COVID-19: What counts as a good hotel deal?

You may have noticed countless hotel deals in recent weeks as luxury properties all over the world try to stay afloat with some cash flow injections from prepaid hotel reservations. While it is tempting to book every one of them at 30-50% off, it is advisable to take a step back with a reality check.

Your hotel stay experience will be different

I’m not gonna pretend like I am an expert in predicting the end of COVID-19 but I simply do not see buffet spreads resuming in the next 12 months. Activities arranged by the property (like snorkeling or gym classes) will also be affected. What about swimming pool usage? What about spas? What will happen to executive lounges?

Hotel voucher validity period

The trend among hotels right now is to offer prepaid vouchers with free date changes up till end-2020 or mid-2021. Is that far enough ahead? Not for me.

No refunds

A lot of these vouchers are being sold without any refund policies if the COVID-19 situation gets worse. Because these vouchers are purchased directly from the hotels, you will have to count on an unlikely goodwill move for a refund. It is more likely that you will receive an extension of the validity period of the voucher.

Not all countries are doing enough

It is very obvious which hotels are the most desperate for your money right now. They are those in Bali, Indonesia. That makes sense as Bali a very popular tourist destination and is the most hard-hit by the current situation. Bali is also over-saturated with hotels/villas. A lot of these properties are already very cheap, even on high tourist seasons before COVID-19.

While countries like Iceland and UAE have tested over 20% of their entire population, Indonesia, the country with the 4th highest population in the world, has only officially tested a mere 0.1%. Again, I am no expert but you don’t need to be one to see what’s wrong here.

As countries begin to discuss about travel bubbles and green lanes, high-risk countries will be left behind. Even if Singapore forms a green lane with say, Australia, there is a very high chance that you will be denied entry if you have recent travel history to a high-risk country. No country will be willing to risk another couple of months of lock down after all the hard work.

Indonesia is NOT ready and can only be saved with a vaccine.

So, what’s a good hotel deal?

Before I consider paying for a future hotel stay, I will ask myself the following questions:

• Is it from a high-risk country?

• Is the validity period at least until end of 2021?

• How much will I be saving from the usual prepaid rate?

• Does it offer free refund?

Examples of good hotel deals

1. Marriott gift cards at 20% off. Valid at over 6,700 hotels worldwide. No expiry. (Deal ended)

2. Bayan Tree gift certificates at up to 78% off. Validity till Dec 2021. (Deal ended)

Examples of bad hotel deals

1. 60% off Alila Ubud. Stay by Dec 2020.

2. 60% off Conrad Bali. Stay by Dec 2021. No Hilton points.

3. 30% extra value on Anantara gift cards. 12 months validity. Can only use in one transaction.

4. Any Indonesian hotel with promo code BOG on marriott.com.

Conclusion

As eager as we are to travel again, it is worth understanding that hotels are more desperate for your money now, more than ever. These “hotel deals” will not be going away any time soon and it’s good to look at the big picture before giving anyone your money. Times are bad when you can stay in a Ritz-Carlton for only S$100.