What will be the state of the Russian tourism market in 2022?

The start of 2022 had a significant impact on the entire Russian market, including the tourism sector. The market faced several challenges such as restrictions on travel to certain countries, the suspension of foreign services in Russia, among others. These factors had a negative impact on the industry, but there were also advantages in the form of emerging tourist destinations.

To delve deeper into this topic, QB Agency experts, who continuously monitor market conditions, have identified the current trends and future prospects for the tourism industry in 2022.

Comparing the start of 2021 to the beginning of 2022.

In the first quarter of 2022, the Border Service of the Federal Security Service of the Russian Federation reported that Russian citizens made 3,880,679 trips abroad for different reasons. This number represents a significant increase from the same period in 2021 when 2,644,444 trips were recorded. Nevertheless, travel figures are still considerably lower than pre-pandemic levels.

The primary reason for the surge in travel compared to the previous year was the relaxation or removal of COVID-related entry restrictions for tourists. Consequently, Russian tourists gained access to new destinations that were closed off in 2021. The most popular among these destinations were the far-off countries. The number of trips to these countries increased significantly by 77.2%, reaching 2,157,346 compared to 1,217,134 in 2021. In contrast, the number of trips to the countries in the “post-Soviet space” only saw a modest increase of 19.1% (1,447,118 trips) compared to the same period in 2021.

Analyzing the statistics provided by the Border Service of the Federal Security Service of the Russian Federation, it is apparent that the list of the most frequently visited countries by Russians in 2022 has undergone a few changes compared to the previous year.

Specifically:

• Turkey and the UAE continue to top the list
• Egypt, the Dominican Republic, Thailand, Hungary, and Mexico have gained popularity
• Tanzania, which shut its borders at the beginning of 2022 due to rising COVID-19 cases, became inaccessible to Russian travelers. However, the government has gradually started easing entry restrictions for Russian tourists, raising the possibility of an increase in Russian visitors to the country by the end of 2022.

Natural changes account for the increase in travel figures. Experts have pointed out that the rise in several destinations is due to the opening of borders, increased charter flights, and regular air transportation. In 2021, the Dominican Republic, Mexico, Hungary, and Thailand were inaccessible, and there were no direct flights to Egypt, charter flights to Cuba, and the cost of flights to the UAE was higher due to quotas. In 2022, these countries resolved these issues, resulting in an increase in incoming tourists.

However, one popular destination that experienced a significant decrease in the number of Russian tourists (-22.4%) was Turkey. Historically, Russians have traveled to this region actively since March for many years. This year, however, sanctions restrictions and rising airfare costs during that period resulted in a reduction in the inflow of Russian tourists.

The situation is quite different when it comes to the “post-Soviet” destinations, as these visits by Russians are usually non-touristic. From January to March 2022, the number of trips to Uzbekistan and Armenia increased by 249% and 200% respectively, mainly due to the surge in “debit-card tours” in March, which are more business and personal requests than leisure travel.

Regarding business trips abroad in general, there was a 68% increase in volume at the beginning of 2022 compared to the same period in 2021, and the list of countries visited for such purposes has also changed. Turkey ranked second in 2022, behind Estonia, while Spain and Serbia entered the ranking and Poland and Switzerland were unpopular destinations for business trips among Russians in 2022.

The Decrease in Russian Interest for European Destinations

The European Travel Commission (ETC) has concluded that Russian interest in travelling to European destinations has declined. This conclusion was reached based on the results of the Long-Haul Travel Barometer (LHTB), which examines traveller sentiment for the summer period from May to June each year. This expert examination is conducted every four months in six countries considered long-haul markets in relation to the EU: Brazil, Canada, USA, China, and Russia.

According to LHTB’s analysis for the second quarter of 2022, interest in trips to Europe remains weak for all the above-mentioned countries due to several reasons such as worsening economic development, covid restrictions, geopolitical shocks, and high travel costs for European destinations.

Despite this, ETC experts observe that these factors have a limited impact on tourists from Brazil, Canada, and the USA. However, in the case of China and Russia, the situation is much more complicated. Russian and Chinese tourists are more pessimistic about travelling to European destinations in the near future.

Furthermore, the desire of Russians to travel to Europe has reached its lowest level in the entire history of ETC observations, with a score of 78 points. This indicator is significantly worse than the level recorded during the imposition of the first covid restrictions between May and August 2020.

The main reasons why Russians are not traveling are as follows, according to a survey:

• 24% of respondents prefer not to travel outside of Russia.
• 13% of respondents cited the high cost of travel to European destinations.
• 10% of respondents expressed concerns about anti-Russian sentiment among European citizens.
• 9% of respondents mentioned the negative impact of the overall political situation.
• 4% of respondents would like to go to Europe but cannot due to country closures.
• 3% of respondents cannot bypass current financial sanctions, such as restrictions on using credit/debit cards.
• 2% of respondents mentioned a lack of direct flights to desired countries and concerns about travel due to COVID-19.

According to the study, only 20% of Russians surveyed are considering a European destination for leisure travel this summer, compared to 39% a year ago. Additionally, 7% of respondents expressed their interest in visiting Europe but not in the current period. The most popular types of vacations mentioned by respondents were beach holidays (51%), city visits (32%), national parks and mountains (17%), and rural areas (7%). It is worth noting that Turkey was included in the list of European countries for this study, which has traditionally been a popular destination for Russians. Without it, the percentage of Russians interested in European travel would be even lower according to the LHTB indicators.

The results of the LHTB study show that aside from Turkey, Italian destinations are highly preferred by Russian travelers with 15% interest. Cyprus, Germany, and Greece follow closely at 14%, 12%, and 11%, respectively. Spain and Austria have a 10% interest rate, while Bulgaria, Finland, and France are at 9%, 8%, and 7%, respectively. It’s worth noting that Serbia and Montenegro made their debut on the list.

In summary, the LHTB findings suggest that 3% of Russian respondents are willing to exclude European destinations from their travel plans. Consequently, it raises the question of what other locations have piqued Russian interest in the second quarter of 2022.

Russian Tourists’ Summer Travel Destinations in 2022

The summer travel market for 2022 has been analyzed by the ATOR Analytical Service, which studied the sales statistics of Russian tour operators over three months. The report highlights that Turkey and domestic tourism continue to be the top preferred destinations, as expected. However, the report reveals a decline of 20% in the package tour market compared to the summer of 2021, which includes both European destinations and domestic tourism. This trend can be attributed to the low availability of direct air transportation, as Russians prefer more accessible destinations for their travel.

The following regions have emerged as popular travel destinations, according to the report:

Turkey is the top destination in the sales structure of most Russian tour operators, with the majority of bookings (about 90%) for resorts in Antalya (Alanya, Belek, Kemer, Side). The average price of a tour to Turkey ranges from 160 – 210 thousand rubles, and the average duration of stay is 7-12 nights.

Abkhazia has also seen growth in tour bookings for most operators, and the average price of tours (preferably without a flight) is around 50 – 60 thousand rubles per week.

According to the sales statistics of Russian tour operators for the summer of 2022, the UAE, Egypt, and Maldives have experienced an increase in demand. The closure of many foreign destinations has contributed to this trend. Tours to the UAE are the most sold by Space Travel, Russian Express, and entered the top five by ANEX Tour and PAC Group. The average price for a seven-night stay in the Emirates is between 160-230 thousand rubles. Comfort-enhancing leisure is also a preference for Russians traveling to this destination.

Similarly, Egypt’s popularity has also increased due to restrictions on many European destinations. Charter flights from Russia to Egypt’s Goa region have been opened by three tour operators (Biblio-Globus, Fun-Sun, TEZ Tour), resulting in a large influx of Russians. The average price for a one-week tour to Egypt is around 150 thousand rubles.

Maldives is another popular destination for Russians in 2022, with many tour operators providing tour packages to this region, especially those unable to provide charter flights to Egypt. Premium holidays, discounts, and direct flights from Aeroflot Russian Airlines are some of the reasons Russians are attracted to the Maldives in the summer of 2022.

In addition, some European countries, such as Italy, France, Georgia, Croatia, and Hungary, as well as exotic regions like Thailand, Sri Lanka, Seychelles, Malaysia, Nepal, Indonesia, Singapore, and South Korea, have become popular tourist destinations for Russians due to the appearance of charter flights. Accessibility and convenience of routes and increased comfort conditions are the two main criteria Russians consider when choosing a summer vacation. Market experts have also noted important trends related to search queries and the use of tourist resources.

Services and Innovative Approaches to Advertising in the Travel Industry

During the timeframe of February 24 to March 24, 2022, Online Market Intelligence (OMi) released a report analyzing the changes in media consumption by Russians due to the blockage of numerous foreign services, including travel-related ones such as Booking.com. It is worth noting that Russians utilized these services for both domestic and international tours.

According to a report published by Online Market Intelligence (OMi) from February 24 to March 24, 2022, there has been a significant change in the media consumption of Russians due to the blockage of many foreign services, including tourist platforms like Booking.com. The report showed that the number of Booking.com users decreased by 27% within a month, and by the end of March, it was only 9% of the total number of respondents interviewed. As a result, most Russians have turned to “domestic” travel platforms such as Yandex Travel, Avito, and Travel.ru. The cancellation of Booking.com had an impact on the entire hotel booking system.

Valentin Miklyaev, CEO of Bnovo, a Russian company developing IT solutions for hotel booking, shared in an interview with Novy Prospekt that 75% of small hotels in Russia used only Booking or Airbnb. Therefore, when these channels were closed, the hotels were confused and sought alternatives, resulting in an increased volume of requests for Bnovo.

Apart from the rejection of foreign tourist systems, Russians also prefer “domestic” resources when choosing information projects about tourism. The TOP 10 in Russia includes Russian services-travel guides, platforms, and magazines for independent travelers. Despite the decline in sales on the package tours market, requests for this product in Russia have increased. According to Yandex Wordstat analytics, Russians have searched for “buy a tour” 66% more frequently than in 2021.

Conclusions

The tourism industry in Russia, both domestic and foreign, continues to be a promising niche as Russians are still interested in traveling abroad, experiencing premium tours to various destinations, and exploring new leisure formats. In 2022, the European region, except Turkey, lost its leading position as Russians started to explore new routes with the removal of restrictions and the introduction of direct or charter flights.

Furthermore, the channels of communication with customers in this segment have evolved. Previously, Russians relied on foreign services to book hotels and purchase tickets, but now the majority of the audience has shifted to domestic resources.

Therefore, advertisers must use new tools and approaches to promote their services in the tourism sector, taking into account the aforementioned factors. QB Agency experts can be trusted with this task as they always keep up with the latest market trends and know how to attract Russian customers who prefer comfortable leisure abroad.