Hotel News

Russian hotels profiting from increased foreign tourism inflow

According to Tourism Review report, the growing number of inbound tourists benefits greatly the Russian hoteliers, who has been increasing the prices. According to estimates of tour operators, next summer the cost of hotel accommodation in Moscow will be 10-20% higher than last summer for foreign tourists.

The new pricing policy of Russian hotels may increase the cost of tours by up to 30%. Tourism experts warn that it could also reduce the number of visitors.

Some tour operators stated that the last summer was a period of overbooking and hoteliers have high expectations for the next summer as well. As a result, the prices of accommodation for foreign tourists in St. Petersburg rose on average by 30-50%. In Moscow the increase was about 10-20%.

The tourism inflow to Russia is growing for the second consecutive year. At the end of 2015, the Russian Union of Travel Industry (RST) has reported an increase in the number of trips by 13.7%, to 29.4 million.

At the end of last summer, the hoteliers in Moscow and St. Petersburg reported a record operating performance. Earlier, JLL reported that the occupancy rates in these cities were 90% and 79%, respectively. In the first eight months of 2016, the occupancy rate of St. Petersburg hotels was 67.2%. This is a 2.7% increase compared to the same period last year. In Moscow, the rate was 70.5% (5.1% increase).

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