DESPITE the dramatic plunge of the Russian rouble in recent months, business travellers from the world’s largest nation are still travelling to Asia due to its affordability, according to Russian buyers interviewed at IT&CMA this year.
Svetlana Lysenkova, director of Moscow-based Beneluxclub, told TTG Asia e-Daily that outbound corporate travel bookings this year had climbed 10 to 20 per cent against last year.
Lysenkova said: “It is just so much cheaper to host events and incentives in Asian countries like Thailand, the Philippines and Vietnam compared to Europe.
“The value of the rouble did drop but companies are still travelling, and all the more now do they need to find destinations that are cheap and Asia is a good option.”
Although the weak rouble meant pricier airfares for overseas flights, Lysenkova said that had little impact on clients’ overall expenditure, as the low costs of hotels and activities in Asia were helping to keep budget within control.
Outbound corporate travel bookings have also escaped unscathed from the rouble’s tumble for Korotkikh Oxana, deputy director of Altair Travel in Moscow.
“It is a lot more expensive to hold events in Europe so clients will always opt for Asia,” Oxana said, adding that Bangkok is her top-selling destination.
“There are very good hotels and meeting facilities in Bangkok and they are very affordable. There are also good leisure activities to go along with corporate events,” she added.
Explaining the Russian market’s enduring love for Asia, Andrey Sliozberg, director of Actis Group in St Petersburg, said: “Russians are big on exotic and cultural destinations, and Asia provides that.”
He remarked that Chiang Mai, Phuket and Koh Samui are some of their favourites.
While his clients remain keen on Asia, Sliozberg admitted that a weakened buying power meant that Russian companies will have to work with tighter budgets. As a result, he has to negotiate with suppliers for competitive deals.
“It is also possible to provide four-star hotels instead of five-star ones should the clients have a limited budget, and we can always eliminate some of the extra activities to bring down costs,” he said, stressing that the rouble fall is not a big problem and Russian companies are not quitting their trips.
Despite the buyers’ positive sentiments, Thai sellers at the tradeshow said business from Russia had been severely dented as a result of weaker buying power.
Thidarat Prapasrang, assistant director of sales with Outrigger Laguna Phuket Beach Resort, said the Russian market had declined by at least 30 per cent this year, compared to 2014.
“It has affected our resort very much because Russia is our top source market and groups often stay up to three weeks,” Thidarat said.
To encourage the Russians to keep coming, Thidarat said the resort is now developing exclusive room promotions just for the market.
Phuket Panwa Beachfront Resort’s senior sales manager for MICE, Chaiyapat Intanin, has also seen plunging traffic from Russia. Hence, as of this year, the resort has removed restrictive conditions around corporate bookings, such as minimum-night stays and compulsory gala dinners.
Chaiyapat added: “We want to be as attractive as possible to get the Russians to come back to the resort.”
Read more reports from the ground in our IT&CMA and CTW Asia-Pacific 2015 Show Dailies.
