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Hyatt faces criticism over denial of resort fee benefits during point redemptions

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Hyatt faces criticism over denial of resort fee benefits during point redemptions
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Airbus A380 | Airbus

Hilton and Hyatt do not charge resort fees when guests redeem points, with the points covering the stay. Marriott, however, began charging resort fees upon launching the Bonvoy program. This move was seen as an effort to appear to provide strong value while reducing costs for hotel owners.

Marriott can charge fewer points because these points do not cover the full cost of a hotel stay. Hotels receive less compensation for a 'free night' award from Marriott but offset this by charging guests resort fees.

Even when guests are not paying resort fees, they are still entitled to its benefits. Most resort fees list theoretical benefits such as discounts on services or classes that may not be utilized by guests. These lists create an impression of value, disguising the true room price and allowing hotels to increase costs post-booking.

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However, some benefits might be desirable, such as a $15 food and beverage credit designed to encourage spending on property. One reader shared his experience at the Hyatt Regency Seattle where he was denied this credit during an award stay because he did not pay the destination fee. The hotel stated that only Globalist members were eligible for such credits without paying the fee.

After reaching out to Hyatt's social team via Twitter, which then contacted the hotel, the guest received an apology and was granted the food and beverage credit as a "one-time gesture." However, the hotel's practice of denying destination fee benefits on award stays remained unchanged.

Hyatt compensates hotels for award stays through World of Hyatt by including all fees in their payments based on average room rates and occupancy levels. Globalist members do not pay resort fees even on paid stays; instead, Hyatt covers 50% of these fees contractually.

Resort fees often include minor discounts or credits that benefit hotels when guests spend more than allotted amounts. Denying these benefits to redemption guests is considered both a mistake and a scam since hotels are compensated for them and must provide equal benefits to all guests regardless of payment method.

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