With oil prices historically low (less than 30$ a barrel), Russia along with most other oil dependent economies, is suffering. The free floating Rouble plunged to new lower rates and reached 86 Roubles to the Euro. This is however, likely to encourage domestic production and finally help the economy become less dependent on oil in the medium term. However, in the short term it is not great news for the travel industry and relatively speaking it is becoming more expensive for Russians to travel abroad, especially when the government is encouraging you to stay at home.
However, this will affect the mass market, more than the luxury market and the incentive market more than the meetings segments. It will mean that hotels will have to rethink their pricing policy for the Russian market and there will be more interest in non-oil related markets, especially Ukraine and Georgia, as they are also likely to gain visa free access to Europe in the near future.
With all the economic turmoil much of it emerging from China, what is sure is that no company or destination, should totally rely on just one market, as it is too high risk, but they should spread themselves across a number of markets. For this reason, we encourage 4-5* hotels, DMCs and regions to sign up for participation in the B2B Luxury & MICE Workshop in Almaty on April 12th and Baku on April 14th, by 1st of Feb, by confirming their participation online
Hope to see you there and Kali kronya!
The ban on Turkey and Egypt has forced Russian tour operators to look for alternative destinations, this has created a flurry of activity as many destinations see this as an opportunity to gain market share. It is somewhat unique for a country as large as Russia simultaneously to have its top 2 leisure destinations banned within less than 2 months...