How is the Moscow hotel business adapting to new realities?

How is the Moscow hotel business adapting to new realities?


A trip to Moscow is not necessarily tourism and sightseeing; many come to the capital for business, business meetings or just for the weekend. Whatever happens, Moscow has been and remains one of the most beautiful cities in the world. Despite the difficult political situation, this summer Moscow hosted guests from the Netherlands, Germany, Sweden, the USA and Austria. China, Iran and Israel are also among the leaders in the growth of the tourist flow. On average, guests stayed in Moscow for 6.5 days. Travelers from Jamaica, Tanzania, Peru, Denmark, Austria, Benin and Hong Kong spent the longest time - about two weeks - in the capital.

As Moscow Mayor Sergei Sobyanin said, commenting on the situation in the hotel sector of the capital, 9 million tourists visited the capital in the first half of 2022 (from January to June), which is almost 8% more than in the same period last year. Among the leaders are tourists from St. Petersburg, Krasnodar, Nizhny Novgorod, Ryazan and Kaluga. The flow from Rostov-on-Don increased by 32%, by a third from Yekaterinburg and by a quarter from Kazan, Perm and Nalchik.

Guests from the regions spend about 7 days in Moscow, and here the question arises: where to stay? The departure of large international hotel chains from Russia caused less resonance than the departure of clothing manufacturers (for example, H&M, ZARA, Uniqlo and others), perfumes or the banal McDonald's, but it cannot be ignored. Our country was left, for example, by Marriott and Crowne Plaza, and the question arose before hoteliers - how to maintain the sympathy of customers? Everyone chooses their own path.

For example, Elena Borisova, general manager of the Plaza Garden Moscow WTC hotel, who previously worked under the Crowne Plaza brand, shared her experience.

Elena Borisova, general manager of the Plaza Garden Moscow WTC hotel. Photo: PJSC WTC





“Today, when international hotel brands have begun to leave the Russian market, we are faced with the question: how to continue to exist? It turned out to be somewhat easier for those who managed the business on their own. Therefore, there was a request to create our own high-quality brand - you don’t need to look for what used to be a networker, you need to work for your own brand. Loyalty must be your own - after all, hotels within chains are also very different. Loyalty is achieved by the level of service and the fact that an independent hotel can give even more than one that operates as part of a franchise. The decision to rename the hotel was made almost immediately when it became known about the departure of the Crowne Plaza brand - and then it turned to develop the Garden concept, that is, to rely on greater comfort and environmental friendliness,” said Elena Borisova.

According to her, the new concept of the name Plaza Garden involves a lobby area with lots of greenery and fresh flowers. Although the hotel is located in an urban area within walking distance of Moscow City, the green area of ​​the World Trade Center smoothly turns into the Krasnaya Presnya park and the newly landscaped Moskva River embankment.

An individual tourist is very sensitive to quality issues, to existing standards - that is why many choose chain hotels, in which everything is predictable. Now that the rules of the game have changed, the level of quality simply has to be maintained.

What can be done in such a situation? For many, the most important criterion when choosing a hotel is breakfast. Chain hotels always offer a quality breakfast, which means that you need to keep it even after the departure of the global brand franchise. Guests should not experience any change in the quality of the coffee, the taste of the croissants, or anything else.

The next important aspect is the cosmetics offered by the hotel. For many tourists, tiny shampoo bottles are a symbol of relaxation in and of themselves - and are associated with their favorite hotel. Recently, due to increased attention to environmental issues, more and more hotels have switched to the format of large dispensers (so as not to throw away hundreds of empty bottles every day), however, despite the departure of brands with their requirements for specific cosmetics manufacturers, its level should be maintained. Although changes are possible - for example, if cosmetics are the same everywhere in chain hotels, then an independent hotel can support import substitution and offer Russian-made products (while maintaining the level of quality). The same goes for the choice of mattresses, pillows, bathrobes, towels and other little things that make an ordinary hotel a favorite hotel.

“The example of cosmetics is very clear. We discussed more interesting alternatives, but the brand was interested in unifying the offer regardless of the preferences and convenience of the hotel. Now, of course, we even got some advantage – we can make decisions on our own. Although, of course, there will be more responsibility, ”continues the story of Elena Borisova.

New tourist does not book in advance

The average hotel occupancy rate, according to Moscow Mayor Sergei Sobyanin, in the first half of 2022 was 55% - this means that there are almost always free rooms, and that hotels still have to compete for a client: if he doesn’t like something, he just will go to another place.

In the first half of 2022, the cost of living in hotels in Moscow increased by 7% compared to the same period last year, according to analysts from the consulting company CORE.XP. According to them, the average cost of a day in a Moscow hotel today is 7,900 rubles. This is about 6% more than it was before the pandemic (in 2019).

“I must say that a noticeable trend today is that the client makes a spontaneous decision about trips, without prior booking, the general situation in the last two years was favorable - 100% occupancy in hotels was rare, but now it is increasing, for example, thanks to business groups. We still recommend our clients to book in advance - in this case, the rate will be better, and the hotel will have the opportunity to prepare for the arrival of the guest. If he has already rested with us and, moreover, left some comments before or after the arrival, then we can also work all this out in advance, providing even more comfortable conditions upon check-in,” continues Elena Borisova. In this case, little things can support the sympathy of the client - for example, the hotel's own loyalty program, thanks to which you can qualify for early check-in, late check-out, or at least a small discount for regular customers.

According to experts, it is not entirely correct to talk about changing the request today: the preferences of guests have not changed now, but during the pandemic - now they are just quite stable. Guests come from Uzbekistan, Kazakhstan, Turkey. As Vadim Prasov, Vice President of the Federation of Restaurateurs and Hoteliers, noted earlier, the summer season of 2022 in Moscow cannot be called a failure.

“In general, the summer in Moscow is quite pleasant, and a certain number of people go to Moscow for the purpose of domestic tourism. But we are not a resort, there is no sea. There are more tourists in summer, but this summer these tourists are mainly from the regions of Russia, ”the expert is quoted by the media as saying.

Another difficulty that absolutely all hoteliers are now facing is the departure of the international booking system Booking, which has not yet been fully replaced by any Russian counterparts. Therefore, hotels need to rely on direct bookings.

In Moscow, tourists make rather simple requirements for hotels - they prefer to live inside the historical center, strive for a decent level of service, and, taking into account these factors, they most often vote in rubles. A great hotel can enhance and complete the tourist experience – and that is the challenge that large hotels have for themselves.

Photo: PJSC WTC





Waking up with a view of the spire of one of the skyscrapers, the Moscow River and the towers of Moscow City is a great addition to your vacation experience, the Plaza Garden Moscow WTC hotel is sure. And with the help of Moscow hotels, you can learn more about the history of the capital. For example, the hotel lobby is decorated with a unique Russian Souvenir clock. This clock is a continuation of the old tradition of clocks with performances: every hour, announced by the crowing of a rooster, begins with a performance with the participation of fairy-tale characters. The Artistic Fund of the USSR worked on the watch design. The music for the clock was selected by the composer Alexandra Pakhmutova, and the cock's cry is real - the voice of a rooster was recorded in one of the Ryazan villages.

REFERENCE. This year, grants are provided for market participants who implement tourism projects in the field of business and organized youth tourism. Up to 10 million rubles to cover expenses can be received by a company that organizes conferences, congresses, forums and business meetings in Moscow, as well as events for young people (gatherings, competitions and festivals). During the first qualifying round, 25 applications for 50 million rubles were approved. The second stage started on July 20 and will last until September 23. Also, from June 1, 2022, all hotels received an important benefit - exemption from VAT until 2027. This is an operating mechanism that allows you to keep the cost at the same level, but not to work at a loss.



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