Nov162018

Analysis Hyatt Points+Cash category 5 reward value

Hyatt changed Points+Cash reward nights on Nov 1, 2018 from a fixed copay to a variable copay amount set at 50% of the Standard Flexible Rate. In most cases this increases the cost of Points+Cash reward nights at low level hotels as seen in my analysis of Category 1 and 2 hotels and category 3 and 4 hotels, where Standard Reward Nights generally provide the better redemption value for Hyatt points.

This article looks at Points+Cash reward nights for Hyatt category 5 hotels.

World of Hyatt Standard Reward and Points+Cash Reward chart effective November 1, 2018.

Former Points + Cash table eliminated November 1, 2018.

World of Hyatt Category 5 Hotels

Hyatt Centric Chicago Magnificent Mile provides an example where the new Points+Cash reward chart provides a much lower copay amount for this category 5 hotel on a December date when rates are relatively low and the Standard rate is $145 per night.

World of Hyatt Category 5 hotel with low advance purchases and standard rates.

Hyatt Points + Cash copay is only $73 when it would have been $125 before Nov 1.

Hyatt Centric Chicago Magnificent Mile is a category 5 hotel at 20,000 points per night for a standard reward. This hotel has a very low midweek rate in early December 2018 when $148 all-in buys a King Bed High Floor room.

Contrast $148 to pay for the room and earn Hyatt points to 20,000 points per night for a Standard Reward night. Hyatt points redemption value is a very poor $7.40 per 1,000 points.

This is a bad deal as someone who wants to get about $20 or more per 1,000 Hyatt points I redeem for a hotel.

Hyatt Points+Cash is 10,000 points + $85.12 for a King Room with ADA Tub. I consider that a downgrade room to the High Floor King Room, although it might be that the ADA King is on a high floor too. Not enough information to determine.

Hyatt Points+Cash is even worse redemption value with 10,000 points only saving $63 for a redemption value of $6.30 per 1,000 points.

Bottom Line: For high category hotels where a low room rate results in a lower Points+Cash rate than previously offered in the old fixed copay award chart, the points redemption value is also low and likely too low to offer a good redemption value for your Hyatt points.

Hyatt Regency Chicago Magnificent Mile would have cost 10,000 points + $125 or $146.76 after tax under the old Points+Cash reward chart and is 10,000 points + $85.12 under the new 50% copay Points+Cash reward chart. The old chart was obviously a bad choice considering you would have paid 10,000 points to save $1.00 on the advance purchase room rate. The new chart is still a poor use of points to spend 10,000 points and save less than $7 per 1,000 points redeemed.

Hyatt Category 5 Park Hyatt Melbourne, Australia

Rates shown in images are US Dollars.

Hyatt Standard Rate King Bed = $307.97 USD.

Hyatt Points + Cash reward = 10,000 points + $153.99 USD.

In this example, the points redemption value is the same for both Points+Cash or Standard Reward at $15.40 per 1,000 points. That is a reasonable redemption value, but still lower than I would want for my Hyatt points.

Is there a Sweet Spot for Hyatt Points + Cash?

There is a range of room rates where the redemption value of points used for a Points+ Cash reward will hit $20 per 1,000 points.

A Standard room rate around $400 per night would mean a Points + Cash $200 copay and redeem 10,000 points to save about $200. This would be a more expensive room than last month when the copay would have been $125, but that is now irrelevant in the new World of Hyatt order.

Points + Cash award availability is the issue that may prevent this kind of redemption value. Two category 5 hotels I checked with room rates over $400 USD per night were Hyatt Regency Sydney, Australia and Park Hyatt Mallorca, Spain. Neither of these hotels offered Points+Cash reward nights on dates I checked when rates priced over $400 USD.

My general conclusion after examining hotels in Hyatt Categories 1-5 is Hyatt’s new Points+Cash Reward program is effectively a neutered reward option for good points value. Just about every hotel situation I have examined shows Hyatt Standard Rewards offer better redemption value than Points+Cash reward stays.

 

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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