A new hotel in Singapore is responding to the credit crunch (and getting some useful PR at the same time) by allowing guests to pay what they want for a room.

For a limited period each day during the promotion, the Singapore Ibis - which opens on 12 February - lets potential guests bid online for the price they want to pay.

Room rates at the hotel normally start at S$138 (£64) but for the time being you could get a room for as little as S$1 (46p).

However, despite the current global financial woes, potential guests aren't actually bidding very low.

We expected people to start bidding at a dollar or so, but we've been getting bids of S$70 (£32) and S$80 (£36), marketing director Hiro Inoue told news agency Reuters.

Ibis say they may launch this promotion at their other hotels around the world.

If you're heading to Singapore soon and want to bag a bargain, go to www.paywhatyouwant.com.sg