Let's talk about Hotel Loyalty Programs and why you should join. Joining a loyalty program is almost always a good idea. Loyalty programs are offered by airlines, car rental companies, and hotel chains.
This one post cannot cover all the ins and outs of hotel loyalty programs, but a recent experience made me realize that there are so many people who don't know about loyalty programs, and I wanted to highlight just some of the benefits from joining a program, to help others when it comes to getting the most out of their travel budget, whether they are doing that travel for business or leisure.
Why hotel loyalty matters - World Of Hyatt
A number of years ago, during a visit to Sydney, Australia, I had lunch at the Park Hyatt hotel in Sydney. I fell in love with the hotel and its location right on Sydney Harbour at that time, and I added a bucket list item to my "list" - despite the cost of staying at the hotel, I wanted to experience an overnight stay at the hotel at least once in my life. With rooms starting at over $US1,000 a night, it was a lofty goal, until I learned about Hyatt's loyalty program, and the World of Hyatt Credit card offered by Chase, which offered a signing bonus based on a minimum spend within a certain number of months after account opening. I signed up for the card, and once I had spent $2,000 within the first 3 months of account opening, I received 60,000 Hyatt points - more than enough for a stay at the Park Hyatt in Sydney.
This was my first experience with a hotel loyalty program, and since that time, wherever possible, I stay at Hyatt hotels, because stays at any of their hotels count towards accruing status (more on that in another post!)
In short, by joining a hotel loyalty program, you're positioning yourself to take advantage that comes with attaining status with the chain, including certificates for free nights; free breakfasts; suite upgrades; access to club lounges; all benefits that enhance one's travel experience.
Why hotel loyalty matters - one of the benefits
Let's talk about a recent real-life example where being a member of the World of Hyatt program paid off for me.
I had a need for a hotel for a 10 day stay, and I was looking to minimize my out of pocket cost.
The local Hyatt Place was offering a rate of $149 a night. By paying cash, I would have paid $1,485.16 for the hotel, and an additional $264.73 in taxes, for a total out of pocket cost of $1749.89. This works out to just under $175 a night.
In addition to the option to pay cash, there were two options for paying for the stay using points. The hotel is rated a Category One hotel in the World of Hyatt program. This means that "free" nights are typically available for 5,000 points per night (there is sometimes a slight variation to this, depending on whether it's an off-peak or peak date).
I could have booked the hotel and pay 3,500 points a night for a total of 35k points. Or, I could have booked the hotel using the points+cash option of 1,750 points plus $12 a night in cash. The cash portion of the points+cash option includes additional taxes, but a booking using points only does not incur taxes.
In this instance, I did not have 35,000 points to make a points booking, but Hyatt gives its members an option to purchase up to 55,000 points a year (and sometimes more, depending on promotions being offered).
When I made the booking, Hyatt was offering a 20% discount on points purchase. Typically, 5,000 points cost $120; with a 20% discount, the cost for 5,000 points was $96. (Hyatt often offers promotions with a greater discount).
If I had gone the points route, purchasing 35k points at a 20% discount would have cost $672, a saving of over $1,000 compared to the cash rate.
However, the points+cash option was an even bigger bargain; I purchased 17.5k points at $336. Including the taxes, the cost for the 10 nights was $472 (points purchase of $336 plus $120 for the cash portion, and $16 in taxes), offering a savings of over $1,250 compared to paying cash for the stay.
In other words, paying with points plus cash cost me $47.20 per night, versus $175 if I had paid in cash.
Why hotel loyalty matters - Final Thoughts
As I said, this just scratches the surface of a being a member of a hotel loyalty program; I plan on making this an ongoing series here on the blog. In the meantime, read about some of my recent hotel stays, where I was able to take advantage of the benefits of being a loyalist, such as my recent stays at the Park Hyatt New York, and the Hyatt Grand Central Hotel, also in New York.
If you're a member of a Hotel Loyalty Program, which program is your favorite, and why? What's the best benefit you've ever received by being a member?
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