Nov122018

Analysis: Hyatt Points + Cash value after Nov 1 change to 50% standard rate

World of Hyatt changed their Points + Cash reward rates on November 1, 2018 from a fixed copay linked to the hotel reward category 1-7 to a copay amount equivalent to 50% of standard flexible rate at time of booking for the stay dates. In general, this change devalues Points + Cash reward nights with higher cash amounts required when booking most Hyatt Points + Cash reward nights.

And in cases where the Points + Cash copay change actually results in a lower cash amount than the former fixed amount for the hotel category, the redemption value is generally so low as to be a poor use of points. For these hotels the better option is pay the posted room rate and save Hyatt points for better redemption value opportunities.

World of Hyatt Points + Cash Reward Night analysis of Nov 1, 2018 change

https://world.hyatt.com/content/gp/en/rewards/free-nights-upgrades.html

In this series of posts I show examples of hotels at each reward category 1-7 and the impact of the new Points + Cash reward cost compared to the former fixed copay amount pegged to the hotel category.

Former Points + Cash table eliminated November 1, 2018.

World of Hyatt Category 1

Hyatt Place Tempe/Phoenix Airport

The former Points + Cash rate would have been 2,500 points + $50 per reward night.

The new Points + Cash rate is 2,500 points + $80 (50% of $159 Standard Rate).

Hotel tax added to the $80 copay reduces the redemption value even more.

Points + Cash reward rate = 2,500 points + $90.85.

Here are a couple of ways to view the value of points redeemed with this Points + Cash stay.

  • Hyatt member flexible rate $143.10. Total rate after tax = $163.52.
  • Hyatt member advance purchase rate $127.20. Total rate after tax = $145.35.

The choice is between paying $145.35 nonrefundable rate or $163.52 flexible rate or Points + Cash 2,500 points + $90.85 or 5,000 points category 1 standard reward rate.

World of Hyatt Points Redemption Values for Hyatt Place Tempe/Phoenix Airport:

Hyatt Points + Cash reward night saves 2,500 points at a cost of $90.85.

Redemption Value = $21.80 – $29.07 per 1,000 points compared to advance purchase rate.

  • Advance Purchase $145.35 – $90.85 = $54.50/2,500 points = $21.80 per 1,000 points.
  • Advance Purchase $145.35/5,000 points = $29.07 per 1,000 points.
  • Category 1 standard reward for 5,000 points offers higher redemption value than Points+Cash.

Redemption Value = $29.07-$32.70 per 1,000 points compared to member standard rate.

  • Standard Rate $163.52 – $90.85 = $72.67/2,500 points = $29.07 per 1,000 points.
  • Standard Rate $163.52 /5,000 points = $32.70 per 1,000 points.
  • Category 1 standard reward for 5,000 points offers better redemption value than Points+Cash.

The option to buy points for $24 per 1,000 points means it costs less to buy 2,500 points for $60 and redeem a standard reward compared to booking a Points + Cash reward.

Points + Cash is a poor use of points for Hyatt Place Tempe/Phoenix Airport at these room rates since Hyatt points can be purchased for $18 per 1,000 points during periodic promotional sales through the year. You are better off paying 5,000 points for the $159 room rate for a redemption value of $32 per 1,000 points. Buy more points at $18 to $24 per 1,000 points if you need Hyatt points.

 

Why I prefer to evaluate redemption value based on member flexible rate instead of the advance purchase rate.

  1. Reward stays have same cancellation policy as standard flexible rate.
  2. Advance purchase rates are not a rate I generally book unless I think there is virtually no chance I will miss the hotel stay. I use advance purchase rate comparison to points rate when I am willing to book an advance purchase rate for my stay.

 

World of Hyatt Category 2 – Hyatt Regency Belgrade, Serbia

December 27, 2018

Points Rates

  • 8,000 points Standard Reward – King Room
  • 4,000 points + 60 EUR Points + Cash Reward – King Room (69 EUR after tax = $77.76 USD)
  • 3,000 points + 105 EUR Club Upgrade with Points – King Room with Lounge Access (118.50 EUR after tax = $133.54 USD).
  • 12,000 points Club Access Standard Reward – King Room with Lounge Access
  • (former Hyatt Points + Cash rate 4,000 points + $55)

Paid Rates

  • 117.68 EUR Member Advance Purchase – King Room  ($132.61 USD)
  • 135.00 EUR Standard Rate – King Room ($152.13 USD)
  • 150.00 EUR Member Advance Purchase – King Room with Lounge Access ($169.04 USD)
  • 165.00 EUR Standard Rate – King Room with Lounge Access ($185.94)

 

Hyatt Points Redemption Values for Hyatt Regency Belgrade

Standard Reward – King Room

  • 8,000 points for $133 room advance purchase rate = $16.58 per 1,000 points.
  • 8,000 points for $152 member flexible rate = $19.02 per 1,000 points.

Points + Cash Reward – King Room

  • 4,000 points + 69 EUR = $77.76 USD for $133 advance purchase rate is 4,000 points for $55 saved = $13.71 per 1,000 points. 
  • 4,000 points + 69 EUR = $77.76 USD for $152 member flexible rate is 4,000 points for $74 saved = $18.50 per 1,000 points. 

Points + Cash Reward – King Room with Lounge Access

  • 3,000 points + 118.50 EUR after tax = $133.54 for $169.04 advance purchase rate. 3,000 points saves $35.50 = $11.83 per 1,000 points redemption value.
  • 12,000 points – King Room with Lounge Access for $169.04 advance purchase rate = $14.09 per 1,000 points redemption value.
  • 3,000 points + 118.50 EUR after tax = $133.54 for $185.94 member flexible rate. 3,000 points saves $52.40 = $17.47 per 1,000 points redemption value.
  • 12,000 points – King Room with Lounge Access for $185.94 member flexible rate. = $15.50 per 1,000 points redemption value.

The best use of points is paying all points for the standard reward rate, except in this example the Points + Cash reward rate is actually a better redemption value when booking a room with Lounge access, when compared to the member flexible rate.

Are they any good deals with Hyatt Points + Cash?

Since first hearing about the Hyatt Points + Cash reward changes while sitting in a Hampton Inn in Romania a couple weeks ago, I thought Hyatt made a weak reward value offer even worse.

As I played with the numbers in my head I could not come up with a hotel where I thought the changes would be beneficial for Hyatt members.

In this post I show that Hyatt Place Tempe/Phoenix Airport is still a good redemption value under the new reward chart. The value was better under the old Points + Cash chart.

However, a hotel like Category 2 Hyatt Regency Belgrade at the room rates shown here was a poor redemption value under the old system at 4,000 points + $55 copay + 15% tax per night and is even worse redemption value now at 60 EUR copay for 50% standard rate and 69 EUR after adding 15% tax to copay rate.

In additional articles I will continue this analysis examining Hyatt Category 3-7 hotel rewards for Points + Cash redemption value after the November 1, 2018 changes.

 

About Ric Garrido

Ric Garrido of Monterey, California started Loyalty Traveler in 2006 for traveler education on hotel and air travel, primarily using frequent flyer and frequent guest loyalty programs for bargain travel. Loyalty Traveler joined BoardingArea.com in 2008.

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