Luxury Hotels Gone Hourly?

The recent Coronavirus lockdowns around the world have wreaked severe havoc to the hotel industry and many business analysts would agree that a large number of hotels may never reopen their doors again. Therefore, many hotels have had to come up with creative ways of making money. For example, Marriott has recently announced that they are selling gift cards for future use at a 20% discount. With the lifting of lockdowns in many cities around the world, hotels have started to promote local tourism activities by offering heavily discounted rates to local citizens too. It is times like these that the expertise of a highly capable revenue manager is imperative.

InterContinental Kuala Lumpur seem to have come up with an extremely ingenious idea. Lockdowns in Malaysia have just been lifted although intrastate and international travel is still prohibited so the hotel has come up with this offer, which if my maths serves me well, make absolutely no commercial sense!

The “Reignite & Refresh” rates starts at MYR249 (USD57) for a stay of up to four hours. Additional hours are charged at MYR50 (USD11) per hour. The “In The New” rate starts at MYR349 (USD80) per night inclusive of breakfast. If one were to stay for six hours, they might as well book the overnight rate and get a free meal as well! Oh, by the way, the overnight stay includes late check-out too! All the more reason why I say that these rates make no commercial sense because an overnight stay of more than 24-hours (assuming one checks-in at 2pm and leaves at 4pm the next day) would cost less than a stay of six or so hours!

With state borders still closed and Kuala Lumpur being a not-so-big city from one end to the other, I am not quite sure who the hotel is targeting unless it really does have a seedy undertone to it.

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Andrew is a self-confessed guru when it comes to frequent flyer programmes. He claims that he is more familiar of the terms & conditions than the one who came up with the terms & conditions. His dream is to be able to feast on cookies day and night without getting fat.