Tourists were collecting celestial bodies, presumably stars.

Tourists were collecting celestial bodies, presumably stars.

Riding the Wave of Domestic Tourism: Soaring Costs and Popular Destinations for May 2025

Heads up! The upcoming May holidays are shaping up to be a hotbed of tourist activity, driving a significant increase in the demand for top-tier accommodations across Russia. This surge has led to an average nightly rate jump of 19% year-on-year, as reported by "Ostrovok," with rates soaring to 6,300 rubles during the May 1-11 period.

It's all about supply and demand, as evidenced by a 20% year-on-year increase in hotel bookings during the same timeframe. Yet, even with this rise in demand, Russia still holds a dominant position in domestic travel, with around 70% of tourist trips happening within the country.

Are you anticipating a getaway to Crimea, Dagestan, or small towns near Moscow? Get ready to loosen those wallets! Notable increases in demand are being seen in these areas, making your dream vacation a little pricier than expected.

So, what gives? Well, the ever-increasing popularity of luxurious five-star hotels appears to be a significant factor. "Ostrovok" points out that interest in such accommodations has skyrocketed by 35% year-on-year, while their supply has only grown by 18%. What's more, high-end properties are cropping up in smaller cities as well.

But don't worry! Five-star hotels account for only 3% of bookings. If you're looking for more budget-friendly options, around 54% of guests opt for apartments and star-less hotels.

Wondering about foreign destinations? Despite the strengthening ruble this year, the diminutive number of working days between holidays has led to an uptick in the number of both domestic and international trips.

With travelers starting their holiday planning as early as winter, it seems that Russia is set to experience another exciting wave of tourist activity this May. Business trips have also seen a significant increase during this period, with "OneTwoTrip for Business" reporting a 61% year-on-year rise in bookings for combined business and leisure trips.

Stepping Up the Game: Domestic Accommodation Providers

Demand for May getaways has been soaring, and accommodation providers are put to the test to meet the needs of eager travelers. For instance, Alexander Biba, President of Cosmos Hotel Group, anticipates an occupancy rate of 55-56% in his network this year. In some regions, the figure is even higher! For example, in Volgograd, it's expected to reach 92% during May 8-11, and on the Altai, it's projected to increase by 17 percentage points to 75%.

The "Mantera" Group also reports a 10-15% year-on-year increase in the price of accommodation in coastal hotels of their network. "Vasta Hotel Management" hotels are averaging 8,300 rubles during the May 1-11 period, a 10.1% year-on-year increase.

So, where are the hottest domestic destinations for organized tourists during the May holidays? According to "Sletat.ru," the Krasnodar region leads the pack with 29.7% of bookings, although this figure has dipped by 9 percentage points year-on-year. Following closely are St. Petersburg (12.9% of sales), the Kaliningrad region (10.5%), and the Caucasian Mineral Waters (10.4%).

However, the spotlight this year has been on destinations like Crimea, Dagestan, and small towns near Moscow, thanks to a surge in interest from travelers. Even remote towns like Rybinsk (up 72% year-on-year), Pereslavl-Zalessky (up 50%), Uglich (up 48%), Vyborg (up 31%), and Suzdal (up 25%) are seeing a surge in bookings for the upcoming holidays.

Navigating the Rising Tide of Travel Costs

While specific data about May 2025 holiday pricing isn't readily available, some contributing factors can be inferred:

1. Shifting Market DynamicsWith services like Booking.com and Airbnb unavailable, travelers are increasingly relying on domestic platforms like Zenhotels. This consolidation may lead to less price flexibility due to reduced competition and foreign card limitations.

2. Currency FluctuationsThe ruble's volatility (currently ~90 rubles per euro) complicates pricing strategies for domestic providers, potentially leading to price hikes to hedge against further depreciation.

3. Seasonal Demand SurgesMay holidays traditionally drive higher domestic travel, with airport advertisements like Smartavia marketing routes such as Moscow-Murmansk (2,730₽) and St. Petersburg-Arkhangelsk (2,550₽) in late April/early May. Prices are expected to rise closer to peak dates due to increased demand.

4. Limited Affordable AccommodationMid-range hotel rooms in cities like Moscow start at 4,500₽, and reduced hostel availability (from 600₽/bed) during holidays could push travelers toward pricier options. Competitively priced domestic flights (e.g., Kaliningrad-Moscow from 1,830₽) might offset some costs but not accommodation expenses.

5. Operational ChallengesWestern payment restrictions and reliance on intermediaries for bookings may increase administrative costs for providers, indirectly affecting consumer prices.

1. As the May 2025 holidays approach, travelers may find solace in Moscow's domestic accommodations, despite an expected average nightly rate increase of 20% compared to the previous year, reaching approximately 6,300 rubles during the May 1-11 period.
2. In contrast to the rise in average rates, hotel bookings are predicted to show a decrease in 2025, possibly due to the increasing popularity of alternative housing options like apartments and star-less hotels, which account for around 54% of bookings.
3. With the ongoing trends in the finance sector and lifestyle choices, technology continues to play a significant role in the travel industry, as evidenced by the growing popularity of digital booking platforms like Zenhotels, which may lead to less price flexibility due to reduced competition and foreign card limitations.
4. Keeping up with the travel demands of the future, accommodation providers in Russia are expanding their offerings, with high-end properties cropping up in smaller cities, potentially driving up the average price of accommodations.
5. Looking beyond the borders of Russia, an uptick in both domestic and international trips is projected for May 2025, despite the strengthening ruble and the diminutive number of working days between holidays. This shift in travel patterns may reflect changes in the average traveler's financing, lifestyle, and technology preferences.

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