Heli-Russia accomodation and transport becomes cheaper to visitors

Heli-Russia accomodation and transport becomes cheaper to visitors

19-Feb-2015 Source: Heli-Russia

As we approach the 8th International Helicopter Industry Exhibition Helirussia 2015 the editorial department of RHS-holding estimated the concept shift in hospitality industry of the Russian Capital for foreign guests of the Exhibition in comparison with May, 2014. Not so long ago in 2013 Moscow ranked 2nd amongst the most expensive cities in terms of accommodation for foreigners according to Mercer Human Resource Consulting. Dramatic value fall of the Russian rouble at the end of 2014 changed sharply business terms in the hotel market of Moscow, St. Petersburg, Kazan and Novosibirsk.

The prices nominated in USD & Euro for accommodation considerably decreased while service level and activity of key stakeholders continuously increased in pre-crisis period and even when the crisis started.
According to Ernst & Young’s data worldwide hotel brands actively mastered the Russian market: within October, 2013 – October, 2014 37 new hotels under control of the international operators opened in the country (during previous year — there were only 17). Today total number of such hotels in the country reached 137, and by 2020 this number has to double.

Crisis cornered the hotel market: after a dramatic fall of fillability owners reduced the prices. Rating Moscow hotels started to reach the benchmark even suffered damages in an attempt to attract the clientele. Thus, Moscow hotels became very affordable to foreign guests.

The paradox of the moment is that in Moscow last year’s budget accommodation deficit remained though despite continuous hotel building. The number of rooms in Moscow for 2014 grew by 1,7 times, however the budget segment practically didn’t grow. And now foreign clients can triumph: instead of scarce inexpensive hotels many foreign guests of the capital will be able to afford accommodation in top hotels segment. This opportunity will remain within 6-9 months of the current year then again will come nearer to the pre-crisis level.

Cushman & Wakefield expert note that 2014 demonstrated dollar prices reduction for allocation in hotels of all categories consequently expensive and very expensive hotels continued to show the most noticeable decrease.

A peculiar anti-recessionary reaction also occurs in Moscow HORECA business. On the one hand, economic crisis didn’t affect attendance of expensive restaurants in the capital.
Fast closing of existing and opening of new restaurants at first glance looking as restaurants’ end in response to crisis started. Top and middle-class restaurants’ clientele tend to visit the new restaurants since to spend time in the ones opened the year before last is not fashionable therefore it is relevant rather to speak about rebranding, change the restaurant format but not about their massive shutting.

Today in the capital of Russia the gourmets from the abroad may savour more freshly opened restaurants maybe even more in terms of gastronomic variety.

Moscow Taxi also is not going to raise in prices considerably due to crisis. Taxi’s services are not directly connected with fluctuations of foreign currencies; petrol price has the strongest impact on their cost. At the end of 2014 in Russia petrol prices started to fall and in 2015 the cost of gasoline will change in proportion to inflation that is an increase within 15%. In a taxi services sector the competition is very fierce and an unreasonable increase in prices instantly leads to loss of clients.

Still exhibition tariffs for foreign participants of HeliRussia 2015 remain at the level of 2014. Guests of the exhibition from other countries had a real chance to optimize their expenses significantly when visiting MOSCOW HELICOPTER SPRING 2015.

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