I have had the fortune of staying at Hyatt hotels while on business for the past couple of years. They have been generous in how they accommodate me and I have been loyal. Recently, my membership level was downgraded and according to the membership agreement they were correct. I spoke to another frequent guest who experienced the same demotion. He had stayed with Hyatt around the world in the past year. The cost of the rooms he booked at a Park Hyatt in Europe, Asia and Australia often went for 15 times or more compared to one night at the local Hyatt Place. Hyatt institutionalizes a formula that the number of nights stayed is the metric that determins your loyalty level. So a $60 night is the same as a $800 night. Would you rather have a customer staying 50 nights at $79 a night ($3,950 gross) or a guest lodging 30 nights at $800 per night ($24,000 gross)?
Not all things are equal. Be thoughtful about how you measure loyalty. I am now shopping around for alternatives on my coming trips because the benefit of staying with Hyatt can be easily replicated by another chain. Loyalty is not always about the most, it may be about how sticky you can make an experience. One poor decision can dissolve years of loyalty. Reward loyalty but also understand what behavior you are supporting.