Will Chase’s 5/24 Apply to the Hyatt Visa Soon?

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World of Hyatt Credit Card

I’m really thrilled by the relaunch of this card. It’s a big improvement over the original Hyatt card, offering a bigger initial points, faster points-earning, more free nights, and credit towards elite status both for having the card and for spending on it.

The World of Hyatt Credit Card has a limited-time offer of up to 60,000 points with this card. You earn 40,000 points after $3000 in spend on purchases in the first 3 months from account open and an additional 20,000 points if you spend $6000 total within the first 6 months.

And 60,000 points is enough for 2 free nights at any Hyatt hotel except for all-inclusive Miraval. (Or 12 nights at category 1 properties.)

The card earns:

  • 4 points per dollar Hyatt spend
  • 2 points per dollar restaurants; airline tickets purchased through the airline; fitness club and gym memberships; local transit and commuting including ride share services
  • 1 point per dollar other purchases


Park Hyatt New York

You get both a free category 1-4 night each year at card renewal and an additional free night at a category 1-4 Hyatt property after spending $15,000 in a cardmember anniversary year. That makes putting $15,000 annual spend on the card attractive.

I’ve got my new Hyatt credit card and it’s great. It’s also a card that many more people can get than several other Chase rewards cards because all reports to date are that Chase’s 5/24 rules do not apply. There are many cards Chase will only approve if you’ve opened fewer than 5 new accounts in the last 24 months. That hasn’t been part of the approval path for this card.

At the launch for the World of Hyatt Credit Card Chase’s President of co-brand cards told me (and this got picked up in many places) that we should expect 5/24 to roll out eventually to this card and across the rest of their portfolio, too.

However an executive familiar with Chase’s thinking tells me that this card isn’t likely to see 5/24 any time soon. While it’s a great card, the market for it is narrow.

  • Hyatt only has 1/10th the number of hotel properties as Marriott
  • It’s great for Hyatt loyalists, and especially those who value Hyatt status — which is an even smaller pool.

The way he put it is if 5/24 applied they wouldn’t get any cardmembers.

There are real challenges with 5/24. A United Global Services member or a Marriott Ambassador — each travel brand’s very best and most lucrative customers — will get turned down for the card because they’ve applied for other credit cards. That’s terrible for the relationship.

In this case if you eliminate a chunk of Hyatt’s best customers from the card product you don’t have nearly the remaining market that you have for a United or a Marriott. That’s why, at a minimum, it’s important to create a period of time where approvals aren’t so limited.

World of Hyatt Credit Card

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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Comments

  1. That’s really interesting. The “conventional wisdom” has been the 5/24 is a pretty good filter because the vast majority of non (churners/gamers/etc) don’t even think about getting 5 credit cards in a 2 year period. But when you shrink it down to the pool of Hyatt loyalists, you are getting higher income, bigger travel, etc. So it’s much easier to imagine a good amount of those people getting a Delta card, AA card, United card, maybe a premium Amex card and one other, all in a 2 year period. Much more likely than the “average Joe”.

  2. I agree, the most interesting part of this post is Chase’s articulation of the drawbacks of 5/24. I assumed other banks that hadn’t implemented a cross-issuer gating rule like 5/24 were unsophisticated or lazy; now I wonder if they’re making an informed decision.

    This is also the first credible statement I’ve seen that implies 5/24 might not be sustainable.

    Clearly a customer who’s at LOL/24 is not going to be profitable, but I wonder what the profitability histogram looks like for people who are 4, 5, 6, 7, etc./24…?

  3. I’m 18/24 but I will say that some of the cards I have had were probably getting close to breakeven due to all the of spending we put on the cards beyond the minimum. They probably need $20k or so to breakeven on the better bonuses and that amount has gone on several of the cards before closing. Have also renewed several in year 2 with high fees. Granted most I’m sure are not profitable.

  4. I always looked at 5/24 as a strategy for them to prevent against losses/risk. The thinking might be people that get alot of cards may be looking to run. No matter Chase is running after the same coveted customers as the other premium cards like AMEX. One thing continues to amaze me is how little effort BOA puts into these products (my assessment)

  5. Unsophisticated or lazy? Oh no. Banks put a lot of thought into their products all the time. It is, after all, how they make their money.

    5/24 really is too strict; it weeds out a lot of people who are NOT churners.

    I’m sure Chase weighed what they were losing versus what they were gaining and decided that they should come out ahead overall, but I’m not totally convinced that they actually DO come out ahead.

    The very best, most intelligent rule belongs to Amex: Once per lifetime. You get to “taste” any product once, and once only. If it’s not for you, well, so be it… but you won’t get the bonus a second time. That’s more than fair to everybody. Non-churners generally don’t need a second shot: they either found value in the card or they didn’t. (Of course, there could be the occasional person whose life circumstances changed enough that a product that wasn’t valuable once upon a time is valuable now. But those are rare, and anyway, they DID get the bonus once, so it’s still fair. It’s somewhat less fair if the product undergoes a revamp, but such is life.)

    And the best part is, while being fair and not excluding people they probably want, it does very effectively put a lid on churners. Once you’ve burned through all the Amex cards, you’re done, and you can’t do it again.

    Of course, Amex limits people to a maximum number of products, which is probably self-defeating in its own right. I could very easily envision someone who wants to have and keep six or seven Amex cards, because those cards just happen to work for that person. This would be especially true if Amex got a few more brands, or if Amex decided to expand the total number of available Membership Rewards cards (and the new cards were worth having).

  6. I personally don’t mind the 5/24 since I’m not a churner, I’m currently at 3/24 (and one of those was the Hyatt card I just got in July) and I’m not in a rush to apply for another card anytime soon. The Hyatt card is a great card because it’s the only hotel credit card where the annual fee pays for itself with little to no work. I feel as if the other hotel cards make you work a lot harder to find a hotel that will cover the fee and make it worth your while (your essentially paying the annual fee upfront and then redeeming the hotel night later). I can’t think of a single Hyatt that sells for under $95 a night (much less a category 4). I’m going to keep this card going forward as long as the benefits stay where they are.

    https://www.referyourchasecard.com/205/1CARBWYQKM

  7. I got a Hyatt card in December 2016 followed by its bonus points shortly thereafter. Would I be approved for the new World of Hyatt card and be eligible to receive points for it as well?

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