Hyatt Hotels Corporation (H - Free Report) , in partnership with JPMorgan Chase & Co.’s (JPM - Free Report) Chase card services, has announced the debut of the World of Hyatt Credit Card. The credit card is expected to ease everyday purchase of travelers with greater rewards for members.
The new card will promptly elevate customers’ status, aiding them to earn free nights at Hyatt destinations. Additionally, the card will provide added facilities in terms of points gain across services.
We observe that Hyatt’s shares have rallied 36.1% over the past year, outperforming the industry’s 12.7% collective rally.
Let’s discuss the rationale behind the enhancement of World of Hyatt and its prospects.
Loyalty Program Eyes Top-Line Growth, Fends Off Competition
Successful innovation has been a trademark of Hyatt, with commitment of customer-friendly services in both the large-scale convention and smaller leisure markets. By enriching loyalty program with the introduction of credit card facilities, Hyatt is trying to facilitate greater guest engagement that would eventually raise occupancy.
The company has been devising newer ways to enhance the guest loyalty program. In fact, it is already witnessing a higher level of guest satisfaction due to the enhancement of World of Hyatt. As of Dec 31, 2017, the loyalty program had more than 10 million active members. During 2017, approximately 30% of total system-wide room nights were favored by the program.
Hyatt believes that enhanced guest experience should favor top-line growth. The company is trying to facilitate revenue per available room (RevPAR) growth by offering enriched services to guests, which has thereby generated substantial demand. With the introduction of Hyatt’s unique services that involve engaging more customers, the company is successfully navigating the tough economic environment, plagued with intense competition. The company has a creative approach to food and beverage at its hotels worldwide, and created profitable and popular venues that build and enhance demand for hotel properties.
Strategies to engage customers therefore should help the company increase market share, thus boosting business. We believe that the strategies are part of Hyatt’s plan to leapfrog competitors like Marriott (MAR - Free Report) and Hilton (HLT - Free Report) in the race to gain greater market share.
Currently, Hyatt carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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