This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

U.S. Remains A Strong Destination For Russian Travel Boom

LONDON, November 26, 2013 /PRNewswire/ --

Fueled by its growing middle class and rising spending power, Russia is experiencing a travel boom like never before, according to research by Hotels.com, which today publishes its Russian International Travel Monitor (RITM). Almost half (49 percent) of hoteliers worldwide have seen a rise in Russian guests in the last year, with 54 percent of those hoteliers seeing bookings grow by 10 percent or more. Moreover, three of the top 20 overseas destinations for Russian travelers are in the United States.

     (Logo: http://photos.prnewswire.com/prnh/20120628/540164 )

Russia is now the world's second-fastest growing outbound travel market in terms of spending, up 32 percent in 2012 and more than doubling since 2005. The RITM examines how hoteliers are reacting to this rapid growth, which last year saw Russians spend $43 billion on travel abroad, making Russia the fifth biggest outbound travel market globally, closely following the U.S. [1]

In 2012, 35.7 million tourists from Russia took a foreign trip, up from just 7.7 million in 2006. [2] The country has become a top performing growth market for many destinations and international outbound travel is forecast to grow by 7.5 percent per year on average to 2017. However, with a population of more than 140 million, there is still a huge untapped market for foreign travel that will create demand for different types of holiday and new destinations that are bound to make an impact on the pattern of world tourism.

Looking at data from the most recent Hotel Price Index™ issued by Hotels.com, the most popular overseas destinations for Russian travelers was an eclectic mix of short and long haul favorites. Three of the top 20 cities on the leaderboard were in the U.S. Las Vegas debuted at number 20, New York and Miami remained on the list ranking at number 6 and number 18, respectively. Los Angeles dropped from the chart.

According to the Hotel Price Index™, New York is positioned as the third city where Russian travelers spend the most, only preceded by Dubai and Geneva. The start of the year saw a further rise of five percent in New York's average hotel price, taking it to 217 USD a night. Miami and San Francisco also made the list and saw an increase of one and six percent, respectively.

Johan Svanstrom, president of the Hotels.com brand, said: "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. The rising size and spending power of middle class Russian travelers is a key driver behind this growth. Standing 104 million strong today, the group is set to account for 86 percent of the country's population by 2020, with a combined spending power of $1.3 trillion. [3]

Many hoteliers also supported this fact as 43 percent said that Russians are now spending more money on their travels. Moreover, Russians are becoming more confident and independent, with improved foreign language skills. More than half (53 percent) already book their accommodation online with only 32 percent opting for a traditional travel agent.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs