Drawing insights from 2,800 hotels across 24 Grand Prix destinations, the latest Simon-Kucher study highlights the impact of Formula 1 on the tourism sector, illustrating how race weekends become high-impact events for both fans and hoteliers.
The global appeal of F1 is undeniable. As the 2025 season approaches, fans are eagerly planning their trips to witness the high-octane action firsthand. While the focus is often on the racetrack, another competition is unfolding behind the scenes - one that plays out in the hospitality sector.
With demand surging during Grand Prix weekends, hotels in host cities have a unique opportunity to maximize revenue through dynamic pricing strategies.
The numbers speak for themselves
Our recent study analyzing 2,800 hotels across 24 Grand Prix destinations reveals a striking trend: during race weekends, hotel rates increase by an average of 105 percent compared to the previous weekend’s regular demand. In some cities, this surge is even more notable, with prices tripling in response to heightened demand.
Notably, even two months ahead of the season’s start, nearly a third (32 percent) of hotels across all host cities are already sold out, emphasizing the need for early booking strategies. For hotels, these weekends represent a critical opportunity to optimize pricing strategies while balancing occupancy and guest experience.
The most expensive Grand Prix destinations for accommodation
Not all F1 races drive the same level of price inflation. Some destinations command premium rates, while others remain relatively affordable.
- Canada leads the pack: The Canadian Grand Prix ranks as the most expensive weekend for accommodation, with average nightly rates reaching €1,750 - far surpassing any other F1 destination.
- Abu Dhabi follows closely, with average rates at €694 per night, reflecting its status as a premium location with high-end accommodations.
- Other high-cost destinations include the U.S. Grand Prix (€682), Belgium (€633), and Italy (€595), all of which experience strong demand from international travelers.
- More affordable Grand Prix locations include China (€122) and Brazil (€141), which remain budget-friendly options for cost-conscious fans.
Regions with the steepest price increases
While absolute hotel prices are highest in certain destinations, the most significant price jumps during Grand Prix weekends tell a different story. Azerbaijan tops the surge list, with hotel prices increasing by a staggering 281 percent on race weekend.
Japan and Belgium follow closely, with rate hikes of 276 percent and 237 percent, respectively. Other notable surges occur in Australia (193 percent), Austria (186 percent), and Monaco (154 percent), where demand skyrockets as fans gather to these iconic race locations.
Premium markets such as Abu Dhabi, Miami, and Italy see more moderate increases (below 100 percent), as they already maintain high baseline rates. Interestingly, China remains an outlier, with only a 5 percent increase during its Grand Prix weekend, despite being the most affordable destination overall.
Maximizing growth during the F1 tourism boom
For hoteliers, the data underscores a clear takeaway: dynamic pricing strategies are essential to optimize revenue in response to fluctuating demand. A one-size-fits-all approach is no longer viable, and hotels must adopt agile, data-driven pricing to capture maximum value.
With F1 attracting fans globally, booking patterns vary by location. Hotels must track demand shifts leading up to race weekends and adjust rates accordingly. Rather than setting static rates, consider a tiered pricing approach to encourage early bookings while maximizing last-minute pricing potential.
Moreover, it is essential for hotels to review their OTB and price settings at least 180 days in advance, rather than focusing only on short-term adjustments. Major events like F1 can significantly impact demand, but some Revenue Management Systems may not fully account for them, as they sometimes prioritize competitor pricing trends over new booking patterns. To ensure optimal pricing, it is essential for hotels to manually review prices or verify that automated pricing algorithms are correctly incorporating event-driven demand factors. A proactive, event-driven pricing strategy will help hoteliers stay ahead of demand fluctuations.
Not to forget, direct bookings yield higher margins than third-party platforms. Strategic deployment of targeted promotions and loyalty programs across distribution channels will incentivize direct bookings from travelers. Additionally, F1 attendees may be willing to pay for exclusivity. VIP packages, including race-day transfers, exclusive dining experiences, and F1-themed amenities, can enhance guest experience and drive additional revenue.
Move with agility
To remain competitive, hotels must respond to the evolving market demands driven by F1’s rising global popularity. Events like the Grand Prix present significant revenue opportunities, but success requires strategic pricing, real-time market tracking, and a deep understanding of consumer behavior.
As the hospitality sector faces broader challenges - including fluctuating occupancy rates and shifting traveler expectations - leveraging event-driven demand spikes will be critical. A proactive, flexible pricing strategy allows hotels to maximize profits during F1 weekends and build a long-term, sustainable growth.
For a deeper dive into Simon-Kucher’s insights on F1-driven tourism trends, reach out to our sector experts today.
Thanks to contributor Rodrigo Portillo
