This Day On The Street
Continue to site
ADVERTISEMENT
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

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.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,568.53 -127.94 -0.73%
S&P 500 2,079.65 -12.01 -0.58%
NASDAQ 5,088.63 -48.8540 -0.96%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs