Hyatt Gold Passport has officially announced through FlyerTalk it will no longer offer status matches to Gold Passport Platinum and Diamond elite membership based on elite membership in other hotel loyalty programs.  In select cases an individual may receive an elite status trial offer at the discretion of a property’s sales department.

The folks at Hyatt Gold Passport have apparently decided that requiring loyalty members to earn Diamond status with 25 stays or 50 nights in a calendar year is a better business model after more than a full year of instant elite and fast-track offers in 2009-2010 (May 1- Aug 31, 2009), (Stays Count Double Oct 2009 – Jan 2010), (Feb-May 2010) even to Hyatt Gold Passport Diamond, and retention of Diamond elite for just 15 nights within 180 days of membership.

Perhaps the recent Frequent Traveler Awards Loyalty Leadership recognition for its Diamond-level, loyalty program industry-exclusive benefit of four confirmed suite upgrades annually gave a little more publicity to the high value of Hyatt Gold Passport Diamond elite membership benefits. Hyatt Gold Passport press release.

Converting your Starwood Preferred Guest $1,200 in hotel spend for 13 nights at Four Points hotels to Hyatt Gold Passport Diamond membership with four complimentary confirmed suite upgrades was perhaps a bit too generous.

The Hilton HHonors Diamond member who could upgrade her next business trip to London with an Andaz Hotel suite for 4 days and then a suite at the Park Hyatt Tokyo for 7 nights on her first two Hyatt stays was perhaps leaving too much hotel spend unspent at Hyatt.

This change is not surprising for several reasons.

First is the comparable airline practice for status matching elites rarely applies to top tier matches. American Airlines Executive Platinum and United Mileage Plus 1K members receive complimentary international upgrade certificates annually. Airlines know these upgrade certificates are high value and are sometimes sold for cash. Airlines will status match you part way, but not all the way to top elite where you receive complimentary international upgrades to Business Class.

Secondly, Hyatt Gold Passport’s major competitor in the U.S. is likely Starwood Preferred Guest with a comparably major loyalty program and a bit more than twice as many hotel properties (around 1,050). Hyatt Gold Passport covers many major cities around the globe where SPG also has a presence.  Hyatt Gold Passport has blown away Starwood Preferred Guest over the past 18 months with generous benefits and high value promotions.

Personally, I know that the Hyatt Gold Passport Diamond benefit of complimentary breakfast has influenced my hotel choice in favor of a Hyatt rather than Starwood Hotel on a number of occasions since April 2009 when Gold Passport revamped its Diamond elite benefits.

I wonder how many frequent guests actually abandoned Starwood Hotels for Hyatt Hotels due to the generous Hyatt benefits?

The primary complaint about Hyatt Hotels is the small number of properties at fewer than 450 hotels worldwide. Business travelers want a major hotel loyalty program with widespread geographical properties. InterContinental Hotels Group, Hilton and Marriott offer geographic flexibility. IHG has over 4,500 hotels, Hilton has over 3,600 and Marriott is close behind at around 3,400 hotels. Business travelers need a hotel loyalty program that will cover hotels in many places. 

The Hyatt Credit Card Effect

Another good reason to stop status matches is the current Hyatt credit card offer for two free nights with complimentary suite upgrade for Hyatt Gold Passport Diamond members who become Hyatt Gold Passport Visa credit card members.

The Hyatt Crystal Ball

Hotels are predicting good increases in profits for 2011. Hotel stocks are on the rise. Analysts are currently saying BUY. Hyatt has big plans for New York City with several new properties scheduled to open in 2011 and 2012.

It will be interesting to see if Hyatt acquires another hotel brand before too long to bring its portfolio size in line with Starwood Hotels. High-end properties are in the works in many places like Amsterdam, Bermuda, and New York. Perhaps Hyatt’s strategy will be to remain focused on high-end hotels.

I do not lament the passing of Hyatt Gold Passport elite matches. Hyatt Gold Passport was overly generous since April 2009 in fast-tracking anyone who asked to join Gold Passport’s elite ranks.

Hyatt Gold Passport Platinum elite requires just 5 stays in a calendar year. Another unique feature of Hyatt Gold Passport are Platinum Extras certificates which provide additional benefit bonuses every 3^rd hotel stay as you stay your way to Hyatt Gold Passport Diamond elite.  Other hotel loyalty programs do not offer little extras to reward your mid-tier loyalty as you earn your way to the top.

Hyatt Gold Passport has ran Stays Count Double promotions for part of the year for the past several years. Keep your eyes open for a 2011 offer.

Hyatt Gold Passport Diamond elite benefits link.

(Thanks to Lucky for posting about this change. I have looked over FlyerTalk many times this past week and the Hyatt thread title, “Hyatt Tier Matching Information“ never caught my attention as having this significant program information.)

Presidential Suite, Hyatt Fisherman's Wharf, San Francisco

This is a reminder to register for the Hyatt Gold Passport “Enjoy Elite Membership” instant Platinum elite offer and fast-track to Diamond offer by August 31. Promotion Link.

The promotion was discussed in detail in this June 23 Loyalty Traveler post.

New Gold Passport members receive instant Platinum elite which normally requires 5 stays in a calendar year or 15 nights. Stay just 5 nights in the 120 days after registering for the promotion and your Platinum elite status will be extended through February 2011.

One of the benefits of Hyatt Platinum elite is Platinum Extra certificates after every 3^rd stay with offers such as bonus points and free Regency Club upgrades. Platinum members are also eligible for room upgrades within the room category booked.

Gold Passport Platinum members receive a 15% bonus on 5 base points per US$1 in hotel spending.

$100 room rate (before tax) earns 500 base points and 75 platinum elite points. Free room nights using points start at 5,000 points for Gold Passport Category 1 hotels. Category 2 = 8,000 points; Category 3 = 12,000 points; Category 4 = 15,000 points, and Category 5 = 18,000 points for a free night.

Diamond elite membership can be earned and maintained through February 2011 with 15 nights in 120 days after promotion registration. Diamond benefits include complimentary guaranteed upgrades, bonus points, and complimentary Regency Club access.

Diamond elite members earn a 30% bonus on base points and have the option to receive 1,000 points as a diamond amenity for each hotel stay at a full-service Hyatt or 500 points at Hyatt Place and Summerfield Suites. Other amenity choices may be a free movie, mini-bar credit or other hotel specific offer.  I received a delicious appetizer tray and a bottle of wine at the Hyatt Regency Denver as a Diamond amenity.

Hyatt Regency Denver Convention Center

There is no harm in asking for instant Diamond elite membership. Reports on FlyerTalk indicate some new members have been granted instant Diamond elite membership with the benefit of four confirmed e-upgrade certificates.

For leisure travelers there is an advantage of waiting until late August for promotion registration if your travel in late December will place you in a position to complete more Hyatt stays. Many major city hotels have some of their lowest rates of the year during the latter half of December when business and leisure travel slows.

I find many of the lowest rates of the year in San Francisco during the Thanksgiving and Christmas holiday weeks. Resorts tend to have higher rates at these times.

This is one of the most generous hotel loyalty program offers in years. Take advantage of Hyatt Gold Passport’s generosity if this promotion fits with your travel plans.

Loyalty Traveler Promotion Rank = 5 Keys (One of the best hotel loyalty promotions of 2009)

Starwood Points Earning Power in Real Travel

One of the primary difficulties in hotel loyalty program-to-program comparisons is the inability to accurately predict the earning power of real hotel travel due to variability of hotel program special offer bonuses for the frequent guest.

Most comparisons simply calculate points earned based on a fixed dollar amount of hotel spending, and adding applicable elite bonuses for the projected number of hotel nights and stays.  (See InsideFlyer’s hotel loyalty program comparison from June 2008).

The problem with this method is that it does not reflect the real earning power of points for real hotel stay travel.  Starwood Preferred Guest (SPG) generally comes out at or near the bottom in a simple analysis of base point earnings for hotel stays when comparing loyalty programs. 

I have been SPG Platinum (qualification is 25 stays or 50 nights in a calendar year) for six years.  During that time frame, I estimate more than 80% of all my hotel points earned from hotel stays were bonus points on top of points earned from base spending.  That means if I earned 9,000 points from hotel stays through base spending ($3,000 in eligible hotel spending at 3 points/$1 for Gold or Platinum elite members), I estimate that I earned an additional 35,000 points or so from SPG bonuses and platinum-elite amenity gifts (500 points per stay, except 250 points/stay at Four Points brand hotels). 

Base Spending is Not Sufficient in an Analysis for Hotel Loyalty Program Comparisons

Most hotel program comparisons only count Starpoints earning power at 2 or 3 points per $1 of hotel spending.  (I even did this in my last post when I compared Wyndham Rewards to SPG for hotel-points-to-airline-miles transfers which spurred my incentive to write this piece today.)  My actual experience over the past several years shows my Starpoint earnings to be more in the range of 10 to 15 points per $1.00 in hotel spending.  (American Express Starwood credit card is not being considered in this analysis).

For example, Starwood had a promotion at the Westin Market Street San Francisco for 5,000 bonus points on a 2-night weekend stay this summer.  Rates were $179 for several weekends in August.  (This promotion expired August 31, 2008).  Base spending in this example is quite small as a proportion of total Starpoints earned for a 2-night stay.

SPG non-elites earn 2 points/$1.  Two nights at $179/night = $358 in eligible spending. 

$358 x 2 = 716 Starpoints earned based on hotel spending. 

5,000 points earned through SPG bonus. 

Of the 5,716 points earned for the 2-night stay, only 13% of the Starpoints earned were from the $358 in hotel base spending.  This example illustrates the problem with making hotel loyalty program comparisons solely using base spending as the points earning criteria for the guest.

Starwood Platinum-elite guest using example above for Westin San Francisco Market Street would potentially earn $358 x 3 = 1,074 points for base spending; 500 points platinum amenity gift; and 5,000 points for weekend stay bonus = 6,574 points and still only 16% of Starpoints earned are from base spending.

Priority Club Rewards is usually calculated at 10 points/$1.00 in hotel base spending.  FlyerTalk members routinely state combined promotional bonuses for hotel stay spending push actual earning ability as high as 30 points/$1.00 and I have seen claims of individuals earning nearly 50 points/$1.  This is far above the 15 points/$1 usually used as the earning power of a Priority Club Platinum member (50 nights/year).

Real Travel Comparison of Points Earning in Starwood Preferred Guest

Current promotions:

1.      FlyerTalk 500 points per night for hotel stays in September (combinable with other promotions)

2.      North America 1,000 points per stay during weeknights (Sunday-Thursday); Four Points stays earn 500 bonus points.

San Rafael Four Points 3-night stay from Tuesday September 9 to Friday September 12

$109/night

Non-elite member Base Earning = $109 x 3 nights x 2 Starpoints/$1 = 654 Starpoints for stay.

Plus Bonus #1: 500 Starpoints/night FlyerTalk bonus = 1,500 Starpoints

Plus Bonus #2: 500 Starpoints for weeknight stay at a Four Points = 500 Starpoints

2,654 Starpoints earned for this stay and 75% of Starpoints earned are from bonuses and not points from hotel spending.  A platinum elite would receive an additional 250 points as a platinum amenity gift and 327 additional elite bonus points for 3,231 Starpoints.  Only 30% of the Starpoints earned would be from spending based on the hotel rate, yet comparisons of hotel loyalty programs generally only consider hotel spending.

Hyatt Gold Passport standard points earning is 5 points/$1 in base hotel spending.  Hyatt also has numerous hotel specific bonuses which can greatly increase member earning power.  See my post on Hyatt “G” Bonuses.  And as a Hyatt Diamond member, a guest can receive a 1,000 points diamond amenity bonus at many Hyatt hotels. Hyatt Platinum elites earn a Platinum Extras certificate after every three stays for additional bonus points opportunities and other benefits.  (The Hyatt website is down as I am writing this so I can’t show a hotel stay example as I had planned.)

In the final analysis of hotel loyalty program comparisons, the points earning is determined by the member’s diligence in looking for promotions, registering for promotions, and booking through the specific links to get the best applicable offers for each hotel stay. 

Loyalty Traveler tip:  After an initial search of hotel rates for your destination, check the actual hotel property’s webpage and look for the special offers link to see if there are better rates or bonus point offers.  PointMaven.com also performs this special offer search task, however, I find it easier to just check the websites of specific hotel properties most of the time.

Traveling with a hotel loyalty plan can mean the difference between earning a free hotel stay after a few hundred dollars in actual hotel spending vs. earning a free hotel stay after thousands of dollars in spending. 

Loyalty Traveler is geared to the frequent guest who wants to know how to get more value from your hotel spending and will take the time to find a better deal.

Park Hyatt, Carmel Highlands Inn
Hyatt Gold Passport Category 5 hotel
18,000 points/free night

My Hyatt Gold Passport account reads Diamond membership as of today.

Getting my Gold Passport stamped required a little prodding from this loyalty traveler. Six hotel stays at full-service Hyatt Regency and Grand Hyatt hotels posted to my account within two to four days after checking out of the hotel. Nearly all seven hotel stays at Hyatt Place and Summerfield Suites required a full two weeks to post. A week ago, April 12, I sent 8 email credit requests for missing stays and bonus points through the link on the Hyatt Gold Passport member account page.

In fairness, Hyatt Gold Passport does have a statement on the member’s account detail webpage for “Past Stay or Bonus not credited? Please allow 2 weeks after check-out to request missing credit.”

When you file a request for missing stay credit, there is this statement
“Your account will be updated with the appropriate eligible credit within 2 weeks. Please allow up to 4 weeks to receive credit for stays outside the U.S. and Canada, at Hyatt Place, Hyatt Summerfield Suites, and our Hotel partners.”

My Gold Passport stay counter progressed steadily and rapidly during March. The stay counter hit 10 on March 25, 16 stays by March 30, and then was stuck on 18 from April 4 for a while, and then notched up to 20 when the March 28th stay posted. Technically, all my stays posted within two weeks except for Summerfield Suites Belmont on March 29 and the Hyatt Place Fremont on March 30.

I made a phone call to follow up on the emails of the week before. The rush for diamond membership is the closeness of my next Hyatt stay this week.

Then, the Hyatt Gold Passport phone representative spoke the dreaded words, “stay is ineligible for points”. He told me the Hyatt Place Fremont stay of March 30 was notated as ineligible for points. This is the stay from the Best Rate Guarantee night I wrote about in this post.

I duly pointed out the terms of the Best Rate Guarantee state “The number of Gold Passport points awarded to you if you are a Gold Passport member will be based on the room rate actually paid by you at checkout.”

The point which was uncertain to me is whether a Best Rate Guarantee room night actually counts as an eligible stay for credit. Technically, I didn’t see any statement in the Best Rate Guarantee terms regarding Stay or Night credit on a Best rate guarantee discounted rate. Hyatt Gold Passport awards points for Hawthorne Suites and AmeriSuites stays, however, stays at these Hyatt partner hotels are not eligible for elite qualification membership. I realized the Hyatt “Best Rate Guarantee” hotel stay may not necessarily be an “eligible” stay for Hyatt Gold Passport “Stays Count Double” promotion.

But, Gold Passport did count the “Best Rates Guarantee” $71 Hyatt Place stay as an eligible stay and the stay was doubled for the “Stays Count Double” promo.
And I am now Hyatt Gold Passport Diamond.

There is still a matter of a missing 1,000 points from the Hyatt Regency San Francisco Airport Gold Passport Bonus Offer reservation.

And it looks like the “Stays Count Double” did not trigger the additional Platinum Extras awards for every 3rd stay. The counter for Platinum Extras awards is confusing because it starts after reaching Platinum membership level with 5 stays, which required 3 stays with “Stays Count Double”. My 13 actual stays only triggered 3 Platinum Extras Awards for my 6th and 9th stays (Platinum Extras Award for 3rd and 6th stay was good for 1,000 points each), and I received the third Platinum Extra award yesterday for my 12th stay (Platinum Extras Award for 9th stay good for 1,500 points). Although my Gold Passport Stay Counter reads 25, I have not received the higher value Platinum Extras awards at Stays 15, 18, (2,000 points) and 21 (Regency Club upgrade).

Friday, March 14, 2008 I checked into the Hyatt Place Fremont for my first Hyatt hotel stay of 2008. Five weeks later (and $1,500), as of Friday, April 18, 2008 my Diamond membership shows on my online account webpage. This coming week will be my first Hyatt stay as a Diamond member. Phoenix, here I come.

On a side note: Hyatt’s website is generally really slow compared to the other major hotel brands I spend time viewing. I need cool rims on my browser so I can at least be entertained watching the circles spin while waiting for Hyatt to load another webpage.