Hyatt CEO Mark Hoplamazian just made some comments about hotel loyalty programs, which I think OMAAT readers will find to be interesting. While I think some will take issue with the premise of what he’s saying, I’m not sure he’s wrong, though there is some nuance to it.
Hyatt CEO says points can make people feel objectified
Hyatt’s CEO recently spoke at the 2026 International Hospitality Investment Forum EMEA, and the topic of hotel loyalty programs came up. World of Hyatt is one of the fastest growing hotel loyalty programs, now with over 63 million members (it’s still a fraction the size of Hilton Honors and Marriott Bonvoy, but it’s growing fast).
Hoplamazian suggests the speed of growth for World of Hyatt can be attributed to the program being built to prioritize connection over points, suggesting that traditional points programs can sometimes be a barrier to building a lasting relationship with hotel guests. Here’s how he explained the transition from Hyatt Gold Passport to World of Hyatt:
“We conceived of it as an experience platform, not a points program, because oftentimes the most angry and irate guest emails I would get are when people feel objectified. They feel like this is just about a commercial transaction, and that’s about as far away from the spirit of our culture as you can imagine.”
“It’s based on emotional relationships, not on transactions. So from the very beginning, we thought about World of Hyatt being an aperture into many experiences.”
This is far from the first time that Hoplamazian has made comments along these lines, and he has frequently emphasized how he thinks experiences matter more than points. For example, in 2023, he made similar comments about loyalty, when discussing Hyatt’s increasing leisure focus, largely in the form of growing in the all-inclusive space:
“We’ve decided that a more enduring way to actually capture loyalty is through great experiences, and that starts with leisure. So we’ve shifted the portfolio along a very deliberate position, which is we can drive true loyalty that’s experiential loyalty, more than it is the currency of the points and becoming a prisoner of the loyalty program. And that’s worked.”
In the points world, I know many people take issues with Hoplamazian’s comments about how he thinks loyalty programs are more about the experience than the points as such. And I’m sure some people are even more frustrated by these comments in light of World of Hyatt’s impending points devaluation, whereby we’ll see the cost of stays at many properties increase massively during peak periods, reducing opportunities to get outsized value.
My general take is that the points aspect of hotel loyalty programs is “table stakes” nowadays. I don’t interpret Hoplamazian’s stance as suggesting that points don’t matter, or that those should be eliminated. Instead, I think he’s suggesting that there’s a lot more to a good loyalty program, and to building a long term connection with members.
Broadly, I do think too many travel industry executives overhype the extent to which they deliver a differentiated experience when it comes to guest recognition. However, I do think we have to acknowledge the extent to which World of Hyatt stands out in terms of helping travelers create meaningful experiences that go beyond points. For example:
- World of Hyatt Suite Upgrade Awards let travelers lock in a suite upgrade at the time of booking for up to seven nights with no capacity controls (as long as a standard suite is available), and that’s incredibly valuable in terms of enhancing the stays that matter most to members, and creating memorable experiences
- World of Hyatt Guest of Honor Awards are awesome for letting us extend elite perks to the people who are important in our lives, and that’s an opportunity to extend loyalty that you won’t find with many programs
- I think the single most important “experience” aspect of a loyalty program is making a good faith effort to deliver on the perks that are promised to members, and making members feel appreciated, and that’s something I truly feel World of Hyatt does more than its competitors
Let me expand on that last point. Marriott Bonvoy has a points program, has elite tiers, and arguably has a better rewards structure in terms of the number of points you earn for actual hotel stays (as a top tier elite, I value the return on spending more with Marriott than Hyatt — I earn 17.5x points that I value at 0.7 cents each, compared to 6.5x points that I value at 1.5 cents each).
But those points really are transactional. That’s not to say they don’t matter to me. Instead, it means I can crunch the numbers on how much of a return on spending I’m getting, and then that factors into my overall math on where I choose to stay.
Yet all too often when I check into a Marriott property as a top tier elite member, I feel like what I’d describe as being closer to indifference or contempt, rather than appreciation, for my loyalty. Especially in the United States, there’s just such little effort made to honor what the program promises.
I think this actually gets at Hoplamazian’s point. Marriott Bonvoy feels more like something that’s “just” a points program, rather than something that’s about creating experiences. I’d argue that if you want a good hotel loyalty program, you need both points and a big focus on experiences.
Now, to slightly counter Hoplamazian’s point, though, you don’t actually need a loyalty program to offer a great guest experience. Take Four Seasons, for example — the luxury hotel group does a great job tracking its guests, noticing their preferences, and making them feel valued, despite there being no actual membership number or points program associated with it.
Bottom line
Hyatt CEO Mark Hoplamazian has long been vocal about how he thinks experiences matter more than points when it comes to loyalty. While I think points are really important and I think the way he phrases things may suggest points don’t really matter, I agree with the premise of what (I think) he’s trying to say.
If you have a loyalty program that offers points but a lackluster guest experience, then that’s not going to create long term loyalty. Meanwhile if you have a loyalty program that offers points but has an even bigger focus on offering a good experience, that can create long term loyalty.
Admittedly many of us are frustrated by the upcoming points devaluation, but at least up until now, I think Hyatt deserves credit for its differentiated experience among the mainstream hotel groups.
What do you make of Hoplamazian’s comments about loyalty?
