Compensation Clinic: Hyatt Prive $100 Hotel Credit Not Properly Converted (Exchange Rate Off By 7%)

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Our Compensation Clinic this Sunday is about a recent stay I had in Bangkok under the Hyatt Prive rate which is being booked through a Hyatt travel advisor and comes with a US$100 hotel credit.

Unfortunately this $100 credit is being converted to local currency based on the hotels own exchange rate which might not be reflective of the actual market rates.

When I stayed at Grand Hyatt Bangkok the other day I got my final folio and immediately noticed that the amount in Thai Baht reflected as property credit for Prive seems extraordinarily low:

100 USD are 3,032 Thai Baht as per XE, a difference of 232 Baht or $7,65 to the 2,800 Baht listed.

Basically the exchange rate of the hotel is off by 7.65% which is pretty significant and obviously I didn’t accept this conversation.

The front desk manager then corrected the credit according to a realistic rate.

2,800 sounds like a number that is too even to be quoted by mistake. My suspicion is that it’s posted like this on purpose because it sounds nice and rounded.

Maybe it would be a good approach being more honest with the quote and give 3,000 Baht which is still slightly under the actual rate but within a margin or error I would let slide. Anything above 1% will be claimed as far as I’m concerned.

Conclusion

Hotels should really use realistic exchange rates instead of only updating them every now and then. Sometimes hotels also manipulate exchanges rates purposely in order to siphon additional funds off the bill upon checkout. Pair this with the ongoing scam of Dynamic Currency Conversion based on the form of payment (credit card) of which the hotel also gets a good cut then this is a whole business in itself that could add a whole 10% to the properties profit margin.

Every time you see something like this you should reject it outright and always charge in local currency when using the credit card or ATM.

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