Hotels & airlines offering book now travel later deals. Here's what you need to know before buying.

Soft truths to keep Singapore from stalling.

Jason Fan | June 07, 2020, 01:14 PM

COMMENTARY: The travel industry is offering plenty of deals in preparation for travel to resume in a post-Covid-19 world. Here's what you need to take note of if you are considering purchasing such deals.


Travel may not be on most people's minds right now, given how there seems to be no clear end in sight for the ongoing Covid-19 pandemic.

After all, it's hard to get excited about that beach holiday you're so desperately craving, if you have no idea when that would be.

For companies in the travel industry hard-hit by the Covid-19 pandemic, many are trying to get the average consumer excited about travelling again.

In order to attract would-be travellers, these companies are resorting to offering a slew of travel deals that would normally be considered too good to be true in normal circumstances.

Book now, travel later

To combat historically low occupancy rates, many hotels now offer "book now, travel later" deals.

After all, they know that people would eventually begin travelling again, but when that would be differs for each person.

By offering steep discounts, hotels will be able to get money in their pockets now, at very little cost, given how rooms are mostly empty during the pandemic.

And these deals can be excellent.

In April, Banyan Tree, which runs a number of luxurious hotels and resorts mainly in Asia Pacific, ran a gift certificate sale, offering travel packages for up to 78 per cent off.

These packages not only included a steep discount off the usual room rate, but also threw in attractive freebies, such as massages and complimentary dinner.

Marriott International, which has over 7,000 hotels under its umbrella worldwide, took a different approach by selling gift cards at 20 per cent off.

Even individual hotels have released their own deals, hoping to stand out among the competition.

The Conrad Bali, which is a five-star luxury hotel, offered room rates starting from S$131 per night, with a minimum of two nights booked.

And there are plenty more of such deals to be found online, should one be interested.

Airlines are now offering flexible tickets

Airlines are also getting into the "book now, travel later" game, although in a different way.

It is more difficult for airlines to commit to steep discounts, given the razor-thin margins that many airlines operate on.

The situation is also more uncertain for airlines, given how it is uncertain where the respective airlines are allowed to fly to, even just a few months from now.

Hence, many airlines are seeking to entice future travel by promising unheard-of levels of flexibility on their tickets.

While most discounted tickets are normally non-refundable, with changes allowed for a fee, many airlines have had to promise complimentary booking, in order to assure customers.

After all, the public is unlikely to be queuing up to buy tickets for a winter trip to Tokyo, if they can't be sure whether the route can even be operated, or whether government restrictions would be lifted by then.

For example, Singapore Airlines (SIA) offers complimentary rebooking for all new bookings made by June 30, 2020, regardless of fare type.

You can make unlimited rebookings with all change fees waived before June 30, and customers will be given a one-time complimentary rebooking after June 30.

This allows customers to buy tickets from SIA with a peace of mind.

Qatar Airways goes even further, by not only allowing unlimited date changes, but also allowing passengers the flexibility to change their destination if it is within a 5,000 mile (8,047km) distance of their original destination.

Which is an incredibly ridiculous radius, if you think about it: This means that one can book a trip from Singapore to London on Qatar Airways, and change the ticket to Singapore to New York instead, at no extra charge.

Customers are basically given the flexibility to change both their travel dates and destinations at will, which goes a long way for anyone trying to book a trip during such uncertain times.

Yes, but are these deals really worth buying now?

It is important to read the fine print before committing to any of these deals, in order to avoid getting yourselves burnt trying to snag a good deal.

How much are you actually saving?

Do your research on how much you're actually saving on these deals, in order to avoid a situation where you commit to a trip six months later just to save a few bucks.

For example, the Banyan Tree promotion mentioned earlier may seem very impressive, offering up to 78 per cent off their travel packages.

However, if you were intending to travel to any of these resorts during off-peak season, you may find that you will not save anywhere close to the stated amount.

Also, given that the 78 per cent saved is based on a two-night package, which includes certain add-ons such as dinner or massages, you may save even less if you were not intending to dine in at the hotel in the first place, or did not want a massage.

When do the deals expire?

The flexibility provided by the deals is also equally important.

Many hotels are offering pre-paid packages requiring you to stay by the end of 2021, which is reasonable.

However, if you chance upon some of the deals which require you to commit to travelling by the end of the year, you might want to be wary, as non-essential travel may not resume by the end of 2020.

Most of these deals are non-refundable, with some exceptions, so it is vital to check when the travel-by date is.

How much flexibility does the deal offer?

In general, the more flexibility these deals can offer, the better. But not all deals are equally flexible.

After all, there is still no indication that non-essential travel would be allowed out of Singapore in the near future, and your stay would also depend on whether your destination would allow foreign tourists into the country at your desired time of travel.

There are simply too many variables, and it can be foolhardy to be locked in to a trip that might cause you more stress than relief.

Once again, it is important to examine the small details when looking at these deals.

For example, while SIA and Qatar Airways both claim to offer flexible tickets, the latter's terms are more generous by far, as it allows one to change their destination as well.

Apart from offering a full refund, Qatar Airways also offers customers the option to swap their ticket for miles, or to exchange the ticket for a travel voucher with 10 per cent additional value, valid for two years.

Yes, this means that if you wish, you can buy as many Qatar Airways tickets as you wish, cancel them, and get 10 per cent extra travel credit on the airline for the next two years.

Assuming, of course, that you trust the airline not to run away with your money, or to simply be bankrupt before you can use any of it.

Some deals are 'safer' than others. Be clear on the risk you're comfortable with.

As the saying goes, there can be no reward without risk, and this is a perfect example of this.

You may pre-purchase a travel package at a resort, simply for the hotel to go out of business before you manage to travel. The same goes for buying air tickets from any airline.

Hence, it might be prudent for one to not only consider which deals are the best, but to actively seek out the safest deals as well.

For example, while the previously-mentioned Marriott gift card deal may not seem the most enticing, given that it's a mere 20 per cent off future stays, it is arguably safer than most other options, given the circumstances.

The gift vouchers can be used at any of the chain's 7,000 hotels worldwide, and the credit does not expire.

Given that the company is one of the largest hotel chains in the world, it is safe to say that you should find at least some kind of use for your gift voucher in the future, compared to a travel package purchased from an individual hotel.

With airlines, it is a similar story.

Prominent airlines such as Virgin Atlantic, South African Airways and Thai Airways are facing financial difficulty at the moment, and the situation is unlikely to improve in the short run.

Consider carefully where you wish to park your money, given how a travel credit in a defunct airline is essentially useless.

Adjust your expectations

Even if you manage to snag one of these deals, and travel to your intended destination without incident, your experience may be less than ideal.

Flight attendants are unlikely to be able to provide the same level of service as you may be accustomed to, given how they must adhere to social distancing regulations.

Airline catering would be cut as well, as airlines aim to reduce interaction between passengers and the flight crew as much as possible.

Social distancing measures may similarly hamper your experience at your hotel, and you may find that certain local attractions may be closed, or limiting tourists, in order to prevent the spread of Covid-19.

If your travel experience is not ideal, it is important not to simply blame the travel operators, as they are working with many restraints as well.

Simply put, travelling in the post Covid-19 age is unlikely to resemble what you remembered, and it is important to adjust your expectations.

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