SINGAPORE: The near-decade high in the average room rate for Singapore hotels reflects pent-up demand for travel resulting from the COVID-19 pandemic, but affordable options remain available, industry experts told CNA.
The Singapore Tourism Board (STB) released data earlier this month showing that the average room rate rose to S$259 in July. This was the highest since September 2012, when the average room rate was S$261.66, and almost 70 per cent higher compared with a year ago.
Hotels here are getting a “flood of enquiries” from overseas visitors and are seeing a “desperation” for rooms, said tourism consultant Christopher Khoo.
“Our international markets (are) opening up and they are starting to do their forward bookings or negotiating rates … and hoteliers are starting to feel comfortable with quoting higher rates,” said Mr Khoo, who runs tourism consultancy MasterConsult Services.
“The flood of enquiries right now is really reflecting the pent-up demand that had built up over the two years.”
The corporate and MICE (meetings, incentives, conventions and exhibitions) sectors are also helping to drive demand, said another tourism expert, Dr Barkathunnisha Abu Baker.
This is in part due to Singapore’s reputation as a safe destination amid the pandemic, said Dr Barkathunnisha, who is the founder of Elevated Consultancy and Training.
“People feel they can trust a country like Singapore and therefore that is driving a lot of demand,” she said.
“Travel is about consumer confidence,” Dr Barkathunnisha added. “When you see a country back to normal in terms of events, promotional campaigns and new attractions are coming up … it is a signal, there’s a cue that is going out there to say to people that … everything is going all right, it’s good, start travelling to Singapore.”
Hotels that CNA contacted all confirmed that demand for rooms has been on the rise.
Pan Pacific Hotels Group said occupancy across its hotels has reached more than 90 per cent, especially during peak holiday periods and long weekends.
“Our room rates are determined by dynamic pricing, reflecting the demand for stays and depending on seasonality, such as public holidays and school holidays,” said a company spokesperson. “With Singapore opening up to international travel and receiving higher tourism levels, demand has risen and influenced the pricing.”