Demand for sanatorium holidays has exceeded supply

Despite the continued overall growth of tourist flows in Russia in 2024, the dynamics of some segments will likely be worse than last year. Thus, in sanatoriums the figure may increase only by 2–3% against an increase of 6% in 2023, mainly due to a shortage of quality supply. Interest in health-improving holidays is 1.5 times higher than the capacity of resorts, and accommodation rates this year may increase by 20–30%, according to market participants.

The flow of tourists to Russian sanatoriums in 2024 may increase by 2–3% year on year, predicts medical director of the Association of Health Tourism and Corporate Health (AOT) Mikhail Danilov. According to him, such an increase is likely if current flight restrictions remain in place. If the logistics situation changes, the figure could increase by 5–10%, the expert says. According to AOT, in 2023 the flow of tourists to Russian health resorts increased by 6%, to 7 million people. The Valuevo sanatorium expects an increase in the number of overnight stays by 10% in 2024. In the Zapolyarye, Rodnik and Sochi Park Hotel facilities, occupancy is predicted to be comparable to last year.

Industry expectations for health resorts are worse than average forecasts for the market as a whole. Vice-President of the Association of Tour Operators of Russia Sergei Romashkin expects a general increase in domestic tourist flow over the year by 10–12%. According to him, now bookings in all directions, including Crimea, for the summer are 20-30% higher than last year’s levels, although in the future the growth rate is likely to slow down. Vice-President of the Russian Union of Tourism Industry Dmitry Gorin also predicts an increase in domestic tourist flow by 10–15% per year. The number of foreign tourists visiting Russia, he said, could double, to 700–800 thousand.

Mikhail Danilov associates the modest forecast for the sanatorium segment with the limited capacity of the facilities. In 2023, almost all commercial resorts offering good service were full, he says. Mr. Danilov notes that we can expect more confident market growth only after the start of new and renovated facilities in 2025–2026. President of Cosmos Hotel Group Alexander Biba says that the demand for wellness holidays has increased by 20% over the year, but there are not enough quality facilities in this area. Alean notes that at the end of last year, the demand for sanatorium tours in Kavminvody exceeded supply by 51%, in the Krasnodar Territory – by 49.2%, in Belokurikha – by 40.6%.

Managing partner of Ivashkevich Hospitality Stanislav Ivashkevich talks about the lack of space in quality facilities in general, including sanatoriums and hotels in Moscow. “Demand has increased, and the commissioning of new facilities has been virtually zero since the pandemic,” he notes. Mikhail Danilov adds that the domestic tourism market will also be influenced by the ability of tourists to travel abroad. According to MegaFon estimates, 11% more Russians traveled abroad during the New Year holidays than a year earlier.

The average cost of accommodation in Russian hotels for the coming dates, according to Sergei Romashkin, is on average 12% higher than a year earlier, for the summer – 13-15%. According to OneTwoTrip calculations, a domestic reservation for the summer now costs an average of 8 thousand rubles. overnight, up 6.7% from a year earlier. According to Yandex Travel, average prices in the Krasnodar Territory increased by 49.7% year on year, to 9 thousand rubles. per night, in the Kaliningrad region – by 32.4%, up to 8.7 thousand rubles, in Crimea – by 8%, up to 8.7 thousand rubles, in Moscow and St. Petersburg – by 54%, up to 7 thousand rubles, and by 46%, to 7.4 thousand rubles. respectively.

By summer, average prices may be adjusted as part of dynamic pricing and the introduction of supply to the market. Although the commercial director of Life Balance at the Rosa Springs Hotel, Ruslan Verdiev, admits that the increase in the cost of hotel and spa services for the summer season will be higher than today’s forecasts. He expects average accommodation rates to rise 20% this year while maintaining occupancy at current levels. The managing shareholder of the Lago-Naki health resort, Tatyana Mamontova, expects that the average check at the facility this year will be 30% higher than last year.

Stanislav Ivashkevich says that in addition to high demand, prices are affected by increased operating costs and rising costs of debt financing. In the hotel market, according to him, many properties are pledged on loans with a floating rate.

Alexandra Mertsalova