The economic crisis in the hotel business
The economic crisis affects all areas of society and all areas of business. Many have already experienced economic difficulties, and some have already got used to the new reality. The hotel business, as an integral part of the economy, was no exception.
There is optimistic statistics suggesting that in Russia every year there are 10% more domestic tourists. Citizens travel more within the country. According to other data, due to the reduction of tourist traffic abroad by 40%, domestic tourism grew by 30%.
It would seem that with an increase in domestic tourism, things in the hotel business should go uphill, however, not everything is so rosy. Last year showed a loading of capital hotels by 72%. At the same time, the situation in the province is much worse: only 25% of the number of rooms are in demand. Every year analysts’ forecasts for the profitability of the hotel business deteriorate. The fact is that tourists are not the main consumers of hotel services (for example, in Tyumen, only 1.3% of hotel guests are tourists). Therefore, the growth of tourist activity in the country does not compensate for the general decline in the demand for room stock.
Hotels and hotels in non-tourist centers have always been based on business clients: those who come on business trips. The decrease in the activity of all business areas and the desire of companies to save led to the fact that the previously demanded three-star hotels began to fill up worse, since some of the guests began to be accommodated in cheaper hostels. This situation has forced many players in the hotel business to lower prices for rooms in order to have at least some opportunity to maintain their existence.
Thus, the general economic downturn in the country directly affects the situation in the hotel business. In such a difficult period, reasonable savings always win. Many mini-hotels, such as Russian apartments on Lenivka, offer business-class accommodation for the price of an economy. Staying in the center of the capital at competitive prices is possible even in a crisis.