The sudden crisis of the world economy has not only affected Europe and the United States. It has definitely affected countries in Asia like Japan, Taiwan, the Philippines, and even the small city-state of Singapore. Singapore, a rising metropolis in Southeast Asia, receives more than 10 million tourists every year who spend more than S$14.8 billion. But in 2008, a 1.6 percent decline in visitor arrivals was recorded in the Singapore Tourism Board statistics.
In order to increase the occupancy rate at its hotel, Ibis Singapore, a part of French hotel services and business group Accor, came up with a brilliant trick to attract more guests to its hotel.
In times of crisis, nobody wants to pay high room rates. Nobody wants to pay additional taxes and service fees either. But anyone in his delusions would want to pay the amount that he can afford and is very willing to pay in exchange for a particular service. But that is no longer an illusion for the loyal customers of Ibis Singapore. As part of the hotel’s pre-opening giveaway to travelers on February 12, 2009, guests can indicate the price they are willing to pay for a hotel stay and actually pay that amount!
Interested guests simply logged on to the hotel’s website (paywhatyouwant.com.sg) during designated sales periods to put in the price they were willing to pay. The fastest bidder won and was given the chance to book a hotel room at the Singapore Ibis for the price he was willing to pay.
There were no limitations as to the amount to enter. Bidders could enter any amount as low as S$1! Hiro Inoue, director of marketing for Ibis Singapore, explained that they actually expected to receive offers starting at a dollar or so. But to his surprise, the bids went up to $100. Inoue emphasized that this fact made them feel even more confident that guests appreciate their services and are willing to pay amounts up to $100 to take advantage of a stay. Thousands of visitors already entered your offer by the time the promotion was announced. And before long, the hotel reservation was almost full!
If your guests are surprised by this cool gift and are wondering about the logic behind this unique promotion, Inoue has an answer for them. Inoue explained that this bold move was made to test the waters of the hotel industry in Singapore. With the pending threats of the global financial crisis, this bidding process would help hotel management to determine the particular amount that customers are still willing to pay in exchange for excellent hotel services and classy accommodations.
With the wave of recession brushing the shores of many countries, businessmen, merchants, and leisure travelers are trying to take advantage of promotions and discounted fares as much as possible to save travel costs. But they are wise enough to discern which hotels can provide them with services and accommodations commensurate with the value they pay.
With the overwhelming reception of Ibis Singapore’s “Name Your Price” promotion, it’s clear that many people opt for quality services at reasonable prices. At Ibis Singapore, guests and travelers are sure to find what they are waiting for!