It’s cheaper abroad: Russian hotels pricing themselves out of the market

It’s cheaper abroad: Russian hotels pricing themselves out of the market

Many Russian citizens are planning a vacation abroad this summer, according to Russian hotel booking-tracking service Ostrovok.

Company experts analyzed room reservations for the period from June 1 to August 31 and compared the results with those of last summer.

The overwhelming majority of Russians – 64% – are going on holiday abroad this year, Ostrovok said. In terms of choosing a place for vacation, only a little more than a third – 36% – of Russian tourists showed patriotism and chose holiday destination within Russian Federation.

It is noteworthy that hotel room prices have increased both in Russia and abroad this year. The only difference is that in Russia they have risen in price much more significantly. So, if booking a hotel room abroad this summer will cost Russians 9% more, booking a hotel room at Russian resort will cost as much as 28% more.

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For example, a night in a three-star hotel in Alushta, Russia will cost three times more than in Turkish Alanya – 6 thousand rubles ($92) and 2 thousand rubles ($31), respectively.

Experts noted that the reason for such a drastic increase in the cost of hotels in Russia was the change in the VAT rate, that gone up significantly this year.