Pre‑Purchasing Travel Credits: A Smart Deal or a High‑Risk Gamble?
Why Airlines & Hotels Are Giving Out IOUs
Amid the cash‑flow crunch triggered by the Covid‑19 pandemic, airlines and hotels are filming a new trick: buying credits today at a discount and redeeming them later. Think of it as a one‑time coupon that lets the company boost its coffers without the hassle of bank loans or the headaches of restrictive debt covenants.
Venture into the Future (and Save Money)
- Companies win: They get immediate cash at a lower cost, freeing up funds for operations.
- Travelers win: They lock in a cool discount for their future trip, almost like a flight‑friendly savings account.
But What About the Risks?
- Change of Plans: If you decide you no longer want to travel, the credit might sit on the shelf, dead‑weight cash.
- Cancellation Chaos: Airlines might cancel flights or hotels may close temporarily, leaving you with credit that’s harder to redeem.
- Legal and Tax Quirks: Depending on jurisdiction, pre‑purchased credits could get tangled up in tax complications or contract disputes.
Is Now the Sweet Spot?
When air travel traffic is still low and prices are dipping, buying credits can feel like scoring a bargain. However, if the market is on a sudden rebound, you risk paying a premium for a discount that’s no longer as low. So, weigh the certainty of a future deal against the unpredictability of the travel landscape.
Bottom Line:
Pre‑purchasing could be a win if you’re comfortable with the uncertainty and still believe in the return on your future adventure. It’s a classic case of risk versus reward—and a good story to share over your next coffee break.
What offers are currently available?
Hot Hotel Gift‑Card Deals You Can’t Miss
Guess what? The hotel scene is spilling out big bonuses on gift cards right now—think 20% to a whopping 50%. If you’re hunting for that extra splash on your next getaway, keep reading!
Current Hotel Offers
- Anantara – 30% bonus on gift cards, valid until June 28, 2020, with 12 months of use left after purchase.
- Belmond – 20% bonus on gift cards, with no end date for when the offer works, and gift cards never expire.
- Marriott Hotels Thailand – 50% bonus on gift vouchers, available until June 30, 2020. Most locations run until December 30, 2020.
- Porter & Sail – 50% bonus too, still open to play with. Gift cards expire generally by December 31, 2022, depending on the property.
- Small Luxury Hotels – 20% bonus on gift cards, until June 30, 2020, giving you 18 months to enjoy.
Airline Bargains – A Quiet Crowd
Only one airline is lighting up the sky with a juicy offer. If you’re jet-setting, it’s worth a look.
Etihad Airways
- Super 50% bonus on travel vouchers, lemon‑sweet lick for viewers.
- Open until June 24, 2020.
- Cards last a solid 2 years from when you snag them.
Do the Math, Then Decide
Those 20–50% bonuses sure look like sweet deals, but a few quick checks will keep your wallet happy:
- Check the expiration window—no one wants a card that loses its firepower before you can use it.
- Make sure the bonus actually adds value beyond generic discounts.
- Stick to hotels or airlines that match your travel vibe—a good bonus means nothing if you’re in the wrong place.
FOMO’s real, but with a bit of savvy, you can splash the extra boost and still be on the right side of your budget.
When do the credits expire?
Why Buying Travel Credits Today Might Not Be the Best Move
In short: If you can’t actually jump on a plane before your credits expire, you’ve just spent your money on a souvenir you’ll never use.
What’s Stuck in the Baggage Hold?
The tourism radar still shows a “keep your hats on” sign. The Singapore government has been hammering home that the next few months will focus on essential-only travel with a menu of plenty of restrictions.
Weekends in Thailand or Vietnam? Not on the Horizon
We’re still a long way from the carefree thrill of a quick fly‑over to Bangkok or Ho Chi Minh City. That uncertainty makes me wary of buying travel credits that march toward 2020’s end.
2021 Looks More Promising – 2020 Might be a Catch‑22
While I’m cautiously optimistic about leisure getting back on track in 2021, the calendar looking that close to 2020 feels like a bridge that’s still under construction.
So, What Should You Do?
- Look for credit packages with at least 18 months of validity.
- Prefer those that don’t expire at all.
- Consider “comfort” over “cash” – keep your wallet happy for when the skies open.
How restricted are these credits?
Marriott Gift Cards vs. Specific Property Gift Certificates: Which One Saves You From Travel Hassles?
Ever wonder why a Marriott gift card feels like a global passport, while a gift certificate looks more like a single‑stop ticket? It’s all about flexibility versus commitment.
The Super‑Flexible House of Cards
Buying a generic Marriott gift card is like picking up a multi‑country travel voucher. It can be spent at any of the 131 countries Marriott operates in. Whether you’re nudged to stay in the remote corners of the world or the bustling city centers, you’re covered.
The Grounded Gold Ticket
Alternatively, snagging a gift certificate for a single Marriott property means you’ve implicitly booked a trip. Take the St. Regis Bangkok‑specific offer as an example: you’re essentially saying, “I’m going to Thailand.” If those pesky travel bans stick around, your voucher might just sit at the checkout counter adding a dash of disappointment.
Why Flexibility Wins (Picture a Puddle of Savings)
- Freedom to Choose – Pick a hotel in any nation you can actually get to.
- Hedging Your Bets – If the first country to open its doors to tourists is Australia, you can use the card there. If it’s New Zealand, Taiwan, or Japan, no problem.
- Less Expiry Drama – A property‑specific voucher can expire quickly if the destination’s locks stay up. A worldwide card keeps you in the game.
Getting Your Game Plan Straight
Planning a getaway as soon as restrictions ease? Keep your options capped by choosing a property‑agnostic gift card. That way, you’re not bet‑locked on a city that’s still on the quarantine list.
Don’t Forget the Safety Net
Travel insurance is like the unsung hero of trips. It covers mishaps like dropped luggage, flight cancellations, and those last‑minute airport scrambles. Find an inexpensive policy with our easy comparison tool. Having that peace‑of‑mind means you can truly enjoy the adventure.
What happens if the airline or hotel goes under?
Why Your Travel Credit might Turn Into a Vanishing Act
Travelling right now feels like walking on a tightrope, and that “credit” you bought from a hotel or airline might just be a fairy‑tale ticket. Before you hit that checkout button, let’s break it down.
Why the “discount” isn’t a love‑letter
- Risk‑based pricing: Companies price credits low because they’re scared something could happen – bankruptcy is a big one.
- Getting it means you’re essentially a loose end in a company’s heavy‑metal drama.
What happens if the company folds?
When a firm goes under, those fancy travel credits become unsecured creditors. In legal jargon, that means they’re at the very bottom of the priority ladder. Think of it—your money might just vanish into thin air.
Is it worth the gamble?
That’s the million‑dollar question. Do a quick “credit card check” on the company’s financials if they’re public. Give a nod to:
- Official revenue reports.
- Any recent yellow‑card news that might hint at trouble.
Think twice about hotel credits
Parents of the parent companies (like Marriott) might be separate from the actual hotel you’re booking. That’s a sneaky, common slip‑up, especially in places like Thailand where franchising is the norm.
- If a local franchise shuts down, the big naam, Marriott, is usually not stepping in, so your credit likely goes to waste.
Exceptions? Rare, but there are a few
Only a handful of deals come with a safety net. For instance, Porter & Sail will bail you out if you buy a gift card for a hotel that later shutters. Still, it’s a policy exception and not the rule.
Your final takeaway
Every credit is a potential “goodbye” to your money. Do your homework, stay skeptical, and remember: the extra laughs and emotional vibes come from the journey, not the high‑stakes gamble.
Do I have cashflow issues?
COVID‑19 is Slowing Down Singapore’s Economy – and It’s Not the Time for Fancy Spend
What the Numbers Say
The Monetary Authority of Singapore isn’t looking too kind: expect a 1‑to‑4 % contraction in GDP this year. That means more than your grocery bill is feeling the pinch.
Our Collective Reality
We all feel it in our pockets. If you’re already eyeballing your budget, now’s the moment to keep your eyes on the money, not on shiny gadgets.
Why “Travel Credits” Are Basically a Money Trap
- No Refunds, No Flexibility: They’re one‑time use tokens—just like a gift card that can’t be refunded.
- No Interest, No Growth: Unlike savings, they won’t earn you anything extra over time.
- Resale Trouble: The secondary market is kidney‑shrink‑tiny; many T&Cs outright ban selling them.
- It’s a Vulture‑Friendly Plan: Companies more scramble for cheap seats than for actual offers.
Check Your House Before You Go Out
Before splurging on holiday vouchers or elite deals, double‑check your finances. A well‑managed budget will keep you safer in these uncertain times.
Bottom Line
With the economy taking a hit, every dollar counts. Keep your escape plan realistic, avoid the “travel credit” trap, and tuck your wallet a bit tighter. After all, nobody wants to be the person who collects a bunch of useless credits when the city‑wide economy stalls.
Conclusion
Travel Credits: The Secret Sauce for Future Adventures
Feeling the urge to snag a travel credit that whispers promises of discounted future journeys? Great! Just remember this golden rule: abort the impulse‑buying fumble. Trust me, patience pays off.
Smart Strategies for Credit Shopping
- Pick a long expiry date. Ideally, choose a credit that never expires—those are the dreamers of the travel world.
- Versatility is key. A credit that can be used at multiple checkpoints (airports, hotels, car rentals) gives you the freedom to roam.
- Buy from a stable provider. Look for a company with a solid track record—no “here‑and‑now” vibes, just long‑term commitment.
Quick tip: if you’re tempted to make a snap decision, pause, reassess, and ask yourself, “Will this credit still be worth it next year?”
Stay Informed While You Save
Global health updates are still a major backdrop for travel. Keep an eye on credible sources for the latest COVID‑19 situation. (No flashy links—just reliable info.)
This piece first popped onto SingSaver.com.sg, but you’re welcome to make it your own now.
