COO Mark Nasr is the person behind the program. He’s a huge airline and loyalty program nerd, so he understands things from the perspective of a member and customer, and that’s an incredibly underrated leadership skill.
Either Hoplamazian isn’t being truthful with his statement, or he’s really being shielded from member feedback. I don’t think I’ve ever seen an award chart devaluation at any program where the member feedback was “overall positive.”
Now, in Hoplamazian’s defense, here’s what I’ll say. This was a short interview with just four questions, and one of those was about the loyalty program change. Hyatt is trying to increase its margins and greatly grow World of Hyatt.
It’s not like Hoplamazian is going to say “our members are furious, but we just want to make more money,” or anything like that. I sort of take his answer as something that’s intended to brush off the question, with the “overall positive” being in reference to general member satisfaction with the program. As you can see, he immediately pivots to talking about how the program at least has an award chart, and then talks about the awesome Guest of Honor perk.
I do think there’s a difference between putting out a press release patting yourself on the back for a negative change, vs. what we’re seeing here, where it’s in response to an interview question. Again, I’m not excusing the response, it’s just not the most offensive gaslighting I’ve seen of customers… there’s lots of competition for that, admittedly!
Bottom line
Hyatt CEO Mark Hoplamazian just had an interview where he was asked about the recent World of Hyatt award chart devaluation, and he claimed member feedback was “overall positive.” That’s… obviously not true, and I wish he would’ve been more honest than that.
I get that this is just how the corporate world works, but it amazes me how often we see big companies spin negatives as positives. I’m not sure if they think they’re actually convincing us, if they’re trying to convince themselves of something, or what. In fairness, I’ve seen much worse offenses, and it was clear Hoplamazian wanted to change the topic.
What do you make of Hoplamazian’s devaluation comments?
Just wanted to share a data point after the Hyatt award chart changes.
I had already booked the Grand Hyatt Singapore Terrace Suite for 4 nights this summer for 200,000 Hyatt points. After the recent award chart update, I noticed the same stay dropped to 180,000 points. I contacted Hyatt customer service via chat, and they were able to reprice the reservation and refund me 20,000 points.
I also checked Andaz Singapore and noticed its...
Just wanted to share a data point after the Hyatt award chart changes.
I had already booked the Grand Hyatt Singapore Terrace Suite for 4 nights this summer for 200,000 Hyatt points. After the recent award chart update, I noticed the same stay dropped to 180,000 points. I contacted Hyatt customer service via chat, and they were able to reprice the reservation and refund me 20,000 points.
I also checked Andaz Singapore and noticed its award pricing has dropped as well after the chart changes.
It depends. In China, lots of cat1/2 hyatt regency and grand hyatt cost less points after the change.
I didn't realize that smoking weed made it to the boardroom. Lost credibility as a CEO with that comment.
I've had a "overall positive" experience turning into a free agent thanks to 2 devals in 1 year.
So, that's a win, right?
This is the inevitable outcome of the Hyatt credit card/points parrots happily reporting that "you know, the devaluation is not really that bad" with a smile. I must have heard this from a dozen different YouTubers. Half of them actually did look like they were happy with the devaluation.
That's like listening to Trump about the Iran catastrophe.
I get the need to align points to the market rate to an extent. However, I live in Australia and travel mainly to Europe. I’ve noticed that hotel prices have come back considerably since that post COVID surge. But award rates keep climbing and significantly. So there is a disconnect. Simple answer they think they can get away with it, looking around at competitors etc. Let’s see what happens when there is another downturn. PS....
I get the need to align points to the market rate to an extent. However, I live in Australia and travel mainly to Europe. I’ve noticed that hotel prices have come back considerably since that post COVID surge. But award rates keep climbing and significantly. So there is a disconnect. Simple answer they think they can get away with it, looking around at competitors etc. Let’s see what happens when there is another downturn. PS. Don’t be blindly loyal, it really goes one way!
Ben, there you go again, defending the hand that feeds you. Your credibility drops further everytime you stick up for these people. It actually WOULD be refreshing if Hoplamazian said "we are sure out customers will be furious cuz we just wanna make more money." That IS the reason for the changes and the reason you give every loyalty program a pass on these things is the same reason. Have a little spine.
I know that I’m in the minority here, and I don’t want to get slammed for sharing a datapoint… but since launch of the new award chart, I’ve actually saved points on all four of my existing stays - one at the HR Cleveland, one at the HR Buffalo, and two at the HR Miami. I must enjoy traveling on low demand days, but each stay repriced down to 7.5k, 8k, and one night was...
I know that I’m in the minority here, and I don’t want to get slammed for sharing a datapoint… but since launch of the new award chart, I’ve actually saved points on all four of my existing stays - one at the HR Cleveland, one at the HR Buffalo, and two at the HR Miami. I must enjoy traveling on low demand days, but each stay repriced down to 7.5k, 8k, and one night was 10k of the seven total nights split among the four stays. While I am very disappointed that future aspirational stays were heavily devalued, I’ve had a good experience since the “devaluation” as my typical travel brings me to run-of-the-mill Cat 2/3 HRs during off-peak dates apparently. Don’t shoot the messenger, just a DP.
Who knew?.I just need to shift my definition of aspirational to Cleveland and Buffalo and my entire perspective will change!
Seriously, if you're looking for aspirational properties in the US, that's a fools game. Few could possibly save up enough points for that. It really isn't that bad if the cheap US Hyatts now cost a little less (you do need to rack up nights to be a globalist) if you can still redeem at affordable aspirational properties overseas.
Your DP is probably valid for low-category hotels. Sadly, not what most readers of this blog aspire to stay on points... because cash rates are pretty cheap there usually.
Ben,
It is frequently said here and elsewhere that Hyatt is the only hotel program with an award chart, but is that actually true except in the most literal sense? At this point Hyatt and Hilton's award program structures are very similar: there is an award price, the price can be higher or lower loosely according to the cash rate, the award can be taken out of inventory (just taken out for Hyatt or...
Ben,
It is frequently said here and elsewhere that Hyatt is the only hotel program with an award chart, but is that actually true except in the most literal sense? At this point Hyatt and Hilton's award program structures are very similar: there is an award price, the price can be higher or lower loosely according to the cash rate, the award can be taken out of inventory (just taken out for Hyatt or priced to an absurd level in the case of Hilton). Yes, Hyatt has a chart you can look at but Hilton has an almost identical structure just not memorialized on a chart. Am I missing something here or is Hyatt having and eating cake?
Basically...
We expected the devaluation to be an apocalypse (in theory, nightly point rates could increase for some hotels by like 50%+ if hotels liberally used the highest available rates for their category).
It ended up being merely bad (most hotels had similar-to-slightly-worse nightly rates compared to before, since they skewed towards the lowest/lower available rates for their category), with the potential to get worse over time (because why create those higher available rates if...
Basically...
We expected the devaluation to be an apocalypse (in theory, nightly point rates could increase for some hotels by like 50%+ if hotels liberally used the highest available rates for their category).
It ended up being merely bad (most hotels had similar-to-slightly-worse nightly rates compared to before, since they skewed towards the lowest/lower available rates for their category), with the potential to get worse over time (because why create those higher available rates if they don't plan to use them.
It was "good news" compared to our what we expected ~2 weeks ago, but "bad news" compared to our reality 2 months ago.
It sure looks like the Journal doesn't believe Mr. Hoplamazian either.
That article doesn't appear anywhere on the Journal's website, above the fold, below the fold or even in the fold; I had to do a search to find it and it simply said that the article appeared in the Journal's June 1 print edition.
It's 0930 on June 1st and I have to search for it?
And more tellingly, the Journal turned off comments...
It sure looks like the Journal doesn't believe Mr. Hoplamazian either.
That article doesn't appear anywhere on the Journal's website, above the fold, below the fold or even in the fold; I had to do a search to find it and it simply said that the article appeared in the Journal's June 1 print edition.
It's 0930 on June 1st and I have to search for it?
And more tellingly, the Journal turned off comments - I guess the Journal knows that their readers are smart enough to know a delusion or a lie (take your pick) when they hear it or read it and vocal enough to call him out on it.
I guess the Journal owed Mr. Hoplamazian one but kudos for not burdening their readers or wasting valuable "front page" space with such drivel that can't even charitably be called "specious".
Its become accepted to just all out lie about things now.
The positive receiption is probably like 'well this sucks, but at least they didnt devalue it to needing 1million points and at least its not marriott' where its not really positive at all.
Correction - it has become accepted in the US. To those in other (developed) countries, the fact that US public figures are happy to constantly gaslight and have no interest in whether anything they say is true still looks crazy.
Agreed, frrp. I can't believe how we just accept lies, but every devaluation over the last 10 years has had this doublespeak going on... we really need to vote with our wallets rather than just roll over.
It’s insane to deval the awards without offering at least a tiny opportunity to earn more points via credit card spend, status bonus etc. Instesd, as a 100 night/year globalist I’m no longer even targeted for any decent promos the past 4 years while my spouse and friends get 3x points, free night after staying one night etc.
@Dirk because Hyatt knows you will still continue to stay with them
Stanley C is spot on.
That’s why they call them loyalty programs. They get you hooked and from that point on, the whole thing is running on inertia.
You are a grown up (I assume) - you don’t like how you’re treated, you vote with your wallet
Hi Ben - a request please. Whenever you have these sorts of stories you use photos related to the company discussed. Would you mind please adding a caption to say what is the photo showing? for example I'm really curious which property is shown in the photo that accompanies this story on your front page. Thank you!!
@Long Way Around That is the photo of the Park Hyatt Tokyo New York Grill.
1) right click the picture
2) "open in new tab"
3) read the tab title, which ben always labels in detail showing you exactly where the pic is from
enjoy
I struggle to see how the devaluation of points can be presented as a positive development for members. While the CEO may not be technically untruthful in explaining the rationale behind the changes, the message comes across as dismissive of the real impact on Hyatt's most loyal customers.
The reality is that members are receiving less value for the same points they have worked hard to earn. Rather than attempting to reframe the devaluation...
I struggle to see how the devaluation of points can be presented as a positive development for members. While the CEO may not be technically untruthful in explaining the rationale behind the changes, the message comes across as dismissive of the real impact on Hyatt's most loyal customers.
The reality is that members are receiving less value for the same points they have worked hard to earn. Rather than attempting to reframe the devaluation as a benefit, Hyatt would earn far greater respect by acknowledging the disappointment it has caused, offering a sincere apology, and clearly explaining the business reasons behind the decision.
Transparency, humility, and respect for loyal customers would go much further than trying to persuade members that a reduction in value is somehow in their best interest.
Alpha, he doesn't work for you or me. He works for hotel operators and shareholders. He's saying something that he hopes the hotel owners believe, because they're the ones paying Hyatt franchise fees and revenue cuts... while taking actions to benefit shareholders. We're basically cattle to him.
I can safely say that, after considerable reflection on my recent bookings, I did not have an "overall positive" reaction to the devaluation.
I don't understand the need to be so inauthentic. Why not just say it as it is? Bizarre
I wish you wouldn't put down Pizza Hut! I feel like Pizza Huts generally try to make good pizzas for you and the service is usually friendly.
you need to understand that he is mocking you and gets off on doing it, simple as
As someone in a unique position to rapidly make Hyatt Globalist with a huge base of rewards points by end of summer, I’m not sure what to make of all these changes other than - I would’ve been in a better position last year. I’m still confident Hyatt was the best program to pursue, and have no doubt I’ll have the best redemption value compared to Marriott and the likes. I think the CEO’s comments...
As someone in a unique position to rapidly make Hyatt Globalist with a huge base of rewards points by end of summer, I’m not sure what to make of all these changes other than - I would’ve been in a better position last year. I’m still confident Hyatt was the best program to pursue, and have no doubt I’ll have the best redemption value compared to Marriott and the likes. I think the CEO’s comments are tone deaf and unsurprisingly defensive/evasive. I’m not usually looking to redeem on-peak at top tier properties, so I’m more insulated from the devaluation but I’m sure when it comes time to book that “big trip” I will sigh. Everyone acts like this is the end of the world, but it’s like the Costco hotdog. They’ve been stupid cheap for too long, and truth is if they raised them to even $2 they’d still be the best tasting and cheapest deal around.
76K WOH points per night are not going the cheapest redemptions around.
Pure gaslighting - nothing more, nothing less. If the CEO is ignorant of how this has landed with their most loyal guests, then he’s an idiot, pure and simple.
ignorant is the charitable interpretation
Pure gaslighting - nothing more, nothing less. If the CEO is ignorant of how this has landed with their most loyal guests, then he’s an idiot, pure and simple.
This CEO Mark Hoplamazian, World Of Hyatt.
As you said he's a idiot.
The CEO and his team members don't have a guts to reply one simple email reply regarding the fraud of Hyatt Regency Mumbai.
If WSJ is ready to take this matter i will give you all the details how Hyatt International cheat in the name of MOU Memorandum Of Understanding Around the World.
If we go by saying Delta is the most premium of the U.S. airline then Hyatt is the most premium of the U.S. hotel chain. So, is Hyatt going to pull a Delta and devalue its points to the level that Delta already does? Wonder would Hyatt learn from the airlines and raise its Globalist requirements to unseen level and hoping its members would still choose them over the competitors because of a loyal following....
If we go by saying Delta is the most premium of the U.S. airline then Hyatt is the most premium of the U.S. hotel chain. So, is Hyatt going to pull a Delta and devalue its points to the level that Delta already does? Wonder would Hyatt learn from the airlines and raise its Globalist requirements to unseen level and hoping its members would still choose them over the competitors because of a loyal following.
And still do not understand why Ben would try to find a way to defend Hyatt but not the other companies when they do something dumb like this. He sure does put in a more than necessary amount of time defending Hyatt but when other hotels and airlines do something similar to this he gives them a more scathing review. Even when Starbucks changed its program to make it worse overall he was more critical of it than he is with this Hyatt interview review. Yet, we all must understand and know that Ben just loves Hyatt too much as do all the other bloggers out there so respect for Ben and them for sticking with their love for Hyatt.
WHAT A JOKER
The Chicks wrote a song about this. It’s called Gaslighter.
So how many of you are happy with all these "amazing" changes ?
Hyatt points are still the most valuable in the industry. Even after this devaluation, I can find plenty of stays that get 2-2.5 cents per point. How does that compare to Hilton, Marriott or IHG?
Accor have been at 2 eurocents per point since the days of Le Club Accor!
I adore getting royally screwed by the recent bloodbath, particularly since Hyatt has made extremely clear that next year will be much worse.
I really wish the guy really had said that he is happy that Hyatt effed over their most loyal customers and that the company just wants more money and doesn’t care how they get it. At least that would have the virtue of honesty.
It wasn't that long along that people said Hyatt wouldn't do this or Hyatt wouldn't do that. They stuck to their mantra. Others and I have noted the contempt with which the Hyatt CEO spoke about WOH members to hospitality executives at a conference in Germany a few months ago. As Sammy "the Bull" Gravano said, "There are some things you can't un-say." And, the Hyatt CEO said them. It was absolutely clear what was to come. And, baby, it's just starting.
The program doesn’t have an award chart. With bands that wide, I’m sure you could chart an equivalent award chart for Marriott or Hilton too.
What a maroon.
Egads, stop defending this hypocrite. He’s either lying or so insanely clueless he should be immediately fired. Not a single positive thing came from this brutal devaluation. None. Zero. Hyatt needs to be more generous because their general footprint is minuscule.
You spent half your piece defending him. Please call him out for what he’s doing here. Lying.
Is Hyatt one of a list of "advertising partners?"
You can now get cheaper low-season redemptions in the following categories of property: 1, 2, 3, 5, 6, B and C. That sure sounds like a positive to me.
Hyatt has long been the most generous loyalty program because their properties have always been a bit more expensive than the other chain hotels. People would go out of their way to stay at Hyatts, with their limited footprint, because of the loyalty program. Let's see how sustainable that premium is after this recalibration.
You're funny.
I can't believe there ate people are stupid enough to go out of their way to stay at Hyatts.
Especially when IHG and Marriott are few miles away and the nearest Hyatt is over 500 miles away.
No, he’s exactly right. The high value of the program (obviously until now) got me to spend money and nights to stay at their hotels as an absolute first choice. Were there fewer hotels in fewer locations than Hilton? Of course. But the loyalty program did exactly what it was supposed to do - induce members to make illogical decisions by offering them things they wanted.
Yes - and, this is the beginning of the end of loyal members making those kinds of illogical decisions that benefit Hyatt. I’m already booking elsewhere, and status matching to other programs. The recent GHA status match was particularly useful for several upcoming trips.