What are people's thoughts in general about staycations in your own city?
i) Is it worth it?
ii) Good ideas to do during a staycation
iii) Will Covid-19 trigger more staycations? (Due to possibly lower prices in luxury hotels to come?)
Although Covid-19s fatality rate needs to be kept in perspective there’s little doubt that we’re on the edge of a pandemic, albeit one that will make most people feel a little under the weather with a sizeable minority experiencing flu-like symptoms and in a very tiny minority of cases proving fatal - the problem is, as a global pandemic billions will get it, hundreds of millions will be very ill or hospitalised and millions will actually die. This is the mathematical outcome of a pandemic upon a global population topping 7 billion. If this plays out in the way experts increasingly believe it will be very disruptive to travel which means travel businesses desperate to keep the lights on will do whatever they can to capture the little trade there is, and to tempt those souls temptable by travel - which I suspect most of us here are amongst that group!
And for hotels the question how low can you go realises the answer “very, very low”. The majority of hotel costs are fixed, land, building, fixtures, fittings, power and salaries. The cost actually caused by having guests - laundry, room cleaning, toiletries, wear & tear, raw food - is very small. So managing to sell a room for the night at a rate that covers those “guest costs” plus say 50% means a very small contribution towards the fixed costs, which is better than none at all. If a hotel empty has a cash burn of $100,000 a night receiving even $20,000 towards that enables it to keep the lights on just that little longer, hopefully till the pandemic passes and the pent-up demand is then released to reignite the rates and put the property back into the black. The alternative is for hotels to close the doors, lay off everyone they can and utilise lines of credit and negotiations to either keep the fixed costs paid, or postponed.
So yes, I reckon if this becomes a pandemic expect some quite incredible hotel offers, which will almost certainly tempt me beyond endurance, but also expect some properties simply to mothball themselves. Who knows which properties will do what...
Classic economics on ignoring the fixed cost and optimising on taking as much margin as possible on the variable component (cost of running a room)!
However, still not seen hotels drop prices significantly. Have a few marriott hotels tracking in Seoul for April despite likely cancelling my trip.
Apart from the covid fears, it would be interesting to hear people’s thoughts on the ‘value’ of staycations.
Home is more comfortable than just about any hotel, so I expect there will be no "staycation" for me...
We have a trip to Europe booked for April and as of right now, have no plans to change that.
I find that staycations in hotels with spas are pretty awesome. You don’t have far to go after a day of pampering and they’ll even bring you lunch. If you are in a major city you can do all the things you would only do if you were showing around visitors. Like a tour on the HOHO bus and a visit to a museum. It’s also fun to go to the theatre and have dinner at an acclaimed restaurant or hole-in-the-wall. I love staycations!
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