The recovery process of the tourism industry will be protracted in all directions, but Moscow, in comparison with other European capitals, will recover faster than other megacities due to the high capacity of the domestic market. Darren Brennen, Vice President of Interstate International, spoke about it on October 6 at a conference in the Kommersant press center.
He explained this by the fact that this city, unlike Prague, Budapest or Amsterdam, is in high demand among the local population. The same goes for seaside resorts. Another growth factor is city-breaks, which have become especially popular among Russians during the pandemic. The expert confirmed that the economic situation will certainly continue to influence tourism. That is why economy segment hotels and apart-hotels will have an advantage not only in Moscow, but all over the world.
“Now guests are less willing to contact other people, and prefer not to go to restaurants, but to cook for themselves. Expensive and luxury hotels will be hit hardest by the pandemic because they are more dependent on foreign guests, ”Brennen said, adding that these trends will be common in the short term.
According to BCG, safety is still a major factor in travel decisions, further exacerbating competition between destinations. The overwhelming majority of the tourists they surveyed dream of travel – 70% of them are ready to resume travel if they are convinced that all the necessary measures have been taken.
Experts see long-term trends as new opportunities for the development of the hotel industry. For example, in Great Britain it has become popular to stay in hotels in order to change the environment after a long self-isolation and to stay away from household members. In addition, commercial real estate is losing its attractiveness in terms of rent. This is forcing more and more companies to transfer all of their employees to remote work. Hotels can make money by becoming an event venue for their employees.
Deputy Head of Mostourism Tatiana Sharshavitskaya confirmed this trend. Hotels that have an art space, art gallery or library with them are increasingly popular, she said. She explained this by the fact that the number of millennial tourists has increased in Moscow (+ 31%). “In our opinion, these are the objects that will be relevant in the future. The share of young people among Russian tourists aged 18 to 24 has tripled in recent years – from 11 to 33%. And for them, emotional involvement is important. The youth audience perceives tourism as an experience and are ready to pay for it, while limiting their other expenses, ”Sharshavitskaya said.
In this regard, the trend for the popularity of inexpensive hotels will also continue, the expert believes. If guests from far abroad in 2019 spent an average of 14 thousand on accommodation, then the Russians – 5 thousand, and 34.5% even stayed with relatives and acquaintances. Of those 31.8% who still booked hotels, the overwhelming majority chose hotels of the 2-3 * level.
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