View From The Wing notes that Hyatt has been franchising more and more to grow their footprint in the last few years. This means Hyatt isn't managing the properties itself. Instead, hotel owners are hiring hotel management companies to run the show.
As we've seen at Marriott and Hilton properties, this often leads to service standards not being met and properties failing to deliver on promised elite status benefits. VFTW notes that Hyatt has traditionally been a more high-end brand than either of those and falling short on service standards poses a risk for Hyatt.
"The trick is offering more than a place to sleep, eat and shower – it’s offering guests an overall experience, helping them tell stories not just about their stays but about themselves, and making their lives fuller when they’re away. That’s also why cutbacks on things like housekeeping make no sense at the premium end, while some guests say ‘I re-use towels at home’ or ‘I don’t make my bed every day’ that misses the point. This is all part of the experience that is more than the sum of each feature, that guests will pay more for and why they choose a premium property over a short-term rental."
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