Hotelier Hyatt Hotels Corp. (H - Snapshot Report) and casino-resort operator MGM Resorts International (MGM - Analyst Report) recently formed a pact to reinvigorate their loyalty programs. This strategic alliance will serve members of their respective loyalty programs – Hyatt Gold Passport and MGM Resorts’ M life program.
Per the deal, from Jun 20 onward, members of the Hyatt Gold Passport program will be able to gain and redeem Hyatt Gold Passport points at 12 participating MGM Resorts in Las Vegas. Similarly, M life members will win M life Tier Credits during their stay at Hyatt resorts and hotels worldwide.
At present, the joint venture is deemed to be the largest loyalty program initiative in Las Vegas integrating Hyatt’s 450 hotels and resorts worldwide and MGM Resorts’ 12 renowned properties.
We believe the deal is strategically positive, as the Las Vegas Strip is an important destination for travelers. Members of the Hyatt loyal program can enjoy an extended benefit at exceptional MGM resorts like Bellagio, MGM Grand, Aria and Mandalay Bay. Likewise, M Life members can also make the most of their stay at high-end Hyatt properties.
Hotel companies across the globe have been diligently working on every possible option to augment guest satisfaction and stay competitive over the last couple of years. Amid the prevailing environment where travelers spend less enthusiastically on lodging and seek incentives for doing so, hoteliers are frequently coming up with such programs to boost sales.
Apart from Hyatt and MGM, many other hoteliers including Starwood Hotels & Resorts Worldwide Inc. (HOT - Analyst Report) and Wyndham Worldwide Corp. (WYN - Analyst Report) also have such programs in place namely Starwood Preferred Guest and Wyndham Rewards.
Hyatt currently carries a Zacks Rank #3 (Hold) while MGM retains a Zacks Rank #2 (Buy).