Hotels need long-term plan for F1 packages: study

Source : Sraits Times - 5 Jun 2008

HOTELS need to have in place a long-term pricing strategy when it comes to room rates and hospitality packages for the Formula One race to ensure that visitors keep coming back for subsequent races.

Integrated Decisions and Systems International Inc (IDeaS), which provides revenue optimisation software to the hospitality industry, released a study conducted last September which examined two Grand Prix weekends in Shanghai, Kuala Lumpur (KL) and Melbourne.

While both occupancy and daily room rates saw an increase on average, both Shanghai and KL did not achieve full occupancy. Instead, hotels in the two cities saw occupancies of 87 per cent and 85 per cent respectively on Saturday night of the race weekend.

This could be due to weaker demand from F1 fans than anticipated, coupled with insufficient bookings from base business such as groups and air crew, the study said. A mix of customer base - both leisure and base bookings - would be ideal to maximise revenue.

Average daily rate for hotel rooms should be 55-60 per cent higher during the race weekend compared with surrounding weeks, while revenue per available room (RevPAR) generally registers an 80-90 per cent jump, the study recommends.

For Singapore, reasonable prices could prove an added incentive for visitors, should the novelty of a night race lose some of its shine over the next few years.

However, cancellations also reached a high as people might be inclined to shop around, said IDeaS’ director of services, Klaus Kohlmayr, who suggested that in addition to deposits or cancellation charges, hotels should consider overbooking their rooms. Describing overselling as a ‘manageable risk’, he pointed out that cancellation was averaging 60 per cent higher during the race period in the three markets analysed.

A review of the booking curves for Shanghai and KL also revealed that bookings began to flow in much closer to the actual date, with the majority of demand occurring about two to three months before the race itself and over 50 per cent of individual reservations taking place within a month of arrival.

Source : Business Times - 5 Jun 2008

Posted in General, Hotel | Tagged: Formula One, Singapore Hotels | No Comments »

Rental flats: HDB to weed out errant tenants

Posted by lushhomeonline on June 5, 2008

THE Housing and Development Board (HDB) is clamping down harder on the abuse of its heavily subsidised rental flats.

Enforcement blitzes to identify illegally rented flats will be stepped up and they will be extended across a wider area of the country, said the HDB yesterday.

Its response comes amid growing disquiet on several fronts about the abuse of subsidised rental housing.

MPs, residents of rental blocks and eligible Singaporeans who feel they have been left in the queue while foreign workers snap up cheap flats have all called for action.

The Straits Times reported last week that an increasing number of tenants have been illegally subletting HDB flats to cash in on the demand for low-priced accommodation. The flats are often leased to workers from Malaysia, China and India who are either in the dark about rules or just want the cheapest rental option.

Some MPs told The Straits Times that residents had alerted them to the illegal rentals and demanded more enforcement.

‘There should be more thorough checks,’ said Aljunied GRC MP Cynthia Phua. ‘Subsidised housing should be given to deserving families. People who do not need it should let it go.’

HDB rental flats have soared in demand over the past year, with the waiting list up by at least 30 per cent in recent months. There are about 4,000 applicants in the queue with a waiting time of 15 months - double the wait in 2006.

Ms Lee Bee Wah, an Ang Mo Kio GRC MP, frequently gets appeals from Singaporeans who are eligible for rental flats but have been stuck in the queue for several months.

The issues concerning rental flats have been raised in Parliament before. National Development Minister Mah Bow Tan said in a February session that HDB will increase its supply of 42,000 flats by 20 per cent. It is also reviewing its eligibility scheme.

He also said then that enforcement will be carried out to ‘weed out those who do not need or have abused the privilege of a rental flat’.

HDB has stepped up enforcement efforts and extended blitzes to areas such as Jalan Minyak, Telok Blangah, Jalan Bukit Merah, Kallang- Whampoa, Mei Ling Street and Clementi this year. These are on top of annual inspections ‘to ensure the tenancy of the flat is in order’.

Tenants illegally renting out their home can lose the flat and face a five-year ban from renting or buying HDB property.

As of April, HDB had recovered 131 flats since 2005.

An MP for Pasir Ris-Punggol GRC, Mr Teo Ser Luck, said the community could also be roped in to help. ‘There is a greater demand for rental flats and we need everyone’s help to highlight errant cases,’ he said.

HDB said that about 30 per cent of the cases of illegal renting uncovered stemmed from residents’ feedback.

North West District Mayor Teo Ho Pin, who is also MP for Bukit Panjang, said the problem goes beyond housing demand and touches on the lack of cheap, adequate housing for foreign workers.

‘We need to quickly provide solutions to house the foreign workers,’ said Dr Teo, so as not to crowd out needy Singaporeans.

Retiree Amy Tan Ai Bee, 75, is one such Singaporean. She has spent 14 months in the queue: ‘I think it’s really unfair that I waited for such a long time, yet there are people who are renting their flats out for a profit. I hope this can be addressed soon.’