The concept of elite status has been in the news quite a bit over the past few weeks. First off, Hyatt started giving away Diamond status to just about anyone (I only got an offer to match to Platinum 🙁 )
Then Hilton got into the game – matching many people to Hilton Diamond (including me!)
Some blog comments
There were many people who already had Hyatt or Hilton Diamond (the “hard way”) that were pretty upset about this “watering down” of top-tier elite status
Here are a few of the comments I’ve gotten on some of my recent posts talking about the Hyatt and Hilton status matches:
Bottom line is Hyatt had screwed themselves over this deal!! People are mad who did not get the status and who already had status through challenges and old fashioned way! They might get the business from few but they lost business from many!
In reality it devalues the program by flooding the market with so many new DSUs which are already difficult to use. I recommend current Diamonds to complain to Hyatt.
I am a long term (20+ years) Diamond who has qualified every year; good years and bad years. This past weekend Hyatt have the same status as I hold to people with one stay at a competitor and a credit card which gives them status.
‘Whining’ I don’t think so.
What I’m doing is calling out Hyatt on why I should remain loyal to them, when they have made the benefits that I have earned, harder to use.
No, I don’t want elite status with Marriott, it does nothing for me
Hotels and airlines don’t care about you
Before I start, I should clarify what I mean when I say that hotels and airlines “don’t care” about you.
I definitely think that individual hotels and airline employees (gate agents, concierges, etc.) do take a person’s elite status into account.
For instance, a Hilton Diamond is much more likely to get a complimentary room upgrade than someone without status. Of course, as an IHG Platinum, I can’t even seem to get breakfast (even when Platinum WAS top-tier). Similarly, when Delta is looking to upgrade passengers into business class, it’s going to be the top-tier Medallions that (generally) get those upgrades.
So on a day-to-day basis, yes, elite status can provide you benefits, and generally what those benefits are something that is determined when you get your status.
OH YEAH? WELL I’M TAKING MY LOYALTY TO…
But what I mean is that the higher-ups in the corporate offices that are in charge of loyalty programs don’t (really) care about you. They’re going to make decisions based on the predicted behavior of THOUSANDS if not MILLIONS of people, and you are nothing more than a bump in the road. Heck, View from the Wing was even reporting today about a rumored change to the promises United made to “lifetime million milers”, including the following exchange between two judges and United’s lawyers during a recent court case:
Judge Hamilton: To understand the difference between lifetime and fingers crossed? That lifetime doesn’t mean lifetime?
United: That lifetime means lifetime unless…
Judge Wood: Unless we change our mind.
Judge Hamilton: Unless we change our mind.
United: Yes, that’s exactly right. That’s the case.
Have you ever heard people saying things like:
“Hyatt devalued “my” Diamond status by giving it to everyone else? I’ll never stay again at Hyatt!”
“<Name of retail chain> just did <that one thing>? I’ll never shop there again!”
Ummm no. Actually you will. Or at least 95% of you will. You can pretend you’re one of the 5% that will sacrifice your own best interests to make a point that nobody will care about, but the reality is, you’re probably not.
See, there’s a reason that you chose to say, fly United or stay at Marriott. You did it because it was in your best interest. Maybe you live near a United hub, or Marriott has the best hotels for the location(s) where you frequently stay.
Now, that isn’t to say that it isn’t wise to periodically re-evaluate your airfare and lodging decisions, especially in light of new information, but let’s take Hyatt for an example. For every current Hyatt Diamond that stops staying at Hyatt because of the recent uptick in the number of elites, I bet there’s FIVE new Hyatt Diamonds that will be staying more and more with Hyatt. Now you can see why Hyatt might do something like that.
The concept of “Be your own elite” (BYOE)
Which brings me to the concept of “Be your own elite” (BYOE). I believe this was first introduced at the excellent (though now defunct?) Milenomics blog – Be your own elite in 2014. The concept is, instead of spending marginal dollars
The simple fact is that you should always be re-evaluating your decisions, and when you have elite status, that makes it harder to make a rational decision, because it’s very easy to get emotionally attached to a given airline / hotel chain.
Note that I’m talking mainly to casual / leisure travelers. People that are traveling a lot for business (usually on someone else’s dime) are playing by a different set of rules.
For everyone else, take a step back – think about the benefits that you get from your elite status, compared to what you might be able to get as a regular member (or with middling status from a credit card), and decide if it’s really worth it to you.
And it very well may be! Just don’t think that your “favorite” hotel or airline cares about you – they don’t!
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You hit the nail on the head. I’ve read all those flyertalk posts and can only chuckle on most of them.
First and for most, all the talk about “loyalty” is mostly a lot of nonsense. Most of the people are not loyal to the brand, they stay (or fly) with the brand because it is best for their self-interest. Loyalty come to play when you stay with the brand when your self-interest tells you to do otherwise (for the short run and the long run). I doubt there are many of the complainers that are true loyal to the brand, rather than acting to advance their own self interest.
Don’t get me wrong, there is nothing wrong with that. In fact, that what you always should do. But don’t bring the “loyalty” card where it does not belong.
The brands are making a business decision. The customers are making a business decision. The emotional layers of “loyalty” has nothing do with it. Of course, the brands are better at that then the customers (both because they have better knowledge, as well as no emotional part to the decision).
And in the end, like all use of status it only work if you actually stay at the brand (or fly the airline). Having a card for the sake of having a card has no value. True, in the Hyatt case there is a real competition for the DSU, but how real it is, is a different story (i.e., the potential versus the reality of usage are two different things completely).
Yup – that’s exactly what I think is going on. There are very few people who I think TRULY stay with a hotel (or fly an airline) when there are better alternatives out there.
Great point, and I loved the post on “A message to Hyatt Diamond whiners.” Airlines/Hotels certainly have created lifelong followers who purchase without consideration for $. Which is exactly their goal!
Seems counter-intuitive. I focus my travel with 3 companies: Delta, Hilton, and Starwood.
I have flown other airlines (UA, I’m looking at you) and started a status challenge earlier in the year. I abandoned it after ONE BC trip to China because the service and attitude absolutely sucked. That is a company that seems to go out of its way to pi$$ off their customers. On Delta I am treated well; they simply make my life easier. Do I get upset when they dilute the program by allowing all sorts of easy matches? Sure, but I seldom fly domestic so it does not bother me too much.
As for Hilton, it is a company thing, based on history of doing business in China. When I go to the Beijing Hilton, I automatically get upgraded to at least a room with executive lounge privileges, and sometimes get upgraded to very nice suites. And I am only Gold with them.
Similarly, as an SPG Gold, I get upgrades all the time when I can stay at one (I do not usually travel to exotic places), and the Crossover Rewards with Delta are a nice add on. But then again, that is Asia (currently in the Le Meridian Cyberport in Hong Kong).
I am always treated like a valuable customer. Once, I was a bit confused about the lounge perks with the AMEX Platinum (more than 10 years ago, I was a Platinum holder before they ever gave signup bonuses) and was denied entry (rightly, it turned out) to the KLM lounge in Amsterdam. I called AMEX from DTW to register a complaint; as I arrived at home, AMEX was on the line apologizing for the misunderstanding, and would I please not cancel (I had made no threat to cancel).
I realize these are anecdotes, but I believe that the level of service from these companies has deteriorated precisely because there are so many people earning points and miles for various programs without actually using the products. I am even guilty somewhat of that with the SPG program. But I stay when I can and pay good money rather than simply relying on freebies.
I disagree in part. I think many of those complaining would be business travellers that do earn status with actual stays, even if someone else is paying for it. I’m one of those and I can understand why they’re angry. If someone that’ll only stay once or twice gets an upgrade and I don’t just because he checked in before me I would be pretty pissed off.
And I would assume the hotel would rather keep someone that does upwards of 40 nights a year happy that someone just gaming the system.
And if you’re not paying for it out of your own pocket it’s very easy to switch. Pretty much everywhere you travel on business has good hotels in every chain. I’m a Hilton diamond and do over 60 nights a year. But if the benefits drop its easy for me to switch. I’ve always gotten an upgrade, free breakfast, priority when using points to book, etc. so I’m happy. The moment that changes I won’t have any issues going somewhere else. I’m loyal because I get a lot out of it.
Sometimes going out of your way to earn elite status (even if on your own dime) is in one’s self interest. For example, I regularly stay at Starwood hotels (even when a different choice might be better for a particular stay) in order to get the 25 stays required to re-qualify for Platinum each year. For me, the Platinum breakfast and upgrade benefits are worth the cost.
Am Spire Elite with IHG. Presently staying at Holiday Inn Resort in Pathong. .., the Status recognition and care is superb ..,
I am the type of customer that Hyatt was courting with the Diamond match- successfully! Now that I am receiving them, I value Hyatt Diamond perks high enough to channel enough of my stays to Hyatt properties in 2016 to allow me to earn Diamond status for 2017. A good business decision on their part, creating a win/win deal for many of us. (And I will not be complaining if others match via an easier process in 2016 for statue in 2017. I evaluate my financial decisions on what makes sense for my individual situation.)