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.
For more TPG news, deals and credit card tips delivered each morning to your inbox, subscribe to our daily newsletter.
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.
TPG featured card
at Bilt's secure site
Terms & restrictions apply. See rates & fees.
| 1X | Earn up to 1X points on rent and mortgage payments with no transaction fee |
| 2X | Earn 2X points + 4% back in Bilt Cash on everyday purchases |
Pros
- Unlimited up to 1 Bilt Point per dollar spent on rent and mortgage payments
- Elevated everyday earnings with both Bilt Points and Bilt Cash
- $400 Bilt Travel Portal hotel credit per year (up to $200 biannually)
- $200 Bilt Cash annually
- Priority Pass membership
- No foreign transaction fees
Cons
- Moderate annual fee
- Housing payments may include transaction fees, depending on the payment method
- Designed primarily for members seeking a premium, all-in-one card
- Earn points on housing with no transaction fee
- Choose to earn 4% back in Bilt Cash on everyday spend. Use Bilt Cash to unlock point earnings on rent and mortgage payments with no transaction fee, up to 1X.
- 2X points on everyday spend
- $400 Bilt Travel Hotel credit. Applied twice a year, as $200 statement credits, for qualifying Bilt Travel Portal hotel bookings.
- $200 Bilt Cash (awarded annually). At the end of each calendar year, any Bilt Cash balance over $100 will expire.
- Welcome bonus (subject to approval): 50,000 Bilt Points + Gold Status after spending $4,000 on everyday purchases in the first 3 months + $300 of Bilt Cash.
- Priority Pass ($469/year value). See Guide to Benefits.
- Bilt Point redemptions include airlines, hotels, future rent and mortgage payments, Lyft rides, statement credits, student loan balances, a down payment on a home, and more.