The hotel market all over the world has been on a very sharp decline, and this does not leave out the hotel market in Moscow. The first quarter of 2009 has shown a big downturn when compared to the bad months it had in the forth quarter of 2008.

Studies show that the main demand for Moscow hotels now pretty much falls on the corporate business segment. Now that companies are having to cut back on travel costs, Moscow is seeing a huge drop in the demand for their hotels. Moscow hotels now have to look for another way to bring in more customers or face another loss in the second quarter of 2009.

Moscow hotels say that they are preparing for the hardest year that they have had since the 1998 crisis. Many of the hotels say that they are reviewing their operating costs and trying to find a way that they can cut down. Moscow would like to be able to attract more clients by offering great discounts and special offers. On top of this, the ruble has seen a lot of devaluation compared to the US dollar and the Euro. This has lead to a very hard currency rate drop, which can not be compensated by increasing ruble pricing.

However, on a positive note, the currency exchange does make the ruble more attractive to foreign guests who will get more bang for their buck. Also, the general lack of supply has allowed hotels to push rates and profitability to levels envied throughout major global cities.

Subscribe for free and recieve the latest Self-Catering-Breaks news and stories
Filed under Holiday News

• Moscow Hotels are the Most Expensive in the World

This entry was posted on Monday, April 20th, 2009 at 10:12 am and is filed under Holiday News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.