Hotels around the globe say they're in desperate need of cash. The lockdowns and stay-at-home orders has led to a massive decline in business. It’s forcing them offer more creative deals.
Americans hungry to get out of the house may be able to strike a deal with hotel groups fighting to stay afloat. Hospitality tech firms are partnering to sell credits or ‘bonds’ at a discount, which can be used for future rooms, food or hotel services.
Caitlin Zaino is the founder of Porter and Sail, which created a “Hotel Credits” store right after the economy took a dive.
“Within a few days, most of our hotels were closing their doors, reaching out to us asking for help. They were using words like unprecedented, apocalyptic. They didn’t even know how to pay their mortgage,” Zaino said.
She also says hotels are looking for innovative ways to stay relevant and generate capital.
The big question is will consumers go for it? Industry experts say if demand is weak and hotel prices stay low in the future, it will work in the consumer's favor.
Zaino says her firm is also spearheading an initiative called “Buy One, Give One”. If a customer buys a voucher from Hotel Credits, the company will give one to a Healthcare worker on the frontlines of the COVID-19 battle in New York.