Basic economy, hotel edition: This luxury hotel wants you to pay up to access the pool and gym
Prior to the pandemic, "unbundling" was one of the biggest buzz words in the airline industry.
Unbundled fares typically just include a seat and little else, with each optional amenity (seat selection, checked bag, etc.) an additional cost a passenger can choose. Ultra-low-cost-carriers such as Spirit have always unbundled fares but in recent years, major airlines followed suit with basic economy. Even some business class products are now going the way of unbundling.
Now, imagine something similar -- but for hotels. As first reported by Milelion, this Andaz in Singapore seems to be repurposing the unbundling scheme for the hotel world.
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The 'room only' rate
The Andaz Singapore is a luxury, five-star property near Singapore’s famous Marina Bay at the intersection of the city’s Kampong Glam, Little India and Bras Basah Bugis districts.
Amenities include a 25th-story rooftop pool with sweeping views and a state-of-the-art fitness center. During the pandemic to ensure appropriate social distancing, both are open but require reservations (for the pool) and a special access keycard (for the gym).
However, both of those amenities are off-limits if you book the lowest "room only" rate in December through Klook, a popular Hong Kong-based online travel and activities agency.
Yes, that means you can stay in the room -- but won't have access to the hotel's prominent public spaces including the gym and pool.
Here's the exact verbage from Klook about what's included in this unbundled room:
Room Only Package: Kindly note that this package is only entitled to a 1-Night Stay in a King Bed / Twin Bed Room with in-room minibar, once per stay and all day refreshments at Sunroom on Level 25. This package does not include Breakfast, Swimming Pool Access and Gym Access
The rate further states that the gym and pool are already fully reserved for the month of December, hence the restrictions. However, as Milelion notes, this isn't the case as bookings for both amenities are still available as of this writing.
This is the first instance I have seen of a room rate at a full service, premium hotel that didn't include specific on-property amenities that you'd typically be eligible for.
Related: 3 ways to do Singapore on points
Does this signal anything about the future of hotel pricing?
With just one example to note, probably not. But this shows the possibility that properties may pilot similar pricing schemes to maximize revenue at a time when travel demand is low.
In this instance, the gym and pool have little added cost to a hotel for an additional guest. But if implemented correctly, hotels can incentivize a potential guest to "upgrade" to a rate that does include those amenities, for example.
After all, that's how basic economy has been marketed by airlines thus far. Carriers don't necessarily want you to be booking basic economy -- what they want is for you to pay more for the privilege of a standard economy ticket.
That's why you see messages that are so clearly skewed to upgrading during the booking process, such as this below:
Related: The best cities for first-time visitors to Asia
Bottom line
The Andaz Singapore seems to be testing a "room-only" rate through a third-party channel. While we don't know the future of hotel pricing, in the current environment of limited travel, I wouldn't be surprised to see other creative solutions to spur more bookings.
We reached out to Hyatt for comment and will update this story should we get more information.
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| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
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Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.