Last week I had a chat with Hyatt SVP Amy Weinberg, who gave me a sneak peek of some changes coming to the World of Hyatt loyalty program in 2019. Overall I think these changes are an improvement and make the program more appealing to most customers.
For context, World of Hyatt launched two years ago as a replacement for the former Gold Passport program, and the reception ranged from negative to mixed. New tier names like “Explorist” and “Globalist” were mocked, some benefits were reduced, and some tier requirements were increased. For example, you can now earn status with qualifying nights or points, but before you could also earn status with a fewer number of qualifying stays. But I also give Hyatt credit for realizing the new program had some bugs and trying to go back to fix them.
New Benefits for 2019
World of Hyatt is formally adding new Milestone Rewards as of March 1, 2019, which will be additional benefits that come at intervals between the normal elite tiers. If you imagine that an elite tier is a collection of perks, priority service, and a special title, then these Milestone Rewards are more like one-off bonuses.
World of Hyatt was already offering something similar, but they weren’t always on a regular basis. Now, you’ll get something new every 10 nights. That regular pattern should help make the value proposition more clear. Some perks are net-new, like a choice between 5,000 bonus points, a $100 gift card, or a discount of 10,000 points when you redeem a FIND experience.
Other perks are being moved up earlier, like awarding two (2) club lounge passes to Discoverist members who reach 20 qualifying nights and another two (2) when you reach Explorist status at 30 qualifying nights. Previously, Discoverist members received no lounge passes, and Explorist members would receive all four at 30 qualifying nights. Similarly, two (2) suite upgrades will be awarded at 50 qualifying nights and another two (2) when earning Globalist status at 60 qualifying nights.
Stay 10 Qualifying Nights / Earn 25,000 Base Points
- 10% bonus points
- Free bottled water and premium Internet
- 2 PM late checkout
Stay 20 Qualifying Nights / Earn 35,000 Base Points
- Two (2) club lounge access awards
Stay 30 Qualifying Nights / Earn 50,000 Base Points
- 20% bonus points
- Free award night in a category 1-4 hotel (valid for 180 days)
- Two (2) club lounge access awards
Stay 40 Qualifying Nights / Earn 65,000 Base Points
- Choice of 5,000 bonus points, a $100 Hyatt gift card, or a discount of 10,000 points when redeeming for a FIND experience
Stay 50 Qualifying Nights / Earn 80,000 Base Points
- Two (2) suite upgrade awards
Stay 60 Qualifying Nights / Earn 100,000 Base Points
- 30% bonus points
- Two (2) suite upgrade awards
- Additional complimentary upgrades when available
- Complimentary club lounge access or breakfast on all stays
- 4 PM late checkout
There is one negative bit of news: Globalist members will no longer be able to renew their status at a lower threshold of 55 qualifying nights. They will have to reach 60 nights–the same as members earning Globalist status for the first time. I personally think the lower threshold for some members created confusion and am fine with this change.
The Future of Loyalty?
That last change, simplifying the qualification criteria for Globalist members, touches on a question that I asked Amy during our call. It essentially boiled down to how programs balance a desire to make themselves unique vs. making the program’s value easy to understand. I think Hyatt definitely needs to stand out from its larger competitors, and breaking out benefits at smaller intervals is one way to do that. In a world where it seems like everyone has status anyway, does it even matter if we have these big thresholds where we earn a special card and a panoply of perks? Notice that when I broke out the benefits above, I didn’t mention the elite tiers by name.
I think Hyatt is testing something really interesting here, and it may lead us to the future of loyalty programs. Think of it as a board game in which we all move one square with every night and pick up perks a long the way. It’s not a sorting mechanism with medals for the winners. Awards might even be tailored to the individual: you can get suite upgrades while I pick lounge access and someone else chooses bonus points. We’re still a ways from that. Today’s announcement, however, is a step in that direction.
