Data and trends regarding the business travel market in Russia

Aeroclub, a business tourism agency, reported an increase in corporate travel in 2018, resulting in a 22% rise in demand for air tickets within the sector. Notably, this growth outpaced the projected compound annual growth rate (CAGR) of 4.1% for the global business travel market by 2023.

In 2018, the Russian business travel market improved its relationships

In 2018, foreign destinations accounted for 38% of total air flights for business purposes, showing a slight growth of 6% compared to the previous year. Despite a complicated political situation in France, Paris remained the most popular international destination, with a 40% increase in business flights from 2017. Additionally, experts noted an increasing interest from corporations in Yerevan (+53%), Minsk (+49%), Istanbul (+46%), and Munich (+38%), completing the top five most popular foreign cities.

Aeroflot dominated almost half (44%) of all air travel for business travelers to foreign destinations, with S7 coming in second, and Turkish Airlines taking the third spot. The share of business class flights for foreign travel remained unchanged at 9% in 2018.

The Aeroflot research also indicated a drop in demand for visa processing for employees, which reached almost 30% by the end of the year. Experts attribute this significant decline to challenges in obtaining American visas in Russia, as well as the extended validity period of Schengen visas due to growing cooperation among European visa centers. The most popular countries where Russian business travelers applied for visas included Great Britain (+17%), Germany (+10%), and China (+9%).

Which hotels do Russian business travelers prefer?

According to analysts at Aeroclub, there was a 12% increase in booked nights in 2018 compared to the previous year.

The manufacturing, energy, and extractive industries were the most frequent guests in foreign hotels, accounting for 34% of all bookings, with a preference for 5-star hotels. IT specialists came in second with 11% of total bookings, while representatives from FMCG companies also actively traveled and stayed in hotels abroad, accounting for 10% of bookings.

The research revealed that over half of business travelers opted for 4-star hotels, while 26% of all bookings abroad were for 3-star hotels, and 18% of Russian business representatives preferred 5-star accommodations.

The following are the top 5 destinations where Russian businessmen stayed most frequently:

• Almaty (Best Western Plus Atakent Park Hotel (4*) and Holiday Inn Almaty (4*))
• Minsk (Hampton by Hilton Minsk City Centre (3*) and Renaissance Minsk Hotel (5*))
• Paris (Mercure Paris la Défense Grande Arche (4*) and Mercure Paris La Défense (4*))
• Munich (Holiday Inn Munich (4*) and IntercityHotel (4*))
• Milan (Holiday Inn Milan Garibaldi Station (4*) and Michelangelo (4*))

Three B2B travel marketing trends for 2019

The Business Tourism Association’s analysts reviewed the previous year’s results and identified significant trends that will impact the business tourism and B2B travel marketing industry in Russia in 2019.

The current trend is towards the use of technology and professionals

Extensive research conducted in 2018 revealed that the level of digitalization in the business travel sector in Russia is one of the highest globally. This trend is reflected in the use of biometrics, e-wallets, and voice search, which significantly reduce booking and purchasing time, sometimes requiring just a few clicks on a smartphone screen. However, in the context of a global digital reset of business processes expected in 2019, the competence of staff has become increasingly critical. A travel industry expert must now be capable of quickly assimilating new information, consolidating various online sources, and, most importantly, understanding customers’ needs, while prioritizing quality and innovative ideas.

Business + Leisure

Russian business travelers, who spend a significant amount of time on business trips, are no longer interested in following the traditional route of “airport-hotel-meeting-airport.” Instead, they increasingly prefer to bring their families, including spouses, children, and even pets, along on business trips. In addition, the opportunity to have a restful vacation that benefits both the mind and body is now a real motivation for business trips. Therefore, the concept of “bleisure” (business + leisure) has gained popularity and will be one of the major trends in business travel in 2019.

To meet this demand, conference centers are opening up outside of town with SPA areas, sports centers, and restaurants. Branded hotels are offering babysitters, children’s playrooms, and excursion tours to their guests. The itinerary of business travelers now includes visiting tourist attractions, authentic restaurants, entertainment centers, and beaches. While just a few years ago, only 7-10% of business travelers from Russia added one or two days to their trips for leisure, now nearly one-third of them prearrange bleisure trips.

Visa Difficulties

The ongoing political tension will have a negative impact on business travelers who apply for American visas. The cost of a multiple visa to the USA (B-1/B-2) for business travelers has nearly doubled, and the process has become more complicated. Some Russians have reported being required to attend multiple interviews several months apart, for reasons unknown. While some hope for a resolution and a return to the previous rules and pricing, it is clear that the USA visa application process will not be simpler in 2019, unless there is a significant change in political relations.

If you have any questions regarding marketing to business travelers in the Russian market, the Quarter Billion Agency Travel experts are available to assist you.

Download the “Russian Tourism Market Report: Trends, Analysis & Statistics” research for free to learn more about the Russian corporate travel market.