Supported by growing internet (81%) and smartphone (73%) penetration rates in the country, the online travel market is expected to regain a foothold in 2021, with revenues increasing 16% to $ 8.4 billion. dollars.
According to the latest travel research report from Phocuswright Russia Travel Market Report 2020-2024, the growth of gross online bookings will overtake the overall travel market every year through 2024, as online penetration increases.
Whether using online or offline distribution channels, Russians are rediscovering the tourist gems their homeland has to offer, despite pandemic restrictions.
These types of trips to the country will fuel increased revenues for Russian airlines, hotels, railways and tour operators in 2021.
Here are five key trends and developments in the Russian travel market:
- Airlines stay in the air: The goal for all Russian airlines is to be ready when international borders reopen and overseas travel resumes.
- Hotels await booking.com decision: OPORA RUSSIA, an All-Russian public organization of small and medium-sized businesses, has targeted Booking.com’s oversized market presence by challenging the giant’s price parity contract clause in court of the OTA.
- Tour operators are keen to reopen borders: they have been hit the hardest and, according to the Association of Russian Tour Operators, 30% of the country’s small travel agencies have closed their doors for good.
- The pandemic is reviving online bookings: Russians have embraced digital transactions to make their domestic travel aspirations a reality due to ubiquitous internet access and the use of smartphones.
- Vaccine resistance is jeopardizing recovery: Russia’s Sputnik V vaccine was the first to be cleared in the world, but the country’s vaccination rates are paltry compared to other industrialized countries.
With the increase in the number of cases in mid-2021 and the persistence of reluctance to immunize, inbound and outbound international travel face major challenges.
Yet in most industries online penetration has increased and is expected to continue to increase, with particularly high usage of mobile search.
Russia Travel Market Report 2020-2024
The Russia Travel Market 2020-2024 report provides the market size, projections and key segment analysis for the Russia travel industry up to 2024.