Known as the most popular racing series in the world, Formula 1 is the king of motorsports, boasting an international fanbase of 500M+ people viewing from 150 countries. With 20+ events in 20+ countries each taking place over a 10-month long season, the sport draws in millions of broadcast views and fans in the stands at each race.
Returning to Las Vegas for the first time in almost 40 years, the Formula 1 Heineken Silver Las Vegas Grand Prix 2023 takes place on November 16-18 and is estimated to have a local economic impact of nearly $1.3 billion. This doubles the estimates for Super Bowl LVIII, which will be played at Nevada’s Allegiant Stadium next year.
These numbers are no surprise considering in 2022, the sport set a new attendance record with 5.7 million fans attending the 22 races throughout the season. F1 has a rapidly growing fanbase in the US due in part to the Netflix docuseries, Formula 1: Drive to Survive, which according to Nielsen, attracted over 360,000 new US viewers to the sport, adding to the trend of a 10% growth in US F1 fans over the past three years.- This blog is an excerpt from our latest special report, How to Use Market Intelligence to Drive Your Revenue Performance and Success. Download your free copy here: https://www.duettocloud.com/special-reports/how-to-use-market-intelligence-to-drive-your-revenue-performance-and-success
Joining a lineup of international host cities, the Formula 1 Heineken Silver Las Vegas Grand Prix may just make the largest economic impact of not only any event hosted in Las Vegas, but every other Grand Prix host city on Earth. This is major news for Vegas and the businesses on the strip, considering city officials plan to host the Las Vegas Grand Prix as an annual event until at least 2032.
How the F1 Las Vegas Grand Prix Will Drive Hotel Spending
For an average three-day ticket of $7,000, Formula One is expected to bring in plenty of high rollers and massive spending to the already profitable Vegas Strip. An estimated 300,000 F1 enthusiasts will descend upon the strip on race weekend, accounting for 400,000 nights of hotel rooms being booked on November 16-18.
In addition to ticket sales, the F1 Las Vegas Grand Prix is expected to generate $94,786,886 in local spending for the weekend, with more than a third of that going to hotels:
- Accommodation: $35,099,400
- Transportation: $15,523,200
- Restaurants: $44,164,286
Based on the track layout, many of the hotels on the strip directly face the circuit, with VIP-viewing sections for hard turns. These rooms and experiences are part of the most expensive packages – especially those with balconies that can double as private front-row seating for the race.
How Hotels Optimize Revenue for F1 Stay Dates
Hotels first released a significant number of rooms for the 2023 Las Vegas Grand Prix weekend about a year in advance, when room prices at the time ranged from $500 per night, up to the six and seven-figure range for three-night packages. This allowed hotels to capture early bookings from high-value customers such as corporate groups and F1 enthusiasts. For example:
- Resort World offered an 888 Experience, priced at $888,000
- Event partner Wynn Las Vegas offered a million-dollar F1 ticket package
- Now sold-out room options from the Venetian and the Bellagio ran from around $1,000 to $2,000 per night
As the race approaches and booking demand continues to fluctuate, the hotels that use third-party data to strengthen their demand forecasting accuracy and dynamic pricing will come out on top. By using third-party data to strengthen demand forecasting accuracy and dynamic pricing, hotels can ensure that they are maximizing their revenue during not only F1 weekend but the thousands of other impactful events happening on the strip throughout the year.
Making Business Decisions in the Fast Lane
When it comes to dynamic pricing for rooms, timing is everything. The sooner you know about impactful events near your hotel locations, the sooner you can incorporate details such as predicted attendance into your pricing strategy. Event data provides actionable insights into upcoming demand, which hotel operators use to optimize pricing and maximize RevPAR, such as:
PredictHQ is proud to be a data partner of Duetto Advance. Together, the two solutions help hotels drive higher RevPAR and increase revenue team efficiencies, as the partnership reduces the manual work of collecting local market event data, calculating its impact on market demand and therefore room pricing strategies.
Through the Duetto integration, PredictHQ provides event details including estimated attendance figures, venue details, event categories, and large language model (LLM) generated labels to have a really clear idea of the type of event happening, repeating dates of the same event when applicable, and AI-generated event descriptions. This intelligent and enriched data enables Duetto to fluctuate room rates more accurately in line with demand.
Together, PredictHQ and Duetto are further unlocking demand-based pricing optimization.
Much like F1 teams continually make changes to their vehicle and strategy to drive faster and safer, PredictHQ and Duetto are evolving the way hotels price rooms to drive revenue.
Intelligent event data is a valuable tool for hotels of all sizes. Start using event data today to accurately predict demand, optimize pricing, and maximize RevPAR. Get in touch to book a demo.