Travel & Tourism - Russia

Russia

The Travel & Tourism market in Russia is expected to see a rise in revenue as it is projected to reach US$16,870.00m by 2024.
Furthermore, the market is expected to grow annually at a rate of 0.51%, which will lead to a market volume of US$17,220.00m by 2028.
The largest market is the Package Holidays market, which is expected to reach a projected market volume of US$7,990.00m in 2024.
By 2028, the number of users in the Package Holidays market is expected to amount to 26.76m users, with a user penetration rate of 29.3% in 2024 that is likely to increase to 30.0% by 2028.
The average revenue per user (ARPU) is expected to be US$400.00.
It is also expected that 70% of the total revenue in the Travel & Tourism market will be generated through online sales by 2028.
In global comparison, United States is expected to generate the most revenue with a projected revenue of US$199bn in 2024.
Russia's travel and tourism industry is experiencing a shift towards domestic tourism due to travel restrictions and a weaker ruble.

Key regions: Malaysia, Europe, Singapore, Vietnam, United States

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

Structure:

The market consists of five further markets.

The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
The Hotels market includes stays in hotels and professionally run guest houses.
The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

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Market

Region

Region comparison

Currency

Analyst Opinion

Russia's Travel & Tourism market is experiencing a significant growth trajectory, driven by various factors influencing consumer behavior and market dynamics.

Customer preferences: Travelers in Russia are increasingly seeking unique and authentic experiences, moving away from traditional tourist hotspots to explore off-the-beaten-path destinations. This shift in preferences is fueled by a growing desire for cultural immersion and exploration of lesser-known attractions. Additionally, there is a rising demand for sustainable and eco-friendly travel options among Russian tourists, reflecting global trends towards responsible tourism practices.

Trends in the market: One prominent trend in the Russian Travel & Tourism market is the increasing popularity of domestic tourism. The vast and diverse landscapes of Russia, ranging from historic cities to picturesque countryside and stunning natural wonders, are attracting more local travelers. This trend is further amplified by government initiatives to promote domestic tourism and improve infrastructure in popular tourist regions. Moreover, the rise of digital platforms and online travel agencies has revolutionized the way Russians plan and book their trips, offering convenience and personalized experiences.

Local special circumstances: Russia's unique geographical position spanning across Europe and Asia positions it as a bridge between different cultures and regions, making it a fascinating destination for travelers seeking cultural diversity. The country's rich history, architectural marvels, and vibrant arts scene contribute to its appeal as a multifaceted travel destination. Additionally, the Trans-Siberian Railway, one of the world's longest train journeys, offers an iconic travel experience that attracts adventure-seekers and railway enthusiasts from around the globe.

Underlying macroeconomic factors: The growth of the Travel & Tourism market in Russia is also influenced by macroeconomic factors such as currency exchange rates, geopolitical stability, and government policies. Fluctuations in the value of the Russian ruble can impact travel expenses for both domestic and international tourists. Geopolitical developments and diplomatic relations play a crucial role in shaping tourism flows and visitor perceptions of safety. Government initiatives to simplify visa procedures, improve infrastructure, and promote tourism campaigns are instrumental in driving the growth of the Travel & Tourism sector in Russia.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels, vacation rentals, cruises, package holidays, and camping.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.