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Moscow hotels are cheaper than they seem

12:03, 24 сентября 2012

In recent years Moscow has been holding one of the leading positions in the international rating of the most expensive travel destinations of the world. However, during the crisis of 2008-09 the prices for Moscow’s hotels went down by 30-40% and yet didn’t reach the previous level. For that reason, the stereotyped view that Moscow’s hotels are expensive doesn’t meet reality any more. The Head of Moscow City Committee for Tourism and Hotel Industry Sergey Shpilko, the General Director of Svoy TT Company Sergey Voytovich and the Deputy General Director of Academservice Company Alexander Kurnosov explained it to the press last week.

 

According to Mr. Voytovich, the Hogg Robinson Group Company recently published world’s international class hotels’ prices rating. It says that an average stay in Moscow is $405 per night. “Here occur a lot of questions: what is an international hotel? Are Cosmos or Izmaylovo of an international class? Is this price for a presidential suit, double room or single room? Moscow is on the first place among cities with most expensive hotels. I don?t believe it’s like this”, – he stressed, noting that the largest hotel booking system Bedsonline is part of the TUI Holding along with the Hogg Robinson Group Company itself. For 5-6 September this system showed the lowest price for an average room without breakfast for 5* and 3* hotels – 14.7 thousand rubles and 4.9 thousand rubles respectively.

 

Moscow takes the third place by the cost of 4* hotels (8.2 thousand rubles). It’s interesting that there are three times less 5*, four times less 4* and three times less 3* hotels of Moscow than those of London presented in the system.

 

The cost of Moscow’s or St. Petersburg’s tour package booked through the Academservice Company’s hotel booking system, which includes about 300 Moscow hotels, is about €700 per week. “Let’s count the flight and we’ll see that the share of hotel services in the total price of a tour package is about $ 300-350 per week, which is about 50 euros per day per person. Tourists travel in May-August when for a group they’re offered weekend rates. In Rome or Madrid one should try to find such prices for this season”, – noted Alexander Kurnosov.

 

The Head of the Moscow City Committee for Tourism and Hotel Industry Sergry Shpilko added that if the ratings are based on the prices of five-star hotels, particularly on rack rates, Moscow may and will be expensive. “But if we take into account all hotels, it won’t be like this, – he said. – Seasonal rises and falls are more intense in Moscow which means the difference in prices of different seasons is higher as well. At the same time the draftsman judge by autumn and spring prices when it?s high season in Moscow. Besides, they judge by rank rates and not by tour operators? prices. The difference between them is significant in Moscow”.

 

According to him, in the first quarter of 2012 an average room in Moscow was 4100 rubles. “An average room price is the actual sales price, revenue from sold rooms divided by the number of their quantity. Of course, it’s an average temperature in the hospital. There are very expensive lux hotels, but they count no ice on the market, – he stressed. Moscow was among leader in high cost hotel accommodation till the crisis of 2008 – 2009. At that time there was a very strong demand, although it didn’t exceed the supply. During the crisis the prices went down by 30-40% and haven’t grown yet. If we take in consideration not only Moscow city statistics committee data, which counts 212 hotels, but tour operators’ booking systems as well counting all hotels Moscow hotels (there are over 300 of them), the prices will turn out to be even cheaper”.

 

According to the Moscow City Committee for Tourism, there are cheap 2* hotels and hostels among those 100 hotels which Moscow city statistics committee doesn’t take in consideration. All in all 46% of Moscow's hotels have 2-3*.

 

According to Sergey Shpilko, in the first half of 2012 the number of international arrivals to Moscow grew by 18.5% and amounted to 2.44 million. The government expects this number to exceed five million by the end of the year. “Half of them are from CIS as there are more guest workers than tourists. But the share of arrivals, which can be considered as tourist ones, is growing as well. Average hotel occupancy grew by 3% and it’s a good indicator”, – he stressed. It’s interesting that the highest increase in tourist flow is from China. In 2011 it was 32%, and in 2012 it’s over 40%.

 

Sergey Voytovich added that business tourism in Moscow is developing faster than the cultural one. According to him, in autumn and spring hotels are overwhelmed with business travelers and in summer, winter and at weekends hotels are empty. At the same time, tour operators which are part of Mostourpull (association created for forming combined tour groups) believe that within one year since it’s been created the amount of tourists from regions of Russia has grown significantly. If earlier one operator could attract 2-3 people a week, now he can attract 15-20 people.

 

Alexander Kurnosov stressed that tour operators now have less claims to the quality of hotels. “We regularly interview our foreign guests. Five-six years ago the main claims were quality-price ratio of the hotel services, lack of information in foreign languages, dirty streets, quality of restrooms. Now from all the claims remain traffic-jams and the weather. The emphasis moved from hotels and restrooms to such details as, for example, the distance between the parking place and the point of interest, the place of disembarkation of the passengers in the airports and at stations. Intrusive service in some museums, where the bag storage costs 100 rubles», – he said.

 

According to different surveys, 94% of Moscow’s guests are fully satisfied or almost satisfied with business class hotel service as they are either new or reconstructed.

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