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Russia Online Accommodation Market Size (2024 - 2029)

The Russia Online Accommodation Market is experiencing significant shifts in its market size due to geopolitical changes and restrictions on foreign platforms. The invasion of Ukraine has led to a decline in traffic to international accommodation websites, prompting users to turn to domestic booking platforms. This shift has resulted in a notable increase in the market share of Russian companies, as they capture the demand previously held by foreign entities. The market's growth trajectory is influenced by these dynamics, reflecting the broader impact of economic and political factors on consumer behavior in the accommodation sector.

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Market Size of Russia Online Accommodation Industry

Russia Online Accommodation Market Summary
Study Period 2020-2029
Base Year For Estimation 2023
Market Size (2024) USD 3.95 Billion
Market Size (2029) USD 5.12 Billion
CAGR (2024 - 2029) > 4.00 %
Market Concentration Medium

Major Players

Russia Online Accommodation Market Major Players

*Disclaimer: Major Players sorted in no particular order

Russia Online Accommodation Market Analysis

The Russia Online Accommodation Market size is estimated at USD 3.95 billion in 2024, and is expected to reach USD 5.12 billion by 2029, growing at a CAGR of greater than 4% during the forecast period (2024-2029).

Russia’s economy is facing drastic changes during its invasion of Ukraine. It also affected the tourism market and summer destinations. Since 5th March 2022, the number of users on foreign company websites for accommodation and short-term rentals fell sharply because of limitations for the Russian market.
The number of visitors to TripAdvisor’s website in March decreased by 19% compared to February 2022, while Booking.com traffic decreased by 18%. Agoda and Airbnb decreased by 15% and 12%, respectively, and Trivago witnessed a huge fall of 56%.
Users have shifted to Russian booking platforms for accommodation. In the period from March 5 to 10, the number of users on bronevik.com quadrupled, while traffic on ostrovok.ru tripled. Demand was created for companies kvartirka.com with a 59% increase, sutochno.ru with 38% and 101hotels.com witnessed a 28%.

Russia Online Accommodation Industry Segmentation

Online accommodation is a popular method for booking hotel rooms, travellers can book rooms online by using online security to protect their privacy and financial information and by using several online travel agents to compare prices and facilities at different hotels.
Russia online accommodation market is segmented by platform type (mobile application and website), and by mode of booking type (third party online portals and direct/captive portals). The report offers market size and forecasts for Russia Online Accommodation Market in value (USD) for all the above segments.
By Platform Type
Mobile Application
Website
By Mode of Booking
Third Party Online Platforms
Direct/Captive Portals
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Russia Online Accommodation Market Size Summary

The Russia Online Accommodation Market is experiencing a transformative phase, driven by geopolitical events and shifting consumer behaviors. The invasion of Ukraine has significantly impacted the tourism sector, leading to a decline in traffic on international booking platforms such as TripAdvisor, Booking.com, Agoda, and Airbnb. This decline prompted a shift towards Russian booking sites like bronevik.com and ostrovok.ru, which saw substantial increases in user traffic. Despite the challenges, the market is poised for growth, with an increasing number of Russians utilizing the internet for travel bookings and a notable rise in mobile reservations. The preference for cash payments remains strong, influencing the payment options offered by online platforms.

The market landscape is characterized by the presence of both international and domestic players, with Booking.com leading in market share. The acquisition of Bronevik by Mobile TeleSystems highlights the strategic moves within the industry to expand market presence and innovate services. While international companies like Airbnb have suspended operations, domestic platforms are capitalizing on the opportunity to strengthen their foothold. The market is expected to grow steadily, supported by technological advancements and a focus on catering to the unique preferences of Russian travelers.

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Russia Online Accommodation Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increase in the online travel agencies in Russia

      2. 1.2.2 Due to factors including digital trends and technical improvements, the online booking industry is undergoing significant transformation

    3. 1.3 Market Restraints

    4. 1.4 Market Opportunities

      1. 1.4.1 Global tourism is expanding, which is driving market expansion.

      2. 1.4.2 Increasing expansion in the travel and tourism sector and encouraging government initiatives

    5. 1.5 Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Insights on Key Trends and Technological Innovations in the Market

    7. 1.7 Impact of COVID-19 on the market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Platform Type

      1. 2.1.1 Mobile Application

      2. 2.1.2 Website

    2. 2.2 By Mode of Booking

      1. 2.2.1 Third Party Online Platforms

      2. 2.2.2 Direct/Captive Portals

Russia Online Accommodation Market Size FAQs

The Russia Online Accommodation Market size is expected to reach USD 3.95 billion in 2024 and grow at a CAGR of greater than 4% to reach USD 5.12 billion by 2029.

In 2024, the Russia Online Accommodation Market size is expected to reach USD 3.95 billion.

Russia Online Accommodation Market Report Snapshots

Russia Online Accommodation Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)