Singapore hotels see high room rate amid pent-up demand

Industry experts told CNA that the near-decade high in the average room rate for Singapore hotels reflects pent-up demand for travel due to the COVID- 19 Pandemic, but affordable options remain available.

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 than a year ago.

The international markets are opening up and they are starting to do their forward bookings or negotiating rates and hoteliers are beginning to feel comfortable with quoting higher rates, said Mr Khoo, who runs tourism consultancy MasterConsult Services.

The surge of enquiries over the last two years is a reflection of the pent-up demand. According to another tourism expert, Dr Barkathunnisha Abu Baker, corporate and MICE meetings, incentives, conventions and exhibitions are helping to drive demand.

The reputation of Singapore as a safe destination amid the pandemic is in part due to the reputation of the Singaporeans as a safe destination, said Dr Barkathunnisha, founder of Elevated Consultancy and Training.

She said that people feel they can trust a country like Singapore and that is driving a lot of demand.

Travel is about consumer confidence, according to Dr Barkathunnisha. When you see a country back to normal in terms of events, promotional campaigns and new attractions, it is a signal that there is a cue that everything is going well, it is a good idea to go to Singapore. The demand for rooms has gone up as hotels that CNA contacted all confirmed that demand for rooms has been on the rise.

Pan Pacific Hotels Group said occupancy at its hotels has reached more than 90 per cent, especially during peak holiday periods and long weekends.

The demand for stays and seasonality, such as public holidays and school holidays, is reflected by our room rates, said a company spokeswoman. With Singapore opening up to international travel and receiving higher tourism levels, demand has risen and has influenced the pricing.