Hyatt Gold Passport 16 nights 44K analysis

Hyatt Gold Passport promotion registration is open for the 16 nights earn 44,000 points promotion running February 1 to April 30, 2012.

Registration is required by March 31.

Hyatt nights completed during the promotion period and prior to registration count as long as member registers by March 31.

Don’t delay. Sign up now!

Interesting to me is the main promotion page makes no mention of the 25% bonus points for being a Hyatt Visa card member that was referenced in last week’s informal announcement. The 25% bonus is being communicated privately to Hyatt Visa card members by email. This proved to be a contentious bonus based on FlyerTalk comments from international Hyatt Gold Passport members. The problem is the Hyatt Visa card is only available to residents of the U.S. 50 states and D.C.

Full-service Hyatt hotels outside the U.S. are typically far more expensive than Hyatt Place and HYATT House properties meaning this bonus is likely far costlier to earn for travelers staying at Hyatt properties outside the U.S.

Promotion Offer

• after 4 nights = 4,000 bonus points.
• after 8 nights = 8,000 more bonus points = 12,000 points total.
• after 12 nights = 12,000 more bonus points = 24,000 points total.
• after 16 nights = 20,000 more bonus points = 44,000 points total.

This promotion offers the potential of earning 44,000 bonus points after 16 nights or 55,000 bonus points for Hyatt Visa card members (25% more bonus points).

 

Loyalty Traveler Promotion Analysis

In my original post last week I called this Hyatt 44,000 bonus points promotion offer a 3-star value meaning I think it is good value, but not a high value or great offer for most members who do not regularly travel that frequently with Hyatt Hotels. 16 nights in 90 days is a high hotel stay pattern for the average traveler.

This is a better value offer if you are elite with another program and decide to go for a Hyatt Diamond Challenge requiring 12 nights in 60 days. The Diamond Challenge will match you to Diamond status immediately and if you complete the 12 nights in 60 days your status will continue through February 2013. Read last week’s Loyalty Traveler post to learn more about combining this promotion with a Hyatt Gold passport Diamond Challenge.

 

Diamonds may want to go for the points

I do not recommend frequent guests of any hotel chain stay 16 nights in a cheap Hyatt hotel just to earn the 44,000 points bonus. Instead the numbers show me a Diamond member staying 8 or more nights anyway during the February 1-April 30 promotion period should consider buying extra Hyatt hotel nights if you have proximity to a cheap Hyatt and you want to earn cheap points and even a little padding for your elite membership requalification in 2012.

The analysis I provide here is a more detailed look at the numbers for actual hotel stays showing 16 nights is possible at the Hyatt Place Fremont for $1,250 all-in where weekend rates are $64 to $71 per night. There are some other places in the USA with hotels under $75 per night and even full-service Hyatt regency hotels at under $85 per night.

Hyatt Gold Passport is a program with two distinct property tiers. Hyatt Place and HYATT House (extended-stay) are limited service hotels. The main benefits of Hyatt Diamond are complimentary full restaurant breakfast and room upgrade potential (without using upgrade certificate) and 2,500 bonus points for Regency Club closure which happens on weekends at many business hotel locations. These are not benefits that typically apply to Hyatt Place and Hyatt House properties.

While Hyatt Place and HYATT House are likely to be the lowest rate hotels, these are not the kind of hotels that will get you thrilled about being a Hyatt Gold Passport Diamond member. Elite status does not offer much at these two Hyatt brands.

Diamond Challenge and 16 Nights Bonus by the numbers

– 8 Friday-Saturday stays

My regional go to cheap Hyatt stay is Hyatt Place Fremont, California.

Hotel rates over the next 8 weekends in this Silicon Valley hotel nestled up against Interstate 880 has weekend rates from $64 to $71. The AAA rate is $71 and may be canceled up to 4pm day of arrival.

Assume Diamond elite membership already or starting a Diamond Challenge.

Weekend stay = $71 Friday and $71 Saturday. 10% tax rate.

Two night weekend = $142 + $14.20 = $156.20.

Points earned per weekend 2-night weekend stay at Hyatt Place Fremont:

• 710 base points = $142 x 5 base points/$1.
• 213 bonus points = Diamond elite 30% bonus points.
• 500 bonus points = Diamond welcome gift per Hyatt Place stay.
• Total Points = 1,423 per $156.20 2-night weekend stay.

Project this data with a hotel rate of $71/night over 16 nights with the 4 night bonuses of the Hyatt Gold passport promotion.

Hyatt Promotion Bonus

First Round of 4 nights

4 nights  = $312.40 total hotel rate.

• 4,000 points = 4 nights Promotion bonus.
• 2,846 points = 4 nights at Hyatt Place Fremont.
• 6,846 Gold Passport total points after 4 nights.

Second Round of 4 nights

8 nights = $624.80 total hotel rate.

• 8,000 points = 8 nights Promotion bonus.
• 2,846 points = 4 nights at Hyatt Place Fremont.
• 17,692 Gold Passport total points = 10,846 (Round 2) + 6,846 (Round 1)

 

Third Round of 4 nights

12 nights = $937.20 total hotel rate.

• 12,000 points = 12 nights Promotion bonus.
• 2,846 points = 4 nights at Hyatt Place Fremont.
• 32,538 Gold Passport total points = 14,846 (Round 3) +17,692 (rounds 1,2)

Fourth Round of 4 nights

16 nights = $1,249.60 total hotel rate.

• 20,000 points = 16 nights Promotion bonus.
• 2,846 points = 4 nights at Hyatt Place Fremont.
• 55,384 Gold Passport total points = 22,846 (Round 4) + 32,538 (Round 1,2,3)

Spending $1,250 for 55,384 points is equivalent to buying points from Gold Passport for about $22.57 per 1,000 points. Hyatt Gold Passport normally charges $24 per 1,000 points.

My primary point being this is a cheap way to pick up Gold Passport points and earn plenty of nights for 2012 Diamond renewal or meet a Diamond challenge. One-night stays is better if you plan to qualify on hotel stays, but in the San Francisco Bay Area the hotel rates are only low on Friday and Saturday nights.

Hyatt Place Fremont is just one example of a Hyatt hotel where cheap rates make this a good value promotion.

Strategy for the Gold Passport member with only 8 nights planned during the promotion.

Using the outline above the Diamond member who has 8 nights planned can use a similar strategy to pick up the bigger bonus points earned from 12 and 16 nights during the promotion period.

Find a cheap Hyatt hotel where you can buy nights for less than $75 per night. My example with Hyatt Place Fremont is $312 for 4 nights.

A Diamond member buying 8 additional nights for $625 (and up to 8 hotel stays for elite credit)  earns an additional 37,692 points. This brings the cost of points down to $16.59 per 1,000 points.

This is a strategy you may want to consider if you have Hyatt stays planned, but you will not be staying 16 nights. This offer gets better if you need to buy fewer than 8 nights to reach the maximum bonus points.

If you just need 5 additional nights to reach 16 nights then the cost of points drops down to really low levels.

$400 for 5 additional nights earns about 36,000 points and the rate of earning points drops to $11.11 per 1,000 points. Buying points at a rate that low is a good investment in Gold Passport points.

Conclusion

This promotion is a good opportunity for trying the Hyatt Diamond Challenge. This is also a promotion value worth considering additional low-cost nights at Hyatt hotels if you are Hyatt Diamond and you need only 3 to 6 more nights to reach 16 nights during the Feb 1-April 30 promotion period. The bonus points earned for reaching 16 nights by April 30 can be considered a good discount rate for buying points.