F1 Singapore Grand Prix: a magnet for globetrotters to soak in a festival-like atmosphere abroad. Photo Credit: Adobe stock/FiledIMAGE
According to FCM Consulting travel trends report, for the upcoming
Singapore Grand Prix, business travellers who pre-booked 3 to 6 months
prior to visiting Singapore during the Singapore Grand Prix, had rates
averaging S$693 (US$508) in 2022 but are now paying an average of S$880
this year.
“Hotel room rates in Singapore have skyrocketed since early this year
but that has not deterred Singapore’s Hotel Occupancy levels. Q1-2023
was an average of 87% but Q2-2023 is at 122%. This reflects the demand
for business travellers coming to Singapore for both meetings and events
albeit Singapore being the third most expensive city to stay in Asia,
said Scott Reddie, chief business officer, FCM Asia.
“The reopening of China has been the catalyst for travel resurgence
globally including Singapore. This is reflected by the increase of
business class fares of 37% from Shanghai Hongqiao International Airport
to Singapore and 20% from Shanghai Pudong International Airport to
Singapore,” added Reddie.
Traveloka’s data on how Formula 1 Singapore Grand Prix said that
strong demand has put pressure on daily hotel rates during the
competition week, peaking on the race night (17 September).
Since Singapore is the only Southeast Asian city on the Grand Prix
calendar, racing aficionados from across the region will be gathering
for the race.
Said Caesar Indra, president of Traveloka: “According to our data,
the majority of those who booked hotels on our platform during the F1
weekend are from Indonesia, followed by China, Vietnam, Singapore, and
Thailand.”
One reason is the increasing interest in travel in 2023. This is the
first year since borders fully reopened and, as one of Singapore’s
marquee events, the F1 Grand Prix is a magnet for globetrotters who want
to soak in a festival-like atmosphere abroad. Singapore is also a
favourite hub of those keen to explore Southeast Asia. These factors
contribute to the surging demand for hotel rooms in the city during this
period, leading to higher prices.
Popular areas to stay
Not surprisingly, the most popular areas for hotel bookings are
relatively close to, or just on the outskirts of the racetrack. “They
only require a short commute to where the action will take place, and
are filled with amenities like shopping malls and food centres. It is
evident that consumers value convenience when traveling, making these
three locations top choices when choosing accommodations,” said Indra.
Hotel types
There is a good mix of three to four-star hotels among the top-tier
hotels being booked during the F1 weekend. “Singapore has no shortage of
quality, affordable hotels and, in line with post-pandemic trends,
travellers tend to spend on experiences rather than high-end
accommodation these days. However, hotel rates are higher this year
compared to last year, which means that travellers are, in fact,
spending more in general due to elevated costs,” added Indra.
Attraction draw
Besides attending the race, visitors have booked tickets to Universal
Studios Singapore, the Singapore Cable Car, and Bird Paradise.
Singapore’s ability to blend urban and nature activities is broadly
appealing to all segments of the market.