Why Hyatt's award pricing update was my favorite loyalty program change in 2022
It's almost never exciting news when a company announces changes to its loyalty program. Even though most travel rewards enthusiasts have come to expect regular devaluations to their favorite award redemptions, the news of it happening is not usually welcome with open arms. In turn, my mantra has always been to "earn and burn" my points as much as possible because I know if I hold on to them for too long, I will eventually require more points for redemptions.
When World of Hyatt announced it was moving from having a standard award chart (where each night in the same category cost the same amount of points) to peak, standard and off-peak pricing, the change was not met happily. Many, including myself, thought this could mean that most nights would be priced at peak rates and there'd be little standard or off-peak points availability.
I'm glad that hasn't been the case. Here's why the change in World of Hyatt's award pricing has been my favorite update in 2022.
History of the peak and off-peak pricing rollout
Hyatt initially announced the news of a change to peak and off-peak pricing back in 2019, and it was supposed to be introduced in 2020.
However, the hotel group delayed the rollout of the new pricing due to the coronavirus pandemic. In the end, these pricing changes went live in October 2021 for stays beginning in March 2022. Here's a look at Hyatt's award chart:
| Hotel category | Off-peak points per night | Standard points per night | Peak points per night |
|---|---|---|---|
1 | 3,500. | 5,000. | 6,500. |
2 | 6,500. | 8,000. | 9,500. |
3 | 9,000. | 12,000. | 15,000. |
4 | 12,000. | 15,000. | 18,000. |
5 | 17,000. | 20,000. | 23,000. |
6 | 21,000. | 25,000. | 29,000. |
7 | 25,000. | 30,000. | 35,000. |
8 | 35,000. | 40,000. | 45,000. |
Unfortunately, there was another Hyatt devaluation in March 2022 when many hotels shifted categories, with 70 hotels moving to higher categories. This change especially hit hard for some of the more aspirational properties as nine hotels moved from Category 7 to Category 8.
With the move to peak and off-peak pricing, Hyatt said that most hotel award nights would still price at standard rates, but I know I was not alone in my initial skepticism.
Related: TPG special analysis: How Hyatt's peak and off-peak pricing changed average award rates
Stretching points further
The best result of the pricing update is that it has allowed me to stretch my points further by booking award nights on off-peak dates. Using fewer points to book off-peak award nights means I can make more redemptions or stay longer.
I'm fortunate to usually have some flexibility in my travel plans — either in dates or the destination. I've been able to maximize that flexibility by using Hyatt's points calendar to find dates with off-peak rates. The only bad thing about the calendar is that just because it shows an off-peak points rate doesn't mean there's availability. If a hotel I'm looking at doesn't have off-peak rates or availability at the time I'd like to go, I'll either look for different dates or a different destination altogether.
I decided to go to Costa Rica during the rainy season this year, which fortunately coincided with off-peak pricing for some Hyatt hotels. I booked two nights at the Andaz Costa Rica Resort at Peninsula Papagayo and three nights at the Tabacon Thermal Resort and Spa, both Category 5 hotels, for 17,000 points per night. Though it was the rainy season, cash rates for these hotels were still $350 to $500 per night at the time of booking (and increased as the stay dates got closer), which meant I could exceed TPG's valuation of Hyatt points with these redemptions.
Related: 9 budget strategies for getting the most out of your points and miles
Requalifying for Globalist
I earned Globalist in 2021 thanks to Hyatt's promotion that allowed a reduced qualification of 30 nights. I knew I would not have enough stays from my travels this year to reach 60 nights organically, but I wanted to remain Globalist throughout 2023. So it was time to get creative.
I'm fortunate to have a few Category 1 Hyatt Place hotels near where I live, and since award nights count toward earning status, I looked to do a few staycation mattress runs. A quick check of the award calendar showed many off-peak nights at 3,500 points. A few of these low-cost award nights helped me close the gap in the stays I needed to requalify for Globalist.
I've even been able to combine off-peak nights with promotions. For example, in early 2022, Hyatt had a Bonus Journeys promotion where members earned 2,022 points for every two qualifying nights. And those with a Hyatt credit card could also earn 1,000 points for every one night in 10 qualifying cities. Several Category 1 Hyatt Place hotels in my area qualified for the extra 1,000 points per night. So I booked two off-peak nights for 7,000 points and received 4,022 points back, bringing my cost to just under 1,500 points per night for those stays.
I may do something similar in the new year since Hyatt has a promotion beginning Jan. 2 for cardholders to earn 1,000 points after a two-night stay at a Hyatt Place or Hyatt House through March 5.
Related: 5 easy ways to qualify for Hyatt Globalist status
Booking luxury hotels
It's not just by booking off-peak nights at the lower-tier hotels that I've benefited. As someone who looks to maximize my points as much as possible, booking higher-category hotels like Park Hyatts has always been a splurge to me. So it's not something I've done very often in the past. But with the introduction of off-peak award rates, it has become more palatable for me to splurge on these redemptions.
I've booked stays this year at the Park Hyatt St. Kitts and Park Hyatt Zurich, both Category 7 hotels, at off-peak rates of 25,000 points per night. Though I didn't book it, I also found available off-peak nights for the Category 8 Park Hyatt Paris-Vendome – 35,000 points per night when the cash rate was over 1,500 euros.
I'm looking forward to finding and booking more aspirational hotels like these at off-peak award rates.
Related: The ultimate guide to redeeming Hyatt points
Bottom line
Changes to loyalty programs are usually met with trepidation and dread, but Hyatt's update to peak and off-peak pricing has somewhat surprisingly been a favorable change.
I still book award stays at standard rates when I must but have so far been able to avoid peak rates on points. If I have free night certificates available, I look to redeem those instead of points for standard or peak rates.
Though I don't know what the future holds for Hyatt's award pricing, I'm optimistic that this change will continue to be beneficial.
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