Hyatt has announced a series of changes to its award chart, including (gasp) peak pricing. It’s not as bad as it sounds – we’re not talking Marriott numbers here. The new redemption rates apply to all award types and go into effect in March 2020. To off-set this negative news, Hyatt is also introducing better redemption rates for Spa, Dining and More awards in January.
Off-peak pricing
Hyatt has taken a page out of Marriott’s book by introducing peak pricing to its award chart. Starting March 2020, award nights will drop by about 30% for off-peak pricing and increase around the same amount for peak travel dates.
A free night at a Category 1 Hyatt hotel will range from 3,500 – 6,500 points. Top-tier Category 8 awards will range from 35,000 – 45,000 points. Considering standard Category 8 award nights currently go for 40,000 points, the new pricing structure may not be such a bad thing.
Redemption rates aren’t up there with Marriott’s (yet), with the highest peak rate being 45,000 points for a Category 8 award. If you’re a frequent off-peak traveler, you may actually end up saving on Hyatt award bookings when this new pricing structure goes into effect.
Existing bookings
If you’ve already booked a Hyatt award for March 2020 or later and the rate goes down, Hyatt will automatically refund the difference to your account. If the rate increases, you won’t be charged extra.
In other words: If you plan on redeeming points for a Hyatt stay in March or after, you should consider booking now. If the rate increases, you’ll have saved points and if it drops, you’ll get a refund. No points lost.
Points + Cash Awards
The new Hyatt peak and off-peak award rates apply to Points + Cash bookings as well. Awards will continue to be priced at 50% of the standard cash rate and 50% of the standard point rate.
Dining, Spa and More Awards
Starting January 29, 2020 Hyatt will introduce improvements to its redemption rates for Dining, Spa and More awards. In some cases, the same number of points will get you twice the credit.
For example, at the moment you can redeem 5,000 Hyatt points for a $25 dining credit. Starting in January, the same number of points will get you a $50 credit.
It’s always good to have options and a more favorable redemption rate provides just that.
The good v. bad
Hyatt has always been pretty good about balancing out negative changes with positive ones and that’s the case here. With new peak and off-peak pricing, members may either save 30% over the standard redemption rate or pay 30% over it.
It could work out favorable if you’re traveling during off-peak dates, though it’s not ideal for those who use their points to save on top-tier hotels during peak travel season.
I don’t know about you all, but I tend to save my points for high-end hotels that I can’t justify paying out of pocket for. The fact that Hyatt is inching closer to Marriott’s (pre-Bonvoy) 50k+ rates for a top-tier award is not something I’m thrilled about.
Redeeming points vs. Cash back rewards
On the other hand, I often find myself calculating the value of points against the value of cash back rewards. I want at least 2% in value for my award redemptions and if that doesn’t work out, I use cash back rewards as opposed to Hyatt points for my bookings. The off-peak awards might create more scenarios where redeeming points makes more sense.
When it comes to top-tier hotels, points will probably continue to be the best redemption option, as opposed to Points + Cash.
The good news is that Hyatt has stated that peak/off-peak designations will not change – in other words, pricing isn’t dynamic like it is with Marriott. When inventory opens up 130 days in advance, the peak, standard, and off-peak dates will be set and won’t deviate. We’ll see.
Final thoughts
Hyatt’s new peak/off-peak pricing isn’t all bad. We’re getting three months advance notice and rates aren’t dynamic, so there should be less unpredictability. If you’re an off-peak traveler, you may end up saving points on award stays. But if you’re one of those people who uses points for high-end hotels during peak travel dates to maximize value, it’s less than ideal.
Whichever bucket you fall into, it’s a good idea to book your Hyatt award stays before peak pricing is implemented. That way, you’re pretty much guaranteed a lower rate regardless of how your award prices out in March.