No question about it – industries the world over are being hammered by the effects of the coronavirus. Many smart business owners/managers have been pivoting to help deal with the falling revenue. In fact, if some businesses don’t innovate with new approaches, they may not make it through. Enter the hotel “bond” program – where you can buy credit now that will be worth 50% more later.
The Hotel “Bond” Program with Buy Now, Stay Later
Link: Buy Now, Stay Later
Even hotels that are part of national chains are facing the struggle of dealing with their fiscal responsibilities while guests are all staying at home instead of hotels. Starting with the London House in Chicago (a Hilton property), there is a new program now called Buy Now, Stay Later where a number of hotels are working with a bond type of program.
How Does the Hotel Bond Program Work?
It works like this – pay in increments of $100 now and in 60 days, that value of the bond will mature to $150 for stay later. This can be almost a no-brainer for some properties since many people will not be traveling within the next 60 days anyway.
Is It Good?
There are some restrictions involved but organizers say they are not having that many as they want to make it work for customers later while the hotels get the cash they need now. To purchase these “bonds” you simply visit the link above and click on the hotel you want. Each link is for a direct e-mail to that hotel to get the terms and information about the bonds.
Of course, the only wildcard (besides if the hotel will still be in operation – so good to choose a more well-established hotel) is what hotel prices are later. I think that many hotels will definitely still be pricing at normal levels if not lower as they try to bring guests back in. But, if prices are up, you may find yourself paying closer to that initial buy-in cost.
Still, it is nice to see hotels coming up with ways to get the cash they need now and rewarding those customers who end up staying later. Some market innovation like this is going to be necessary for some businesses. Well done to these hotels for going this route.
Here is some of the information from the website:
What is a hotel bond?
Similar to a treasury bond, guests can purchase a “hotel bond” directly from their hotel of choice for $100. After a 60 day maturation, that $100 bond will be worth $150. Guests can purchase multiple bonds for each hotel. For example, purchasing five $100 bonds will be worth $750 for when guests decide to book a stay at that hotel. Terms and restrictions apply per hotel.
Where can I purchase this online?
Click the link next to the hotel or follow instructions to contact the hotel via phone / email.
How do I know if a hotel is participating?
We will continue to update the list based on hotel participation.
When can I redeem this hotel bond?
Please check with the hotel for any specific terms and conditions.
HT: Chicago Tribune