Dear Subscriber,
Even though the Russian market has taken a battering over the winter months, all signs seem to indicate that the future is bright, the Rouble has recovered 12% of its value and the prices of oil has shot back up to over 60$ a barrel, which is providing a major boost in confidence. The May holidays (May 1-10th) were quite successful in terms of the no. of travel packages sold, however only the summer will be able to provide us with a more comprehensive picture of what is the real the impact of the economic crisis on outbound travel. Regardless of any short term slowdown, the Russian market is nevertheless considered to be strategically important, and Russia is still expected to be the 3rd largest European outbound market by 2012. As a result, key players are still jockeying to position themselves, Thomas Cook is on the verge of acquiring a leading Russian Tour operator, while the Russian TO, VKO was recently acquired by TUI. TUI also partly owns Mostravel and Kuoni acquired Megapolus Tours in 2007. We expect to see further acquisitions by the end of 2009 as cash starved Russian tour operators with have to sell out to foreign players to obtain much needed capital to continue their expansion.
Best regards,
Helene Lloyd
Director
TMI Consultancy
News Flash
Rouble Recovery
The Russian Rouble has made a surprisingly fast recovery, regaining 12% of the 30% of its lost value against the US dollar earlier this year.
Thomas Cook Market Entry and TUI Expansion
The Thomas Cook Group is about to buy a large Russian tour operator, according to its Chief Executive Manny Fontenla-Novoa, who says the deal may be signed within weeks.
Fewer Billionaires in Russia
The number of Russian billionaires fell from 110 to 32, according to the recently published list by Forbes magazine.
One Third of Russians Reduce Their spend on Travel
According to the survey by WIN Crisis Index and the Russian Romir research center, in the past 3 months over 36% of Russians have to cut down their expenses by reducing their travel budget.
Hotel News
More International Brands in Russia
Despite the negative affects of the global economic slowdown, many international brands continue their expansion into the Russian market.
Aviation News
St-Petersburg Airport to Be Upgraded
St-Petersburg's officials have announced the tender for a $1.28 billion contract to overhaul and operate for 30 years Pulkovo airport, which is the main airport in the city.
Etihad Airways Comes to Kazakhstan
On May 7, 2009, Etihad Airways started the first direct flight from Abu Dhabi to Astana, the capital of Kazakhstan.
Market News
Where Russians Spend the May Holidays
A top Russian tourist portal for consumers, travel.mail.ru, held a survey asking its users about their preferences for spending the May Holidays (May 1-10), traditionally the second most popular public holiday period for Russians after the New Year.
Russia Will Be Visa Free for 3 Days for the Cruisers
To stimulate the falling demand for Russia among foreign visitors, the government has passed a new allowing those coming to St-Petersburg on a cruise ship, to stay in the country for 3 days without a visa - as of June 2009.
Demand for Low-Cost Bus Tours is Down
Russian tour operators selling low cost bus tours to Europe, report a decline of between 20 to 50% for this product during the first third of 2009.
Natalie Tours Launches Travel Agency Retail Chain
One of the top 5 tour operators in Russia, Natalie Tours, announced the launch of its own retail chain.
Feature
Russian Traveller Profiles from 5 Key Russian Cities by TMI
As the Russian market is not homogenous, and the traveller profile vary from one region another, TMI Consultancy performed a consumer survey of 1500 respondents in 5 key Russian cities, including Moscow and St Petersburg in the European part of Russia and in Khabarovsk, Vladivostok and Yuzhno-Sakhalinsk, the key cities in the Russian Far East.
Economics
The Russian Reserve Fund Starts to Grow Again
In early May, the Russian National Reserve Fund started to grow again for the first time in the last 9 months.
Due to the economic slowdown, the Russian government has decided to allocate an unprecedented amount of money ($23 billion) to support a 3-year program to help the development of small and medium enterprises (SME's).