Latest data on F1 Singapore GP’s impact on rates and travel

Singapore is the only Southeast Asian city on the Grand Prix calendar.

F1 Singapore Grand Prix: a magnet for globetrotters to soak in a festival-like atmosphere abroad.
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.