Luxury hotels remained the only notable category in experiential luxury in 2021. The category witnessed record lows in terms of hotel occupancy in hotels in Moscow and St.
Despite the challenges facing operators of luxury hotels, many of them increased their prices in 2021. Many luxury hotels have relied on their loyal customer base since the onset of COVID-19, who are unlikely to change the hotel they visit even if prices rise.
New restrictions and quarantine measures are constantly being updated with the COVID-19 pandemic being in a state of flux, with new variants carrying new threats. For example, the authorities of the Krasnodar Territory and Crimea tightened the requirements for the accommodation of tourists right in the middle of the summer season in 2021 as they responded to a rise in cases.
The recovery of experiential luxury depends strongly on the epidemiological situation in both Russia and the rest of the world, due to the main drivers for growth being focused on travel, tourism, and MICE projects – all of which have been significantly negatively impacted by COVID-19. The rollout of vaccinations across the globe offers some hope, although new variants such Omicron remain a threat with uncertainty remaining around how long it will take before COVID-19 is truly brought under control.
Luxury hotels are less likely to be strongly impacted by reduced consumer spending power in general, due to luxury categories attracting high-income consumers whose finances are typically more stable. Nonetheless, the financial impact of COVID-19 will still play a role in the future of luxury hotels, with even some wealthier consumers likely to be forced to take a more cautious approach to spending.
In order to attract customers back, players are likely to follow two main strategies. One is to ensure high standards of sanitation and to actively promote these efforts, and the other is that players are likely to optimise their costs and limit any price increases in order to present a competitive offering.
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Understand the latest market trends and future growth opportunities for the Experiential Luxury industry in Russia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Experiential Luxury industry in Russia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This is an aggregation of Luxury Hotels and Luxury Foodservice.See All of Our Definitions
This report originates from Passport, our Experiential Luxury research and analysis database.
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