Posted by William Charles on December 4, 2019
Hotel Booking

Published on December 4th, 2019 | by William Charles

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World Of Hyatt To Introduce Peak & Off Peak Pricing In March 2020

World of Hyatt has announced two changes coming in 2020:

  • Introduction of off peak and peak pricing on award bookings in March 2020
  • Get more value from dining, spa & more awards (up to 50% more) in January 2020

Peak & Off Peak Pricing

In March 2020 Hyatt will introduce peak and off peak pricing. The price for a ‘standard’ rate (e.g not peak or off peak pricing) will remain the same, as will the number of categories (8). If you book a property before these new rates go into effect you’ll keep the same pricing, unless the property falls into the off peak pricing for your dates in which case you will be automatically refunded. The new award chart for standard rooms is as follows:

 

Cash & points rates will still require 50% of the points amount. For example a category four property would be 6,000 points + cash off peak, 7,500 points + cash standard and 9,000 points + cash for peak.

Dining, Spa & More

Hyatt is also increasing the value you get when redeeming points for credit towards dining, spa, in-room purchases and more. Previously you’d get 0.5¢ at the lower end and 0.833¢ per point on the higher end. Now it’s 1¢ on the lower end and 1.54¢ on the higher end. It’s a shame you need to redeem so many points to get the higher point value as otherwise I could see it being useful.

Our Verdict

It’s always hard to know how bad changes like this are, without knowing how Hyatt will determine what are peak and off peak dates. The other issue with something like this is that there is less transparency and it’s significantly easier for Hyatt to devalue points without media and loyalty members really knowing (by simply increasing the number of properties and dates that fall under peak pricing). Obviously there will be some upside with the off peak pricing and I suspect at least in the short term we see some good availability there to reassure loyalty members that this isn’t a huge devaluation, in the medium to long term I suspect we will see more peak pricing. The good news is that if you book properties now you effectively lock in the standard pricing and if your dates fall under off peak you’ll get automatically refunded which is nice.



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Josh
Josh

Does anyone know how the free night from the Hyatt CC factors in?

BB
BB

It is remaining a category based award, at least for now.

Preacher
Preacher

I wonder what the peak and off peak amounts will be for Miraval?

Brandon
Brandon

Miraval Standard Room (40k off peak/ 45k standard/ 50k peak)
Extra Person (17.5k/ 20k/ 22k)

Miraval Suite (65k/ 75k/ 85k)
Extra Person (17.5k/ 20k/ 22k)

Corridor
Corridor

What about the Ziva/ Zilara?

BB
BB

They will also be impacted, and follow the pricing of cat 5/6 properties I believe.

Brandon
Brandon

All Inclusive Resorts
Category 1 (17k off/ 20k standard/ 23k peak)
Extra Person (8.5k/ 10k/ 11.5k)

Category 2 (21k off/ 25k standard/ 29k peak)
Extra Person (10.5k/ 12.5k/ 14.5k)

G
G

At present these are such great values. 17k would be a steal. I just booked the Jamaica Zilara. Been to Cancun, Cabo, and Vallarta.

KenB
KenB

I doubt this will be anything good for the all inclusive hotels…

PlugNPray
PlugNPray

Also want to know.

MickeyMouse
MickeyMouse

Ziva/Zilara IME have a 2nd person free anyways right?

G
G

Yes you can take two people with points booking but if you add a third (like a couple and child at Ziva) then it costs extra.

MickeyMouse
MickeyMouse

Definitely a devaluation overall, especially for desirable properties in California, Hawaii, and New York.

(PHNY, GH Manchester, Andaz Maui, Ventana Big Sur, Pretty much everywhere in SF etc.)

I have a Stay for example at a Cat 5 Andaz in April, currently the cash rate is $980 and there is still award availability at 20k per night. There’s no doubt this would be considered “peak” under the new program implementation meaning 25k nightly. Which for a multi night stay really does add up.

The only thing I like is that this in no way impacts Category Certificates because weather peak or off peak the hotel is still within the same category. I wish they’d test the off peak market for a year before adding the peak market in to see how it works for them, a guy can dream right?

I know this will be beneficial for Chicago Properties which from December through March have really low cash rates, but still are Category 3-6 properties. I’ve seen Thompson Chicago at $90, even though it’s a Category 4. With the new system I’m guessing it would be a 10k redemption during those periods?

(1,500 less per category up to 5,000 total) That’s my understanding.

I’m wondering also how they’ll determine “peak or off peak”, will that be tied to the cash rate? I know it’s not dynamic like Hilton where it changes in live time and there’s a set calendar than cannot be changed (it says).

For example – I’ve stayed at HH in Texas where it’s a Cat 1 but the Cash Rate is $118. Personally I would consider this “standard” so hopefully no change.

One last thing – Will all properties have Peak, Off Peak and Standard? Or will some just be Standard for the entire year (those with fair occupancy, but not booming and not low occupancy).

NK3
NK3

Great comment.

Regarding the Andaz Maui–that property is infamous for going out of its way to limit points redemptions. For a while you could only book stays from 1-3 nights or 8+ nights (so no award stays from 4-7 nights, which is probably the most common length). I recently helped friends book there, and had to try every combination of length during the 7 night stretch to see what was bookable with points–in the end it was a single 3 night stretch. I would not mind the peak pricing at this property if they just made more award space available. 35K points per night there is still a good use of points since cash rates are often 2-3x that.

MickeyMouse
MickeyMouse

I agree with you that Andaz Maui is a difficult property especially for Award Availability.

I believe it says somewhere that they cannot designate more than half the year as “peak”.

Regarding staying 1-3 or 8+ nights, if you’re a Globalist and contact the Revenue Manager directly they’ll typically make an exception if you’re seeing availability for 8 nights, but not 7 for Award stays. But if you’re not seeing availability even for 8 nights then not much they can do.

35k is still a good redemption, but I honestly doubt they’ll have any “off peak” dates to even it out, which is the supposed intent of the changes.

For everyone I would recommend booking Award stays in February even through the end of 2020.

This way you can:

1) Lock in the current rates even if they become peak.

2) If it changes to “off peak” Hyatt will refund the difference.

3) You can cancel the booking and be fully refunded within the cancellation period which the most I’ve seen is 14 days.

There’s definitely upside, but no downside aside from locking up those points.

NK3
NK3

Great tip on the contacting the revenue manager. Unfortunately I am a lowly discoverist, and I had to walk my friends through how to get a Hyatt account to make the booking (they were just burning through hundreds of thousands of UR points through the Chase portal otherwise).

Agree with your suggestion of booking somewhat liberally, and cancel/rebook as needed (provided you have the points on hand). I will definitely comb through my upcoming travel plans to do that, much like I did with Marriott this year.

Abey
Abey

Everyday I pray for a new Amex/Chase Hyatt Business credit card…

P
P

Devaluation of the free night certificate basically, but as long as they don’t increase the annual fee of $75 of the old version then it’s still good.

They already upped the amount of the cash portion for cash and points, now this. Maybe in 2021 or late 2020 we’ll more categories as they integrate all those new hotel brands they’ve acquired.

NK3
NK3

I do not really see this as a devaluation of the free night certificate, since that is tied to the category and not the point value. The certificate can now be worth up to 18,000 points.

VL
VL

Huh.. Marriott certificates were also tied to category, but not the case anymore. This change is a carbon copy of what Marriott did, so I would not be surprised if the certs will also change from Cat 4 to 15K instead. I do not expect any program to go for a “good” change. Now everybody is devaluing their programs, so no competition really.

Francisco
Francisco

Marriott wasn’t tied to a category but up to 35,000 or 50,000 points depending on the card. Hyatt is to a category 4. I’m sure down the road this will change though.

Austin Miller
Austin Miller

Does this mean Zilara is 25k plus 12.5k for two people (37.5k?) Or is two included in the price and any after is more?

Katie
Katie

2 are included in the price and you pay for the 3rd (and 4th). So 4 people in 1 room actually ends up costing the same as 2 rooms.

MickeyMouse
MickeyMouse

+1

scwam
scwam

I just didn’t tell them while I checked in. Had my wife hold the kid in the lobby at that time. Restaurants always saw us as a party of three and never was charged for the child upon checkout (even for the main restaurant meals).

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