Why Hyatt Is Choosing Luxury Over Affordability | WSJ The Economics Of
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- čas přidán 14. 06. 2024
- Marriott and Hilton are five times larger than Hyatt by property count. But Hyatt’s portfolio shows it wants to play in a different league. With 70% of its rooms categorized as luxury and upper upscale, Hyatt has the highest average daily rate. So how is the hotel chain’s plan working for the company?
WSJ explores this strategy and how it attracts more than just overnight guests.
Chapters:
0:00 Hyatt’s size
0:34 Selling off assets not in luxury tier
1:10 Acquiring more luxury brands
2:31 Building a luxury audience
The Economics Of
How do the world's most successful companies generate revenue? In this explainer series, we'll dive into the surprising stories behind how businesses work--exploring everything from Costco's "treasure-hunt" model to the economics behind Amazon's AWS.
#Hyatt #Hotel #WSJ
The gap between the price you see and what you pay is getting worse: on.wsj.com/4btISeH
I stayed at the Park Hyatt in Tokyo and it was the most impressive hotel I’ve ever seen. Perfectly immaculately clean and beautiful in every way.
That is a great Hotel, and location.
And it’s now closed for a year and a half for a complete renovation.
My favorite city hotel in the world. I hope the renovation won't alter the timeless decor too much!
But isn’t that Tokyo for you in general?
@@lewizzrocks you've never stayed in an apa hotel have you
Hyatt has the best loyalty program. They treat us well.
Their points are so valuable
Ohh dear..key😊
They also have great marketing ;)
hyatt goes after the best 10% of the hotel accomodation business worldwide. smart
Funnt enough, I essentially exclusively stay in Hyatts, and I rarely have actually paid. Their points value is a lot better than others.
Wow a Marriott & Hyatt vid in one day
is this how WSJ doing advertising for companies these days?
you know it
Hyatt has accommodations and support that has always exceed the value I pay. Our overnight stay in San Antonio most recently at the Grand Hyatt was a amazing our mini golden doodle was welcomed we had 16 ft moving truck that was valeted (we called in advance to ensure space) and we felt safe sleeping with our U-Haul protected and the comfortable beds at the Hyatt! What an experience and it was connected to river walk which made it nice for us to take the dog out to walk and enjoy some tourist stops while moving to Arizona!
Hyatt got me in their loyalty program with their credit card even though I am not wealthy. I stay just a couple times a year.
Chase's relationship with Hyatt is a significant value proposition for its UR program as well.
I just stayed in the Park Hyatt, Istanbul. Luxury rivaled Asian luxury brands such as Banyon, Taj or Raffles. I was really impressed.
Constantinopole?
There was an AYSO board member convention that my mother had to go to in Long Beach. We stayed at the Hyatt there, and it made a great impression on me as a kid.
Amazing hotel.
let's not forget their customer service which is top notch! Of all the hotel chains Hyatt is the best! They don't penny pinch and they interact authentically with their guests. Smaller footprint but way better experience x10. We go out of our way to stay at Hyatts each and every year.
I stayed in Hyatt over Shanghai.. not a central area, some sort of suburb, it looks like a gated community.. i was paying something like 70.00 a night with full buffet breakfast... however, i noticed if you book from Booking or Expedia, it actually cost more.. lol... i do see how they wanna push to overseas.
Booking direct is (almost) always cheaper, platforms like booking and Expedia take a %
@@th0master If you book airfare with the hotel, the whole package is much cheaper than doing it separately. Also if you book directly, you are charged a whole bunch of junk fees that most does not apply to Expedia.
i guess in chongming? most hyatt hotels in shanghai have really bad reviews. next time try park hyatt suzhou and grand hyatt hangzhou. they are the two great gems around shanghai hyatt hotels.
Thank you for sharing.😊
I stayed in the Hyatt Regency Chicago last year and loved it. Whereas the Hyatt in San Francisco Union Square was more lackluster. Really depends on the location I guess.
It’s a mass hotel chain, which tries to fit in the middle class of say.. between M/O Four Seasons and the normal Marriott Hilton mass chain brands. And it works.
I am a huge fan of Hyatt I've been a member for years, even though they have smaller market share their brand is 100%
As a globalist, I love Hyatt.
Hands down best hotel program on the market now. Let’s keep it high quality ❤
I seem to be an outlier compared to every other reviewer, but when I began developing my lodging loyalty over a decade ago I never found myself any more wowed by a Hyatt stay compared to a Marriott or Hilton one. I have yet to see any advantage as a World of Hyatt member that makes up for its lack of availability worldwide.
Hence why I’m simultaneously a Hilton Diamond and a Marriott Lifetime Titanium.
Look at your cent per point redemption rate on those hilton and marriot redemptions. Pretty poor compared to Hyatt. Hyatt doesn't do fully dynamic award pricing like mariot and hilton have done to inflate their award rates.
The only advantage to me is how much their points are worth compared to those of their competitors.
This comment reads like ChatGPT.
Clearly an ad
Hyatt has the best loyalty program hands down!!!
so they averaged out the gross revenue of how many properties they had and thats how they came up with the average? Not every property that is a hyatt franchise is rated above 4 star let alone worth 200 a night...
Now they just need to get their US hotels to honor the loyalty program instead of having me call someone up every time the hotel doesn't honor it.
Grand Hyatt hotels are quite plush in my experience.
So happy for you 😂😂
@@AndreyRubtsovRU well I'm not in that job anymore so those days are gone 😂
I'm Hilton Diamond and have seen no discernible difference in quality of service, upgrades, or anything of that nature. The Points Guy raves about the Hyatt CC and this video is pushing me further into that direction.
Greattt
should be called GYATT hotel
Edit: Thank yall skibidis for 25 likes!
Their main rival is the Rizzi Carlton
@@krasnamerah1926 LOL
I recently stayed at a Hyatt in Charleston, SC and was not impressed; I expected much better. The toilet flush valve was broken, toilet ghost flushed every 5 minutes. I eventually just turned off the water supply in order to sleep. Secondly, the breakfast was very inadequate, no Danish, fresh fruit was limited to green apples. If they're striving for excellence, they have some wood to chop.
The Hyatt place and house?
The toilet problem is unacceptable. Pity. But I've never experienced a decent complimentary breakfast in the US. Have you?
Was at their hotel in London for the weekend
Summary:
1. Target rich freq traveler = high profit margin
2. Light asset => huge diverse portfolio
3. Focus on M&A hotels/platforms with existing customers
If they sell the hotel to outside owners, then the owners do not necessary have the obligation to use Hyatt brands and pay them royalties/share profit right? One fine day, the outside owners can just discontinue using the Hyatt brand and come out with their own, is that a possibility?
sure, another hotel chain could outbid them for the rights to use the property. But the contracts are long and stipulate that they be given due warning.
When diversifying, make sure its to countries tht thrive on great customer service. Mandate tht great customer service is pivotal. Trinidad 🇹🇹 customer service need some work. My experience.
Stayed at Hyatt in montreal. Worst hotel experience on my trip. More expensive, but entrance had a stupid locking system that could kill during a fire, first room they showed me was not even cleaned from last visitor, and shower took over 30 minutes to start dispensing hot water. Was in completely cold water 30 minutes into my shower!
Hyatt going for quality over quantity, I see 🧐.
i really like your yoga videos
Nobody thinks that "owning that real estate" adds "financial risk"; the real estate is the least-risky part of the hospitality business. Owning buildings lowers ROI, and selling it improves certain stock-market metrics, but there's no reason to think that it makes long-term business sense.
I’ve stay a few Hyatt hotels and quality and service was great!!👍🏾
They acquired "Alila", which I find too on the nose, since it means (often maltreated) servant in my home language. 😂
The footprint is now over 2000 as of 2 weeks ago, I wish they could include that so the video could age better…
Always felt hyatts hotels are not consistent. Prefer Hilton and their affiliates like Conrad.😂
I work in Melbourne Australia and the Grand Hyatt on Collins St is prob the fanciest hotel in the city.
No?? Ritz Carlton Melbourne is
“Why Hyatt wants to be your most expensive hotel option” because they’ll get more money…
I stayed at one in Shanghai. It was decent. Upscale without it being opulent. Would I stay there on my own dime? Nope.
I’m team Hyatt all day 🤌🏽
"Asset Light"
The downfall of every great brand.
In the age of ABNB, can you really blame them?
Yes they wanna be the american express of the hotels. Smart for them to find their own niche.
The proceeds of property sales are not "earnings". Read a book, WSJ.
Sokos Hotels
Cater to the elite instead of the mass
Proves to be the path toward profitability and the all important investor return
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Their point availability isn’t great though, unless you are in the US
Narrator
sounds like BOB from Bob's burger.
I really like Alila Ventana Big Sur!
This is such a subjective and illusory topic. I have been in cities where the comfort inn has better quality than the hyatt and vice versa. The hotel game is based on the individual location but we always deny that fact and act like branding means anything when 5 mins on Expedia could prove different. If this is there new business plan than the person in charge clearly dosent understand the industry as well as they think
Hilton is the best!++
Don Draper ?
Why hotel stuff gets lowest ever possible salary even the world wide brandy hotels?! Dramatic unfair!!
They spend more because i's NOT their money. And the money they spend is treated as a business expense that gets written off each year as a cost of doing business. Hyatt is just part of the 1%'s money shuffle that makes us pay for their lavish lifestyle. I will actively avoid Hyatt properties where I am able. Thanks, WSJ!
72 million for more than 1500 properties. how is that so cheap? can anyone please explain.
They are just listings…..
So basically they want to be apple of the hospitality business, only catering premium products
Wait until Hyatt has to address the impact of AGI on the hospitality industry.
what do you mean?
@@nameundefinedname5307 What happens in a world with UBI or something equivalent for the masses who are unemployed, for the masses who have a lot of leisure time but not a lot of disposable income?
Thumbed down because the voice of the narrator was difficult to hear.
99% of people who watch this video will never be able to afford to stay in one of those rooms.
never going to stay at Park Hyatt. furnitures from the 60s.
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One of the most annoying examples of corporate speak that I have ever been subjected to. Last sentence of the piece- "Having a pathway to a bigger share of the customer wallet for our core base" . The language is unbearable.
😂
Im to poor for this
Everything wrong with Hotels comes down to one word. Franchising. F Hyatt, F Marriott, F Hilton.
who cares about Hyatt! how about Ritz!
To fund protest
Anyone who spends crazy amount in hotel without any real thing like view, location or prestige is not really bright. No matter how good the amenities are or the luxury is it's just four walls. It is not a place to spend money. There are spectacular places around the where there is everything nature, culture and food where money can be spent. I am not against good service. However countless Hotels in asia prove that it is easily possible with a modest amount.
I own 45% of Hyatt
Not much new insights
Why is every narration of a WSJ video SO LOW?
Worst luxury hotel brand from food to properties being horrible maintained and theft from maids
snobby
Paid story for sure
How many of the comments on here are from fake accounts by paid influencers? 🧐
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Greattt