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Luxury & Boutique Hotels. Representation

Luxury and Hospitality …

Luxury Management Club understands what that means indeed. Indulge Yourself in a lifestyle of luxury at one of the unrivalled hotels we represent. Enjoy the outstanding comfort they offer. We featured collection of hotels for those different people whom first class service is normal rather than exceptional. Just giving us a call You have a plenty of options among boutique hotels, resorts as well as world-famous hotel chains offering all the opportunities for family vacations, romantic escapades and business meetings. Whether You need accommodation for conference or exquisite leisure, Luxury Management Club will suggest the perfect solution.
Services for Hotels
  • Strategy development: quarterly plans including seasonal adjustments, revenue and room nights projections… etc
  • Monthly sales activity report including market overview, market trends for coming month or season, competition check…etc
  • Sales calls and reservation trainings for TO/TA/MICE companies with high potential return on investment
  • Marketing, media and Internet exposure in the market (tour operator brochures, travel magazines…etc)
  • Assistance with contract negotiations and joint marketing activities
  • Events, road shows and workshops as well as exhibition attendance
  • Organization of familiarization trips and press trips 
  • E-newsletters to all stakeholders on regular basis
  • Help stakeholders become more profitable by improving speed of transfer of decision making information to finalize sale


Russian Travel Industry
1. Market Overview & Important Facts
2. Outbound Market
3. Travel Trade Structure
4. How to reach Russian consumer?
 1. Market Overview & Important Facts
  • Population 142.9 million –declining & aging
  • IMF Forecasts 2007: 
    • GDP (based on PPP per capital) USD $12,798
    • GDP Growth Rate 6.5%
    • Inflation 8.5%
  • Unemployment 7.3% (Global Insight estimate)
  • Russia is the 9th largest economy in the world and the 5th largest in Europe. GDP growth forecast from 6.2% in 2006 to 6.5 in 2007% (http://en.rian.ru/) 
  • Benefiting from rising oil prices and has been able to pay off nearly all of its international debt  
  • Middle class – fastest growing segment of the outbound travel market
  • Lowest tax flat rate in industrialized world for both individuals (12%) and corporations (28%)

2. Outbound Market 

  • Outbound travelers from Russia in 2006 reached 27,107,224 (increase of 1,9% from 2005) (http://www.russiatoursim.ru)
  • Airlines: Aeroflot, Emirates, Air France, British Airways, Swiss Air, Air Astana, Transaero...etc 
  • Visa: Russians need a visa to most of the countries with exception of few like:  Croatia,  Turkey, Thailand, Maldives...etc
3. Travel Trade Structure

In Russia there is not always a clear division between tour operators and agents. But the situation is changing and in summer 2007 new laws were implemented along with new licenses for the tour operators requiring financial guarantees.

Russian Tour Operators
Most tour operators are based in Moscow and St Petersburg. There are around 20 leading tour operators. As a rule, they are larger companies with 60-100 employees with an annual turnover ranging from $15-20 million to $120 million. As a distribution channel they use an agent network. Nevertheless, direct sales to travelers can make up to 50% of the sales.

Many tour operators specialize in single destination sales. They are middle sized or small companies (6-20 employees), with a turnover of $250,000/year. These operators might be well-known and respected among a number of travel agents, and pool together with tour operators concentrating on other destinations to shape a company’s image as a multi-destination tour operator. These small tour operators mainly deal with F.I.T. travel.

Russian Travel Agencies
Agencies are spread across Russia, but in the regions the quantity of agencies in a large city may be limited to less than 100 agents. While in Moscow there are estimated to be 4217, in Saint Petersburg there are only 327 companies holding travel agent licenses. The present trend is for small agencies and regional tour operators to work through a variety of tour operators in Moscow, especially for
business and long haul destinations.

Travel agent brands are a novelty for the Russian market. There are some major ones that have recently appeared on the market.
 4. How to reach Russian consumer?

The key sources of information when planning a trip are: travel agents, word of mouth and the Internet. Secondary sources of information are: guide books, TV programmes. Travel agents and operators are relied upon heavily by the consumer especially for visa issues.

Planning a trip and booking pattern

The vast majority of Russian business and leisure travelers will book their trip through a travel agency. This is because in Russia many banks will not allow credit card usage for booking over the Internet. A recent study by the VTsIOM polling center revealed that only a third of Russians use debit cards, while a mere five percent hold credit cards.

Russians do tend to use the Internet for comparing prices of flights and hotels but they tend to book through the travel agent. However, there are a small number of people booking hotels directly. These tend to be more experienced and independent travelers and very very limited.

Online Environment
The ETC estimates that 24% of Russians have Internet access. (2006) Amongst “Best Prospects” identified in the 2005 online survey, national websites represent the most frequently used media. 40% spend most time on this in the average week, followed by national TV channels (21%)
and other media. However, over a third are accessing international websites daily. Language barriers will have an impact here.

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