5 key developments in the Russia travel market
- September 2021
- Phocuswright Research
Bolstered by the country's rising internet (81%) and smartphone (73%) penetration rates, the online travel market is projected to regain its footing in 2021, as revenue increases 16% to $8.4 billion. According to Phocuswright’s latest travel research report Russia Travel Market Report 2020-2024, online gross bookings growth will outpace the overall travel market annually through 2024, as online penetration climbs. Whether using online or offline distribution channels, Russians are rediscovering the tourism gems that their homeland offers, despite the pandemic restrictions. These types of in-country trips will fuel revenue increases for Russia's airlines, hotels, railways and tour operators in 2021.
Here are 5 key trends and developments in the Russia travel market:
- Airlines stay in the air: the goal for all of Russia's airlines is to be ready when international borders reopen and outbound travel resumes.
- Hotels await booking.com ruling: OPORA RUSSIA, an All-Russian public organization of small- and medium-size businesses, took aim at Booking.com's oversized market presence by challenging the OTA giant's price parity contract clause in court.
- Tour operators long for reopened borders: they took the hardest hit and as a result an estimated 30% of the country’s small travel agents have closed their doors permanently according to Association of Tour Operators Russia.
- The pandemic jumpstarts online bookings: Russians have embraced digital transactions to make their domestic travel aspirations a reality due to ubiquitous internet access and smartphone use.
- Vaccine resistances jeopardizes recovery: Russia's Sputnik V vaccine was the first to be authorized worldwide, yet the country's vaccination rates pale in comparison to other industrialized nations.
With case counts rising in mid-2021 and vaccine hesitancy persisting, both inbound and outbound international travel face major challenges. Still, in most sectors, online penetration has increased and is expected to continue rising, with particularly high mobile search use. Russia Travel Market Report 2020-2024 provides market sizing, projections, and key segment analysis for the Russian travel industry through 2024.
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