In 2020, revenue of the online travel and tourism market in Russia slumped USD 4.48 billion due to COVID-19, a fall of over USD 10 billion compared to 2019, accommodation segment which is the biggest travel and tourism segment in Russia reduced to 1.3 billion, while the package holiday market fell to USD 2.25 billion.
Russia’s economy facing drastic changes during its invasion of Ukraine. It also affected the tourism market and summer destinations. Since 5th March 2022, the number of users on foreign company websites for accommodation and short-term rentals fell sharply because of limitations for the Russian market.
The number of visitors to TripAdvisor’s website in march decreased by 19% compared to the February 2022, while Booking.com traffic decreased by 18%. Agoda and Airbnb decreased by 15% and 12%, respectively and Trivago witnessed a huge fall of 56%.
Users have shifted to Russian booking platforms for accommodation. In the period from March 5 to 10, the number of users on bronevik.com quadrupled, while traffic on ostrovok.ru tripled. Demand created for companies kvartirka.com with 59% increase, sutochno.ru with 38% and 101hotels.com witnessed 28%.
Online travel sales in Russia growing significantly, it crossed USD 10 billion in 2019 with continuous rise since 2011. Hotel bookings accounts for 26% share in eTravel segment, notable sporting events like 2018 FIFA World cup and 2016 IICF ice hockey championship driving the eTravel sales by attracting tourists from developed nations like United States and China. Along with these, online travel agencies also helped to boost digital travel sales.
Google Trends estimates, that the Internet is the first information source for both business and leisure travellers, in an industry in which 83% of leisure travellers plan their trips online. E-commerce market value in Russia which valued at USD 27.47 billion in 2020 expected to cross USD 100 billion by 2025.
The decision-making process is increasingly influenced by pricing, reviews, pictures, blogs and videos shared by co-travellers via social media channels, so there is a rise in number of travellers book their trip through online payment transactions.
In 2020, revenue from apps in Russia increased to over USD 2.3 billion, continuing the growth of the past few years. Download numbers also increased and reached around 4.5 billion in 2020, travel related app downloads accounts for 20 million and expected to grow at over 10% CAGR by 2027.
Mobile hotel bookings have grown substantially over the past decade. People may book a hotel stay on their smartphones while on the go, such as when driving to work or any emergency situations. It is intuitive and easy, and as long as hotel provides excellent customer service, it is one of the most popular methods for customers to book at hotel again in the future.
Surprisingly, mobile phones account for 80% of all last-minute bookings. There are several applications for hotel booking experiences that may also assist customers in scheduling a last-minute stay. To boost hotel reservations and keep ahead of the competition, hoteliers must create and maintain technologies. Surprisingly, two out of every five mobile hotel booking transactions are cancelled due to poor customer experience.
The report covers major international players operating in the Russia Online Accommodation Market. In terms of market share, few of the major players currently dominate the market. However, with technological advancement and service innovation, domestic to international companies are increasing their market presence by securing new contracts and tapping new markets. Few of the major players profiled in the industry include Booking.com, Trivago, hotels.com, Bronevik and Ostrovok etc. Booking.com is the leading hotel booking platform in Russia holding more than half market share.
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Russia’s economy facing drastic changes during its invasion of Ukraine. It also affected the tourism market and summer destinations. Since 5th March 2022, the number of users on foreign company websites for accommodation and short-term rentals fell sharply because of limitations for the Russian market.
The number of visitors to TripAdvisor’s website in march decreased by 19% compared to the February 2022, while Booking.com traffic decreased by 18%. Agoda and Airbnb decreased by 15% and 12%, respectively and Trivago witnessed a huge fall of 56%.
Users have shifted to Russian booking platforms for accommodation. In the period from March 5 to 10, the number of users on bronevik.com quadrupled, while traffic on ostrovok.ru tripled. Demand created for companies kvartirka.com with 59% increase, sutochno.ru with 38% and 101hotels.com witnessed 28%.
Key Market Trends
Rising Demand for E-travel Sales in Russia Boosting Online Accommodation Market
Online travel sales in Russia growing significantly, it crossed USD 10 billion in 2019 with continuous rise since 2011. Hotel bookings accounts for 26% share in eTravel segment, notable sporting events like 2018 FIFA World cup and 2016 IICF ice hockey championship driving the eTravel sales by attracting tourists from developed nations like United States and China. Along with these, online travel agencies also helped to boost digital travel sales.
Google Trends estimates, that the Internet is the first information source for both business and leisure travellers, in an industry in which 83% of leisure travellers plan their trips online. E-commerce market value in Russia which valued at USD 27.47 billion in 2020 expected to cross USD 100 billion by 2025.
The decision-making process is increasingly influenced by pricing, reviews, pictures, blogs and videos shared by co-travellers via social media channels, so there is a rise in number of travellers book their trip through online payment transactions.
The Rising use of Mobile Applications creating Demand for Online Travel Booking
In 2020, revenue from apps in Russia increased to over USD 2.3 billion, continuing the growth of the past few years. Download numbers also increased and reached around 4.5 billion in 2020, travel related app downloads accounts for 20 million and expected to grow at over 10% CAGR by 2027.
Mobile hotel bookings have grown substantially over the past decade. People may book a hotel stay on their smartphones while on the go, such as when driving to work or any emergency situations. It is intuitive and easy, and as long as hotel provides excellent customer service, it is one of the most popular methods for customers to book at hotel again in the future.
Surprisingly, mobile phones account for 80% of all last-minute bookings. There are several applications for hotel booking experiences that may also assist customers in scheduling a last-minute stay. To boost hotel reservations and keep ahead of the competition, hoteliers must create and maintain technologies. Surprisingly, two out of every five mobile hotel booking transactions are cancelled due to poor customer experience.
Competitive Landscape
The report covers major international players operating in the Russia Online Accommodation Market. In terms of market share, few of the major players currently dominate the market. However, with technological advancement and service innovation, domestic to international companies are increasing their market presence by securing new contracts and tapping new markets. Few of the major players profiled in the industry include Booking.com, Trivago, hotels.com, Bronevik and Ostrovok etc. Booking.com is the leading hotel booking platform in Russia holding more than half market share.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
This product will be delivered within 2 business days.
Table of Contents
1 INTRODUCTION
4 MARKET DYNAMICS AND INSIGHTS
5 MARKET SEGMENTATION
6 COMPETITIVE LANDSCAPE
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Booking.com
- trivago
- BRONEVIK.com
- Airbnb
- Hotels.com
- Ostrovok
- aviasales
- Tutu
- TripAdvisor
- Skyscanner*
Methodology
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