April 7, 2009-illustration for uncommon sense in Personal finance April, 11
Credit Sarah Lazavoric for The National
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Tidy savings in the grubby hotel room on umpteenth floor



When I roll into a new town while on holiday, and it's something I've done in more places than I care to remember in more than 60 countries, the first thing that occupies my attention is finding an inexpensive place to sleep. From bedbugs in India to grubby bed sheets in Thailand, from freezing drafts in Turkish caves to the hard floor of my parents' hotel room in Bulgaria, I can cope with just about anything if it's cheap.

Even in my mid-thirties, I will happily settle for a bunk bed in an odorous backpacker dormitory, confident in the knowledge that slumming it like a hardcore traveller is the best way to keep costs to a minimum. Never mind if the reception is full of sinister chain-smoking men in black leather jackets, if the toilet stinks, if the hot water taps are broken and the windows cracked. Cheapness trumps everything.

However, I have recently had to rethink my extreme parsimony, and I am beginning to realise that instead of travelling cheaply, I should travel smartly. My change of attitude stems from a recent trip to Egypt, where I met up with a friend from school for a few days' holiday. While for me accommodation was a basic hotel in downtown, my friend enjoyed a five-star resort by the Pyramids. His room was a duplex with fresh bowls of fruit every day, a balcony with a fine view and huge televisions upstairs and downstairs.

My accommodation was a slightly grubby room on the umpteenth floor of a dusty apartment block. Well, I could reason, my friend, who I have known for more than 20 years, is a well-paid doctor who does not need to save on the pennies as he can look forward to a generous pension when he retires. It's only right that I am more careful with money, since I have none of the financial securities offered by working for Britain's National Health Service. The thing is, though, my friend did not pay a single penny for his room while I had to dig into my savings to fund my bed.

His trick was to make use of bonus points accumulated on a hotel membership scheme. And it wasn't the first time he has stayed for free somewhere. He seems to get rooms for nothing more often than he pays for them. By checking the internet regularly for the latest offers, he vacuums up rooms that are being offered at a special discount. Instead of needing 25,000 points for a night's stay, for example, he pounces when the hotel is letting them go for just 5,000 points.

Of course, plenty of people make use of such membership schemes and enjoy luxury nights in places across the world at a minimum cost. However, my friend has honed his money-saving techniques to a fine art and as a result makes savings most other members could not dream of. For a start, he has three membership accounts using different addresses so that, when a special offer is only for a limited number of nights, he can stay longer by using more than one of the accounts.

And he books rooms for many of his friends through his accounts, so the points accumulated for their stays are credited to his account. He even buys up rooms using the vast amounts of points he racks up, and then sells them back to friends, making a tidy little profit along the way. There are downsides to his approach to holiday accommodation, not least that his travel plans can end up depending too heavily on where rooms are on special offer.

And it's often the less popular hotels that are out of town that the hotel chain is keenest to flog off cheap. What you imagined would be a romantic setting in the old town can be 45 minutes' drive out of the city and beside an industrial park. Then there is the very fact that you are staying in a chain hotel. The purpose of many of these is that they maintain the same standards wherever you are, which often means that once you step through the front door, you could be anywhere in the world. Forget about local character.

You can also forget about venturing off the beaten track, as the big chains are concentrated in the big cities and in many countries are rare or non-existent outside the capital. But each evening in Cairo, when I went back to my slightly seedy and unwelcoming joint, and he headed back to his five-star luxury, it was hard not to feel like a fool. The problem is, becoming a platinum member, as my school friend is with his favoured hotel chain, is not easy. To reach this exalted height, you must first, among other things, stay dozens of nights in a single year at the company's properties. And to do that means forking out a lot of money. Perhaps in the long run it would prove to be a good investment.

The money put in now may lead to plenty of cheap stays later on - they do say you have to speculate to accumulate. However, faced in the future with the choice of the cheapest room in town and paying full price for a luxury chain hotel, I know which one I will choose. And for that reason I will be staying in cheap, grubby hotels for a modest cost forever. While my friend will enjoy five-stars for free.

dbardsley@thenational.ae

ROUTE TO TITLE

Round 1: Beat Leolia Jeanjean 6-1, 6-2
Round 2: Beat Naomi Osaka 7-6, 1-6, 7-5
Round 3: Beat Marie Bouzkova 6-4, 6-2
Round 4: Beat Anastasia Potapova 6-0, 6-0
Quarter-final: Beat Marketa Vondrousova 6-0, 6-2
Semi-final: Beat Coco Gauff 6-2, 6-4
Final: Beat Jasmine Paolini 6-2, 6-2

Company profile

Name: Fruitful Day

Founders: Marie-Christine Luijckx, Lyla Dalal AlRawi, Lindsey Fournie

Based: Dubai, UAE

Founded: 2015

Number of employees: 30

Sector: F&B

Funding so far: Dh3 million

Future funding plans: None at present

Future markets: Saudi Arabia, potentially Kuwait and other GCC countries

Pakistan v New Zealand Test series

Pakistan: Sarfraz (c), Hafeez, Imam, Azhar, Sohail, Shafiq, Azam, Saad, Yasir, Asif, Abbas, Hassan, Afridi, Ashraf, Hamza

New Zealand: Williamson (c), Blundell, Boult, De Grandhomme, Henry, Latham, Nicholls, Ajaz, Raval, Sodhi, Somerville, Southee, Taylor, Wagner

Umpires: Bruce Oxerford (AUS) and Ian Gould (ENG); TV umpire: Paul Reiffel (AUS); Match referee: David Boon (AUS)

Tickets and schedule: Entry is free for all spectators. Gates open at 9am. Play commences at 10am

CABINET OF CURIOSITIES EPISODE 1: LOT 36

Director: Guillermo del Toro
Stars: Tim Blake Nelson, Sebastian Roche, Elpidia Carrillo
Rating: 4/5

Country-size land deals

US interest in purchasing territory is not as outlandish as it sounds. Here's a look at some big land transactions between nations:

Louisiana Purchase

If Donald Trump is one who aims to broker "a deal of the century", then this was the "deal of the 19th Century". In 1803, the US nearly doubled in size when it bought 2,140,000 square kilometres from France for $15 million.

Florida Purchase Treaty

The US courted Spain for Florida for years. Spain eventually realised its burden in holding on to the territory and in 1819 effectively ceded it to America in a wider border treaty. 

Alaska purchase

America's spending spree continued in 1867 when it acquired 1,518,800 km2 of  Alaskan land from Russia for $7.2m. Critics panned the government for buying "useless land".

The Philippines

At the end of the Spanish-American War, a provision in the 1898 Treaty of Paris saw Spain surrender the Philippines for a payment of $20 million. 

US Virgin Islands

It's not like a US president has never reached a deal with Denmark before. In 1917 the US purchased the Danish West Indies for $25m and renamed them the US Virgin Islands.

Gwadar

The most recent sovereign land purchase was in 1958 when Pakistan bought the southwestern port of Gwadar from Oman for 5.5bn Pakistan rupees. 

1971: The Year The Music Changed Everything

Director: Asif Kapadia

4/5

The Way It Was: My Life with Frank Sinatra by Eliot Weisman and Jennifer Valoppi
Hachette Books

MATCH INFO

Newcastle United 2 (Willems 25', Shelvey 88')

Manchester City 2 (Sterling 22', De Bruyne 82')

TWISTERS

Director:+Lee+Isaac+Chung

Starring:+Glen+Powell,+Daisy+Edgar-Jones,+Anthony+Ramos

Rating:+2.5/5

COMPANY PROFILE

Name: Xpanceo

Started: 2018

Founders: Roman Axelrod, Valentyn Volkov

Based: Dubai, UAE

Industry: Smart contact lenses, augmented/virtual reality

Funding: $40 million

Investor: Opportunity Venture (Asia)

What is the FNC?

The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning. 
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval. 
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
 


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