American Airlines & Hyatt Partnership Changes

There are some new American Airlines & Hyatt partnership changes that were announced today and kick off in 2025. I think most will look at this as a negative change overall. I do think that the level of integration between the two brands is pretty impressive. It is something Southwest … and pretty much any hotel chain could never pull off. Having said that, the implementation could have been a lot better if they were looking to offer value. I guess it shouldn't be surprising, since they get into these partnerships to increase their bottom lines. I wonder if this also means it is an end to their status matches back and forth.

Easy Points Are Going Away

The reason these American Airlines & Hyatt partnership changes are a negative overall is because what they take away. They are removing the opportunity to earn bonus points in each other's programs starting in 2025. The current set up is as follows:

• American Airlines elites earned 1 AAdvantage mile per dollar spent on Hyatt stays. You must have one of the following status levels.
  • Gold
  • Platinum
  • Platinum Pro
  • Executive Platinum
• World of Hyatt elites earned 1 Hyatt point per dollar spend on American Airlines flights. You must have one of the following status levels.
  • Discoverist
  • Explorist
  • Globalist

If you never had status in either program, then this doesn't really matter to you. You likely had some kind of status in one or the other if you are reading this, even if it was just Discoverist status from the World of Hyatt credit card. This eliminates an extra 1.5% – 2% in return on our flight or hotel bookings.

Weird Partnership Redemptions Replace Bonus Points Earning

What is replacing the bonus points with these American Airlines & Hyatt partnership changes then? A weird reciprocity of redemptions based on earning. This is kind of cool on the surface, at least when considering the fact that they can even pull it off. Once you dive even an inch in theses frigid waters though, you realize that there is no value to be had.

What this new partnership setup will do is let you redeem points in the other program for perks specific to the airline of hotel program or gives you more options based on your elite status perks. Let's take a look at each, which will start at various times in 2025.

World of Hyatt -> American Airlines

Here is what World of Hyatt members will see added to their Milestone Rewards options at various elite nights levels. These “perks” (redemptions) are unlocked after so many elite nights are reached (starting 1/1/25).

• 20 / 30 World of Hyatt Elite Nights
  • 2 Preferred seat coupons on American Airlines flights
• 40 / 50 World of Hyatt Elite Nights
  • 2 Main cabin extra seat coupons
• 70 / 80 / 90 World of Hyatt Elite Nights
  • AAdvantage Gold status
• 100 World of Hyatt elite nights
  • AAdvantage Platinum status

I don't really see any of these being the best Milestone Reward option at those levels. You will likely be giving up points or suite upgrade awards to get anything of minimal value here. That just doesn't compare for most people.

Status For A Day

On top of that, World of Hyatt Explorist and Globalist members will be able to redeem points for the following status for a day perks. These can be gifted to other members too, where the options listed above can not.

• AAdvantage Gold status
  • 5,000 World of Hyatt points
• AAdvantage Platinum status
  • 8,000 World of Hyatt points
• AAdvantage Platinum Pro
  • 12,000 World of Hyatt points

I don't like this option since there are no guarantees with these status levels. I guess you could somewhat guarantee a main cabin extra seat as a Platinum Pro (if they are still available), but I don't feel like that is worth 12,000 points for most.

American Airlines -> World of Hyatt

Just like the World of Hyatt Milestone Rewards getting new redemption options at certain levels, American Airlines frequent flyers will have new Loyalty Points reward options. These would be instead of the other (more valuable) options that American Airlines elites already get at each level (starts 3/1/25):

• 100,000 American Airlines Loyalty Points
  • World of Hyatt Discoverist status
• 175,000 / 250,000 American Airlines Loyalty Points
  • World of Hyatt Explorist status
• 400,000 / 550,000 / 750,000 American Airlines Loyalty Points
  • World of Hyatt category 1-4 free night certificate
• 1,000,000 / 3,000,000 / 5,000,000 American Airlines Loyalty Points
  • World of Hyatt category 1-7 free night certificate

At the lower levels of loyalty points earning, the World of Hyatt status isn't worth much because the Milestone Rewards were broken out from the actual levels of status and the elite nights what is important.

At the higher levels of loyalty points earning, people are going to want to select systemwide upgrades or something along those lines. Even at the 400K+ level with American you would be forgoing 25,000 miles for the category 1-4 free night certificate as your second choice. That looks more like a wash than anything, unless a high room rate dictated it as an option.

Cashing In American Airlines Miles For Free Nights

Here are the options that some American Airlines frequent flyers will have the option to redeem their miles towards (starting 1/2/25):

• 40,000 American Airlines Loyalty Points
  • Redeem 25,000 miles for a Hyatt category 1-4 free night certificate
• 125,000 American Airlines Loyalty Points
  • Redeem 65,000 miles for a Hyatt category 1-7 free night certificate

Unless you are stocked up on American Airlines miles, AND you have a super expensive hotel booking upcoming, this is a bad deal.

American Airlines & Hyatt Partnership Changes: ToP Thoughts

While I think these American Airlines & Hyatt partnership changes are creative, they just don't offer us much value. There could be some limited times where there is plus value to be had, but it will be rare for most. If they had just added these options, but kept the bonus points earning in place, then it really wouldn't have mattered. The big remaining question is whether or not the status matches the two programs offer every year are done as well.

Let me know your thoughts over in the ToP Facebook Group.

HT: OMaaT