Domestic tourism is on the rise, and 2023 set a new record with 78 million trips made within the country. By 2030, this number is expected to reach 140 million. The current political climate is driving continued growth, leading to an increase in tourist destinations and heightened competition. To stay competitive, it’s crucial to stay on top of emerging trends and understand the evolving preferences of travelers. These shifts are driven by digital advancements, as well as changes in social, cultural, and economic landscapes, alongside evolving tourist behaviors. While this article highlights ten major trends, there are many more shaping the future of the industry.
Let’s begin with the information and digital sphere, where the tourism industry has been somewhat slow to adapt. There is a need to accelerate progress, making the push for automation, the integration of artificial intelligence, and advanced IT solutions one of the most significant trends shaping the future of tourism.
1. Ecosystems
The tourism market is saturated with options, making it difficult for travelers to choose, especially since modern tourists don’t have the time to thoroughly research all available offers. Consumers are more likely to choose options that are visually appealing, well-detailed, and easy to book with minimal effort. Any digital solutions that simplify this process will be in high demand.
One such tool gaining popularity is virtual reality (VR) technology. Virtual tours, for example, can serve as a preview of the trip, helping travelers decide if it’s right for them. VR tours of hotel rooms or train compartments can also assist in making informed booking decisions.
While online tours are not a groundbreaking innovation in the industry, integrating them into booking apps, smart hotel interfaces, or electronic navigation systems presents a new challenge for professionals to tackle.
Another emerging trend is the development of all-in-one applications that combine multiple functions: booking transport tickets, reserving hotels and excursions, offering virtual tour guides, and even ordering food. The push towards building comprehensive ecosystems, particularly digital ones, represents the near future of the tourism industry. Apps like Aviasales and Tu-tu.ru! are already moving in this direction.
2. Chatbots and virtual assistants
When it comes to quick solutions, chatbots and virtual assistants are essential tools. They help reduce staffing costs, addressing the workforce shortages that are increasingly common today. These technologies streamline the customer experience, making the process faster and more convenient. From trip planning and booking tours to managing services at tourist facilities and handling feedback and support, chatbots and virtual assistants have become indispensable.
3. Artificial intelligence for working with Big Data
AI plays a crucial role in gathering and analyzing consumer data, including details like who the travelers are, where they go, when they travel, where they stay, and what they purchase. By identifying tourist behavior patterns, this data helps predict demand, adjust ticket prices, and personalize offerings. Additionally, analyzing customer reviews allows businesses to better understand guest preferences and fine-tune their services. Accomplishing this manually would be nearly impossible.
4. Smart hotels
Hotels where everything is controlled through a smartphone app or a smart voice assistant – such as turning on the shower, making coffee, ordering food, adjusting the lights, or even locking the door with a QR code – already exist, though they are still relatively few in number. A notable example is ApeironSpace, a smart hotel in central Moscow. At ApeironSpace, guests can manage everything from check-in to adjusting the lighting, closing the curtains, changing TV channels, and ordering contactless food delivery, all via their smartphones.
5. Demand for 4- and 5-star hotel accommodation
Following the coronavirus pandemic and the events that unfolded in February 2022, the tourist traffic was redirected to domestic destinations, leading to a shortage of hotel apartments. Construction of economy and midscale hotels is relatively easy, while building four- and five-star ones requires effort, time and costs. People have become used to the level of comfort they experienced while traveling abroad and now seek it during their domestic trips as well. Moscow, St. Petersburg and Sochi can offer such convenience, but it is almost lacking in less popular destinations. Yet, investors are now making efforts to enter the market. In the Krasnodar Territory’s Tuapse district, work will soon begin on building three large complexes – namely, the 5-star Zolotoy Kolos recreation center, the 5-star Movenpick hotel, the 4-star Mercure hotel complex, and the 5-star Grand Hotel Agoy hotel complex, whose construction will be completed in 2028. Those seeking to enter this market should not hesitate.
6. Sustainable tourism and eco tours to non-urban areas
The aforementioned projects show that tourism is shifting further away from popular locations to rural territories. This is a great trend that allows for a reduction in price dumping and provides for remote territories’ sustainable development; the latter can be also spurred through efforts to merge tourism and other sectors of the economy.
Agritourism serves as a glaring example, with tourists traveling to farms to look after animals, enjoy and purchase locally produced food, immerse in nature, and experience rural culture and lifestyle. This serves to support and develop local agriculture, which is a priority of the state’s domestic policy amidst the current geopolitical situation.
Agritourism is becoming increasingly popular due to the growing awareness of travelers, who now engage in eco-friendly activities and exhibit pro-environmental behaviors.
Another reason for the growing popularity of rural tourism is the interest in traditional Russian culture. Agritourism provides various options for organizing history and culture events, such as themed festivals, historical events reconstruction, tours to old estates, and costumed balls. In the aforementioned Tuapse district, the work has already commenced to develop the Georgiyevsky agricultural and tourist cluster that will feature gardens, farms, apiaries, fishing ponds, tourist accommodations, and areas for active recreation. The cluster will include functional zones, Mermaid’ Sandspit, Apple Yard, and Giants’ Oak Grove, with the location names providing travelers with an opportunity to immerse themselves in local history and culture. The plans also include building wattle-and-daub houses, with thatched roofs and the use of traditional patterns, carvings, and materials.
7. The relevance of food tourism
Interest in gastronomy tourism is growing by 17% per year, RBC reported citing the statistics provided by the Alean tour operator. Trying new food & drink experience is a reason as solid for choosing a tour as beautiful nature or a convenient hotel. A trend within the trend is rethinking traditional Russian cuisine, the use of local products, and engagement in cultural heritage. Restaurateurs organize gala dinners a la Russe, and tourists visit farms to enjoy cheese, apples, and other locally grown and produced foods. Another popular tourist activity is enotourism, or wine tourism. A major player in this regards is Kuban-Vino, a winery that offers a wide scope of venues, tours, and wine-tasting options.
8. Focusing on health and digital detox
The wellness trend has won; it is evidenced by a 15 percent increase in the number of bookings at recreation centers in this year’s first six months alone. Retreats, clinics that offer therapeutic fasting programs, and hotels specializing in detox getaways are still sought-after, as well as an option for spending a smartphone-free vacation. We observe newly emerging forms of health tourism, such as sleep tourism, sauna sessions, and others.
9. Shorter, more frequent trips and more impressions
Trips are becoming shorter yet more frequent, a trend discussed by industry professionals at a TASS tourism news conference this past spring. The demand for weekend tourism is increasing, with more people choosing to travel locally or within the maximum distance of 300 km. This also provides an option of touring several locations during a vacation.
10. Traveling solo or with pets
This trend is set to rise due to a decrease in the birth rate and a change in social roles. Every third Russian citizen would like to take a trip with their pet, Gazeta.ru reported citing a study by the Kupi Bilet (Buy a Ticket) service. According to a study by Tinkoff Data, almost 60% of Russian tourists preferred traveling solo during holidays in May this year. This is a trend occurring in other countries as well.
What effect does it have on the industry? Hoteliers should consider hotel guests segmentation, such as making two separate zones by the pool for families with children and for adult solo travelers. Ensuring effective hotel soundproofing would also improve hotel guest experience. As regards pets, hotels should provide services such as dog paw washers, feeding and walking areas, and others.
By Alexandra Noy, General Director, Grand Hotel Agoy specialized real estate developer, Turbaza Volna