Some interesting Hyatt statistics

I saw a thread about this on FlyerTalk, and was fascinated by some of the statistics here. Check out what Hyatt has posted on their “Hyatt Development” page:

The Gold Passport program has grown to over 9 million members as of June 2009. During the first half of 2009, these members represented 23% of total room nights.

I’m shocked that Gold Passport members only represent 23% of room nights. That means that substantially less than 23% of guests staying at Hyatt hotels are even members of the Gold Passport program, given that on average Gold Passport members stay much more frequently than non-members. So I’d guess that at most, 10% of guests are members of Gold Passport. That’s surprisingly low, isn’t it?

On average, Gold Passport members spend 16% more than nonmembers per stay.

That seems straightforward enough.

Gold tier members generate average annual revenue of $900 per member.

That’s impressive! A non-elite member generating $900 on average sounds pretty high. I guess this means that for the most part, non-elites only register for the program if they stay at least somewhat frequently, given how high the spend is.

Platinum tier members generate average annual revenue of $6,000 per member. Diamond tier members generate average annual revenue of $16,000 per member.

Holy cow, that’s amazing! Platinum status only takes five stays or 15 nights, while Diamond takes 25 stays or 50 nights. Let’s assume the average Platinum spends 20 nights at Hyatt properties and the average Diamond spends 60 nights at Hyatt properties, which I’m betting is on the high side due to the double stay credit promotions. That means the average room rate for elites is right around $300. So I guess it’s safe to assume most elites are staying at hotels outside of the US for the most part, given that room rates in the US tend to be much lower at most properties (although there are exceptions).

This just shows you the power of loyalty programs. $16,000 of annual revenue in exchange for a few benefits sounds like a deal to me from Hyatt’s perspective. No wonder they added elite benefits just recently.

About lucky

Ben Schlappig (aka Lucky) is a travel consultant, blogger, and avid points collector. He travels about 400,000 miles a year, primarily using miles and points to fund his first class experiences. He chronicles his adventures, along with industry news, here at One Mile At A Time.

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Comments

  1. Interesting. Just looking at my own YTD spend at Hilton as a Gold, I’ve spent just shy of $5000 (base) on 9 stays and 19 nights this year. I also have about 7 nights at about $1000 at Courtyards and 4-5 nights at other random hotels (a couple at Sofitel NYC, a couple NYC boutiques). My spend has been highly dependent on where I’ve had to go for work. 17 of my 19 nights at Hilton were in NYC, averaging $276/night. 6 Marriott nights were in an Atlanta suburb, averaging 130/night. My total YTD hotel spend is about $7000.

    I wonder what the average or median numbers of nights/stays are for each level.

  2. The number of non-gold passport members probably includes quite a few convention/wedding/event attendees who may not have many hotel nights in a year at a Hyatt.

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