Why Are Hotel and Airline Points Worth Less in 2026?

If your travel points feel like they buy less than they did a year ago, that is not your imagination. This year has already brought devaluations at several major hotel and airline loyalty programs, and the pace is not slowing.

What happened at Hyatt in May

World of Hyatt had long been the exception: a program with a published award chart and reliably high value per point. On May 20, 2026, Hyatt expanded that chart from three pricing tiers (Off-Peak, Standard, Peak) to five (Lowest, Low, Moderate, Upper, Top), applying to all bookings made on or after that date.

The practical effect is that top-end properties that used to cost 45,000 points per night can now run 75,000 points, an increase of about 67 percent. Independent valuations moved quickly: one widely cited estimate dropped Hyatt points from 1.65 cents each to 1.55 cents between May and June.

The bigger pattern: dynamic pricing everywhere

The Hyatt change is part of a broader shift away from fixed award charts entirely:

• Lufthansa Group airlines moved Miles & More redemptions to dynamic pricing in 2025.

• Air Canada began dynamically pricing certain partner awards, and Aeroplan's June 2026 award chart update raised prices on some of its best long-haul business class redemptions.

• Delta has said it plans to expand its use of AI to set cash fares, and its SkyMiles award prices are already dynamic.

• On the transfer side, Chase cut the Sapphire Preferred's Ultimate Rewards to Hyatt ratio from 1:1 to 4:3 as part of the June 2026 refresh (Sapphire Reserve keeps 1:1), so the same Hyatt room can also cost more Chase points.

When awards are priced dynamically, the program can devalue continuously and invisibly. There is no announcement to react to, which removes the traditional warning period savvy travelers used to book ahead of a change.

Flexible currencies and award pricing

• Chase Ultimate Rewards, Amex Membership Rewards, and Capital One miles transfer to many partners. Points earned directly with a single hotel or airline are exposed to that one program devaluing.

• Dynamic pricing sometimes creates bargains too, especially on off-peak dates.

Hyatt transfer deadlines and cash-back comparisons

• Existing Sapphire Preferred cardholders keep the 1:1 Hyatt transfer ratio until October 1, 2026 (Sapphire Reserve is unaffected). Transfers completed before then preserve it. Transfers to Hyatt are one way.

• If you redeem points at ordinary rates and travel once or twice a year, a flat 2 percent cash back card may beat a points card after fees, with zero devaluation risk.

• Dynamic pricing tends to punish last-minute high-demand bookings hardest.