An analysis of how Hyatt elites will now pay more for rooms

Last year, I started off as a “lowly” Hyatt Platinum, whereby after a few stays I started to receive free WiFi, non-suite upgrades, and a small point bonus. After taking the leap, I completed the Hyatt Diamond Challenge earlier this Fall, and have since enjoyed confirmed suite upgrades, complimentary breakfast, welcome amenities at all properties, and a decent point bonus for my stays.

Just this week, Hyatt announced that they’ll be removing the 20% off MyElite rate for both Platinum and Diamond members. They described the offer as a beta-test this year, and something that could have been discontinued at the end of the year, which they later decided to do.

A frequent stayer at Hyatt properties, I wanted to take a look at what the disappearance of this MyElite rate would do to my spending.

First off, it’s important to note that Hyatt Platinums and Diamonds return to Hyatt because of the elite benefits. If the cost of the room is 20% cheaper, that’s great, however if the same person is going to stay at that hotel regardless of the discount, Hyatt is effectively loosing 20% of their income right off of the bat.

On the flip side, one could make the argument that Hyatt elites come back time after time because of the discounts. I partially fall into this category, as I do find the rates at Hyatt’s to be most often reasonable, or not out of line (though, there are many exceptions).

I’ll be paying more for Hyatt stays now, and I’m not too happy about it.

Let’s look at the Hyatt Regency DFW, the hotel that will play host to this April’s Frequent Traveler University. I chose next weekend as the rate I would look at, for a stay over Saturday night.

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As you can see, the My Elite rate is $104, while the best available Hyatt Daily Rate is $129. Assuming this was in 2015, That’s $25 I wouldn’t ordinarily have spent, but will now have to thanks to the removal of the MyElite rate.

I still have AAA, which usually accounts for a 15% discount, though I’ve found the MyElite rate to be offered much more, and for much more availability for some reason. When plugging in an AAA discount, often times it raises the price and doesn’t make sense, and I can’t think of one time this year where I actually used it at a Hyatt, though I do understand the times it can be beneficial.

I can see Hyatt’s point of view here, as they effectively loose 20% of income on a guest who would have probably stayed here anyway. However, looking at the daily rate of $129, I might consider a nearby property to be cheaper, even without my elite benefits.

It looks as if Hyatt has pulled the plug for the next year on this, so I can’t see this offer returning anytime soon, however I’m happy they are still retaining their Points and Cash option, since combined with a Diamond suite upgrade, that can be a very lucrative offer.

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Comments

  1. mbh says

    I will certainly miss it, but the MER made it feasible for me to do the diamond challenge, so I am very grateful to have had it in ’14. And, as long as I have my diamond status, I think I’ll be choosing Hyatts. After that, who knows?

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