If, like Hyatt, you combine a revenue-based earning structure in your loyalty program with a fixed award chart, then regular award increases are unavoidable.

Hyatt last did this in their World of Hyatt in 2021, and we all know the developments in hotel prices since then. Thus, the price increases that will come into effect in May are quite steep and are being heavily criticised from all sides. However, the criticism should be more moderate if the accrual velocity were also taken into account correctly.

An unexpected side effect of this increase in award prices, however, is that the conversion to Frequent Flyer miles suddenly becomes more interesting, as nothing is changing there. Previously, you had to weigh up whether to use a Category 4 reward night or a short-haul reward flight with Air France or KLM, which you could get by transferring points into Virgin Atlantic’s Flying Club program. From May, for the same number of points, you will only get a Category 3 reward night – but still the same reward flight.