Worthless Stock = Caribbean Vacation

Talk about innovative thinking! Elite Islands Resorts, the Caribbean’s second largest hospitality chain, announced a very interesting promotion where consumers can pay for vacation stays by using their depleted stock portfolios.

Not only is this a wonderful marketing strategy in terms of developing a new revenue stream in a depressed economic climate, but more importantly, it demonstrates that the company is betting their future on the success of the American Stock Market. The real beauty behind this program is that it is garnering them a ridiculous amount of press (CNBC Interview w/Maria Bartiromo - pop-up window) and goodwill in the marketplace, without costing them a dime.

From their Press Release:
“Award-winning Elite Island Resorts -- the second-largest independently owned luxury Caribbean hospitality group -- announces what could be for many the deal of a lifetime: the opportunity to roll back the value of their currently depressed stocks to a higher value in this recessionary time! Elite Island Resorts will accept up to a maximum of $5,000 per room transaction in stock, utilizing the stock's higher value from July 1, 2008! The stock will be accepted as payment upon transfer to Elite Island Resorts from December 5, 2008, to January 31, 2009, and will be valid for payment of Caribbean vacations now through December 20, 2009. The "Roll Back Your Stock's Value" promotion is subject to space availability and does not include air transportation. Elite Island Resorts has set aside $10 million in resort accommodations toward this program.

The great news is there are no blackout dates; travelers can use this promotion toward peak travel weeks like the upcoming holidays, February and April Breaks -- the premium travel weeks of the year. This is also the perfect opportunity to "purchase" a gift certificate as a holiday gift for loved ones or even a honeymoon and wedding trip for a special couple. The all-inclusive Caribbean resorts featured include on Antigua: The Verandah Resort & Spa; St. James's Club & Villas; Galley Bay Resort & Spa; in the Grenadines, Palm Island Resort; and on Tortola, Long Bay Beach Resort & Villas, with dining plans.

Example: The all-inclusive rate for a family of four starts at $635 per night this December holiday season at The Verandah Resort & Spa, Antigua. If one transferred American Express stock, which closed at approximately $20 on December 4, 2008, toward the purchase of their vacation, Elite Island Resorts will value the stock at $40 per share in resort credit. So a seven-night vacation worth $4,445 can be “purchased" with only 111 shares. Approximately 100 stocks are featured in this one-of-a-kind promotion; a sample includes:
Applicable Stocks High Price as 7/1/08(*)
AET - Aetna Inc. $40
AXP - American Express $40
BA - Boeing Company $65
BAC - Bank of America $24
BK - Bank of New York Mellon Corp. $39
C - Citigroup Inc. $17
CAT - Caterpillar Inc. $74
DELL - Dell Inc. $22
GE - General Electric $27
GOOG - Google Inc. $534
GS - Goldman Sachs Group Inc. $177
HON - Honeywell International, Inc. $51
JPM - JPMorgan & Chase Co. $34
MER - Merrill Lynch & Co. Inc. $33
MET - MetLife Inc. $53
TYC - Tyco International $40
WMB - Williams Company $40
USB - US Bancorp Del $28

"How many of us wished we could have sold our stock before it collapsed this fall? Elite Island Resorts is now giving investors the opportunity of a lifetime to roll back time and the value of their stock to July 1, 2008 to apply it toward a luxury Caribbean vacation. This is the first time in the travel industry that a resort company has accepted stock as payment toward vacations. We are willing to wait for the stock to turnaround," stated Steven E. Heydt, Elite Island Resorts' president.
The Process and Terms: Vacationers "paying" with stock may hold a reservation for a specific date if they wish with a credit card, which will not be charged, while the stock is being transferred into a dedicated Merrill Lynch account. Resort changes and revisions for travel dates will be permitted during the applicable promotional period through December 20, 2009. This program is non refundable after the stock transfer has occurred to the Merrill Lynch account. The promotion is valid for new reservations only. If a vacation costs more than $5,000 the difference will be charged to a credit card.

Individuals may transfer stock for more than one accommodation, and each transaction is limited to a maximum of $5,000 in stock value.”

The success of this plan remains to be determined, but they are off to a terrific start!