Hyatt enters Airbnb territory with new vacation home booking platform
The hotel industry's brand-building bonanza continued Thursday with Hyatt adding its latest offering: a short-term vacation rental platform known as Homes & Hideaways by World of Hyatt.
The vacation rental platform, expected to roll out "in the coming weeks," will feature "thousands" of homes to rent in the U.S. A company announcement indicates the offerings will range from beachfront escapes to mountainside chalets as well as cottages, townhouses, apartments, penthouses and "much more."
It is the latest instance of a hotel company throwing its hat into the ring of vacation home rentals, following in the steps of Homes & Villas by Marriott Bonvoy, Accor's Onefinestay and Mandarin Oriental Exclusive Homes.
"We are committed to evolving access to the type of accommodations World of Hyatt members are seeking that go beyond our hotels – from a large family who travels together or guests looking to work from anywhere for an extended period of time," Amy Weinberg, Hyatt's senior vice president of brand, loyalty and data, said in a statement.
Don't view this as an opportunity to list your own home directly and suddenly get into business with Hyatt, however. It appears the company is going the same route as its competitors by focusing only on professionally managed homes for its platform. The move involves Hyatt utilizing a partner, Lowe, that will purchase and operate the vacation rental management business of the firm Destination Residences Management.
The announcement didn't say much about where initial locations will be beyond noting listings will be in "key travel destinations" like Hawaii and Colorado, with plans to grow the platform globally.
World of Hyatt members will be able to earn points and elite night credits when staying at a Homes & Hideaways property. However, the company announcement hints that, like how Marriott's Homes & Villas platform is independent from the Marriott hotels booking page, the Homes & Hideaways booking platform will run on a separate page from Hyatt's hotel reservations page. World of Hyatt members will still have the opportunity to use points on home rentals and receive standard loyalty tier bonuses on points earned.
Hyatt's brand buildup
While Homes & Hideaways isn't a new hotel brand, it is the latest example of Hyatt's ongoing growth streak. The company may have lost its partnership with MGM Resorts in Las Vegas, but it added the Hyatt Studios extended-stay hotel brand to build up its presence in smaller cities. It also bought the Mr and Mrs Smith booking platform of luxury and lifestyle hotels, a blow to competitor IHG Hotels & Resorts.
What drives the decision for Hyatt to explore new brand offerings?
"Everything that we've ever looked at, as far as [mergers and acquisitions] matter or from a developing lens, is the customer base: that we can serve the customer base that we know better and deeper and broader and, secondly, if it is a customer base that is similar to our existing customer base, which is at a high end," said Hyatt CEO Mark Hoplamazian this week at the Skift Global Forum.
Even Hyatt Studios is supposed to operate at the higher end of the extended-stay hotel market compared to recently launched midscale competitors. The high-end logic means Homes & Hideaways properties are almost certainly going to be more expensive than the typical vacation home rental.
No Airbnb killer
Hotel companies entering the space are not a sign the knives are necessarily out for Airbnb. It's going to take a lot more than a management contract switcheroo for Hyatt to compete with Airbnb: Homes & Hideaways might launch with "thousands" of listings, but Airbnb has more than 6 million active listings around the world.
But various hotel company CEOs and even Airbnb CEO Brian Chesky this week indicated they see their businesses as different segments of travel. Hotel companies entering the vacation rental business are more about having something to offer their loyalty members across a variety of experiences, whereas Airbnb can be more of an entry point to travel.
"There is overlap. I'm not going to pretend there isn't, but I do want to say there's less overlap than anyone realizes," Chesky said at the Skift Global Forum. "Airbnb allowed a whole bunch of people to travel that weren't traveling."
Related reading:
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.