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The following article was written by Rachel JC Fu, University of Florida, originally published on The Conversation, and published here with permission:
In late 2023, I had my first Formula 1 experience, attending the first Las Vegas Grand Prix. I have never been to an F1 race; my interest was sparked during the pandemic, mainly through the Netflix series Formula 1: Drive to Survive.
But I’m not just attending as a fan. As the inaugural chair of the Department of Tourism, Hospitality and Event Management at the University of Florida, I saw this as an opportunity. Large-scale events and festivals are an ever-increasing share of the tourism market – and as an educator, I hope to prepare future leaders to manage them.
And what better place to learn how to do that than in the stands at the Las Vegas Grand Prix?
The future of tourism lies in events and experiences
Travel is fun, but it’s also big business: It’s a $2.6 trillion industry in the United States alone, employing 15 million people. As travelers increasingly plan their trips around activities rather than locations, industry leaders and academics are paying attention.
Event tourism is also key to many cities’ economic development strategies—think Chicago and its annual Lollapalooza music festival, which has been held in Grant Park since 2005. In 2023, Lollapalooza brought an estimated $422 million to the local economy, with record-breaking crowds flocking to the city’s hotels.
That’s why when Formula One announced it was committing to a 10-year race in Las Vegas, the region’s tourism agencies were eager to spread the word. The head of the agency later announced that the 2023 Grand Prix ultimately generated $100 million in tax revenue.
Why Formula 1?
Formula One provides a prime example of the economic importance of event tourism. Formula 1’s total revenue in 2022 was approximately $2.6 billion, according to its parent company’s latest full-year figures. This is a 20% increase from 2021 and a 27% increase from 2019 (the last year before the COVID-19 pandemic). In 2022, a record 5.7 million fans attended Formula 1 races, a 36% increase on 2019.
This surge in interest can be attributed to expanded broadcast rights, sponsorship deals and a growing global fan base. Of course, there’s also a lot of money to be made at live events – the cheapest ticket to the Las Vegas Grand Prix is $500.
That’s why I think Formula 1 is more than just a pastime: it represents a major shift in the tourism industry and provides a lot of job opportunities. Making Formula 1 work requires not just drivers and pit crews, but a variety of professionals in event management, marketing, engineering and more.
The rapid growth of this industry suggests that it is a good time for universities to revamp their hospitality and business programs and prepare students for careers in this lucrative field.
How restaurant and business courses can prepare students
I believe that in order to adapt to the changing landscape of large-scale events such as Formula 1, hotel management schools should integrate professional training in event management, luxury hospitality and international business. Courses focusing on large-scale event planning, VIP client management and cross-cultural communication are essential.
Another area of curriculum enhancement is sustainability and innovation in the hotel industry. Like many other companies, Formula One has taken environmental responsibility increasingly seriously in recent years. While some critics are skeptical of this initiative, I think it makes sense. After all, event tourism both contributes to and is threatened by climate change. Therefore, projects may consider incorporating courses in sustainable event management, eco-friendly hotel practices, and innovation in sustainable events and tourism.
In addition, business plans can consider strategic marketing, brand management and digital media strategies that emphasize F1 and the larger event tourism space. As both continue to evolve, it’s increasingly important to understand how to leverage digital platforms, engage global audiences and create compelling brand narratives.
In addition to hospitality and business, other disciplines such as materials science, engineering and data analytics can also incorporate F1 into their courses. Given the growing interest in motorsport among younger generations, embedding F1 case studies and projects into these courses can increase student engagement and provide practical application of theoretical concepts.
Heading into the future: Formula 1 today and tomorrow
In recent years, F1 has stepped up its outreach to younger audiences and taken action to strengthen its presence in the United States, a market with huge potential for the sport. The 2023 Las Vegas race is a strategic step in that direction. These decisions, coupled with the continued growth of the sport’s fan base and sponsorship deals, highlight F1’s economic significance and future potential.
Looking ahead to 2024, Formula 1 appears to be ripe for further expansion. New events, continued advancements in broadcast technology and evolving sponsorship models are expected to drive revenue growth. The sixth season of “Drive to Survive” will be released on February 23, 2024. We already know this is effective marketing – after all, it inspired me to go to the Las Vegas Grand Prix.
I am more convinced than ever that large-scale events like this will play an important role in the future of tourism – a message I will pass on to my students. In my free time, I plan to improve the quality of my life in 2024 by synchronizing my holidays with the F1 calendar. After all, nothing says “relaxing vacation” like the roar of the engine and the excitement of the track.
Rachel JC Fu, Chair and Professor, Department of Tourism, Hospitality and Event Management | Dean, Eric Friedheim School of Tourism | Associate Professor, Department of Information Systems and Operations Management, University of Florida
This article is republished from The Conversation under a Creative Commons license. Read the original article.
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