NEW YORK – Russia's economic difficulties and geopolitical challenges have been well documented in recent months. The country's economy is in a major slump, with some predicting another recession. Meanwhile, Russia's military actions in Ukraine have been condemned by Western nations, leading to strong economic sanctions. Yet according to a new report by travel industry research authority PhoCusWright, Eastern European Spotlight: Russia's Online Market Springs to Life, this upheaval has had little or no impact on the country's travel industry – at least not yet. And while Russia can still be characterized as an emerging online travel market, it now shows clear signs of maturation.

Online travel in Russia has raced ahead over the past several years, and is finally catching up with its Eastern European neighbors in terms of the share of travel transactions conducted online. Online penetration sat at 19% in 2013, but is projected to soar to 33% by 2016. Russia's online travel market is growing at more than double the rate of the country's total travel market, and boasts one of the highest growth rates in the world.

"This online surge is being driven by two main factors," says Krassi Simonski, PhoCusWright market analyst for Eastern Europe. "Russians are very eager to see more of their own country – and the world beyond. They value their vacation time and are disciplined about putting money aside in order to travel. The second driver is the explosion of reliable online travel services that have become available to Russians recently, including improved supplier websites, dynamic OTAs and other intermediaries."

While unfavorable exchange rates have made it difficult for some Russians to travel abroad, this, along with a recent wave of patriotism, has contributed to a notable increase in domestic travel. The market is making great strides, but prolonged economic uncertainty could still have significant implications for Russia's travel industry in the future. Topics include:

  • Sizing and key projections through 2016 for Russia's total and online leisure and unmanaged business travel markets
  • Market size and trends across travel product segments including air, lodging, tour operators, car rental and rail
  • Analysis of the primary online booking channels – supplier direct vs. intermediaries
  • Key players and dynamics influencing the market

For in-depth analysis on the total and online Russian leisure travel markets, explore PhoCusWright's Eastern European Spotlight: Russia's Online Market Springs to Life.

About PhoCusWright Inc.
PhoCusWright is the travel industry research authority on how travelers, suppliers and intermediaries connect. Independent, rigorous and unbiased, PhoCusWright fosters smart strategic planning, tactical decision-making and organizational effectiveness.

PhoCusWright delivers qualitative and quantitative research on the evolving dynamics that influence travel, tourism and hospitality distribution. Our marketplace intelligence is the industry standard for segmentation, sizing, forecasting, trends, analysis and consumer travel planning behavior. Every day around the world, senior executives, marketers, strategists and research professionals from all segments of the industry value chain use PhoCusWright research for competitive advantage.

To complement its primary research in North and Latin America, Europe and Asia, PhoCusWright produces several high-profile conferences in the United States and Europe, and partners with conferences in China and Singapore. Industry leaders and company analysts bring this intelligence to life by debating issues, sharing ideas and defining the ever-evolving reality of travel commerce.

The company is headquartered in the United States with Asia Pacific operations based in India and local analysts on five continents.

PhoCusWright is a wholly-owned subsidiary of Northstar Travel Media, LLC. (116 32nd Street, 14th Floor, New York, NY 10001 United States).