Russian travel boosts hotel trade
A dramatic rise in outbound travel in Russia, which is being fuelled by increased spending power and a growing middle class in the country, is helping to boost worldwide hotel trade, a new survey has indicated.
According to the research conducted by Hotels.com, the nation is now the second fastest growing travel market in terms of spend, with a marked increase of 32 per cent recorded in 2012.
Indeed, outbound travellers from Russia spent $43 billion on travel abroad last year, more than doubling the amount indicated by the same survey taken in 2005.
Hotels.com questionned accommodation providers worldwide as to the impact of the newly discovered market and found that 43 per cent of participants said Russian travellers are spending more than ever at the present time.
But it’s not just that they are willing to part with more money; 35.7 million Russian citizens took a foreign trip last year, compared to just 7.7 million in 2006.
Despite the extraordinary increase, Hotels.com pointed out that the nation is home to more than 140 million people, meaning there is still huge untapped potential in the travel market.
“The meteoric rise of Russia’s outbound travel market is providing a welcome boost to hoteliers worldwide, with Russians among the highest spenders on hotel rooms globally,” commented Johan Svanstrom, president of the Hotels.com brand.
“The rising size and spending power of middle class travellers is a key driver behind this growth. Standing 104 million strong today, the group is set to account for 86 per cent of the country’s population by 2020,” he added.
When questioned as to whether they expect the extraordinary growth of Russia’s travel industry to continue over the next three years, 92 per cent of hoteliers answered ‘yes’, suggesting this is a trend to watch for some time yet.