Do recent World of Hyatt changes signal the demise of the hotel loyalty program?

28.05.2024 - 12:05 / thepointsguy.com

Over the last year, World of Hyatt has made several changes to its loyalty program and portfolio, making loyalists question whether the beloved program is no longer the darling of the hotel orbit.

Hyatt and MGM Resorts International announced the end of their strategic relationship in July 2023. (Marriott swooped in as the new partner a few days later.) Then, in February 2024, Hilton wooed away Hyatt's partnership with Small Luxury Hotels of the World.

Hyatt combated its SLH loss by rolling out its first batch of Mr & Mrs Smith properties in April 2024. However, this addition made Hyatt enthusiasts question if the hotel brand was moving toward dynamic pricing since the participating Mr & Mrs Smith properties do not follow the standard World of Hyatt award chart.

So, are the changes to World of Hyatt a sign of the hotel brand's decline? Furthermore, will World of Hyatt start pricing all its award nights dynamically, similar to Marriott Bonvoy and Hilton Honors? In our opinion: Not exactly. Here's why.

Many award travelers are disappointed that Hyatt used dynamic award pricing for Mr & Mrs Smith. Certainly, we hoped Hyatt would fit the often-aspirational Mr & Mrs Smith properties into its award chart when it acquired the luxury and boutique hotel booking platform in 2023.

As TPG director of content Summer Hull noted in a discussion, "As more parts of their offerings are dynamic, that has to be acknowledged as a not-great trend that's a huge departure from how Hyatt has operated."

And she's right. We love that Hyatt still maintains an award chart and offers excellent World of Hyatt elite status perks on most stays. However, like Hyatt's previous partnership with SLH, loyalists won't get many of the Hyatt elite perks they love when staying at Mr & Mrs Smith properties.

There's a positive spin on why Hyatt uses dynamic award pricing for Mr & Mrs Smith properties: It unlocks the entire room inventory instead of just room categories designated for award redemptions.

"Transparently, members shared the challenges with lack of redemption availability at similar relationships — we've changed that with Mr & Mrs Smith," a Hyatt spokesperson told TPG. "While Mr & Mrs Smith hotels fall outside the standard award chart, this opens up an increased inventory and more flexibility for travelers looking to use points during specific dates. Now any room a member sees available for a cash rate, they can redeem for points — opening more room types and experiences to explore."

This is a fair argument, especially considering how the Mr & Mrs Smith booking platform works. Still, it's disappointing to find relatively low redemption value at many of the Mr & Mrs Smith properties you can book with Hyatt points. At least one