Just How Much is the World Cup Helping Russian Hotels?

Cities love hosting big international events. While it’s obvious that something like the FIFA World Cup or the Olympics is going to result in a considerable uptick in hotel business during the event itself, the fact is that there are long-term benefits for those hotels as well.

Moscow, for example, is expected to experience 20 to 30 percent revenue-per-room growth during the 2018 FIFA World Cup. Room occupancy is also expected to increase 8 to 10 percent during this time. However, Moscow also experienced a 6.7 percent increase in room occupancy in the four months leading into the World Cup—growth likely due to the international attention Moscow was receiving for the upcoming event.

Most people who can afford to attend events like the World Cup, the Olympics, or the Super Bowl are people who are also likely to be booking large number of hotel rooms in the future. If a city impresses these attendees during the event, that city may be foremost in mind when those guests are thinking of where to host their next business event, conference, or show. The money spent building new hotels or improving and expanding older hotels is thus an investment not in the short-term event, but in future events those improvements may attract.

One thing to keep in mind is that if an event results in a larger number of hotel rooms in a city or region, it’s possible to see a significant decrease in the occupancy rate in the region or city after the big event even if there is an overall increase in number of rooms being rented. After all, more rooms with the same number of customers will decrease the occupancy rate. It should be expected, then, that there will be adjustments in the local market in response to the new rental patterns as well as changes in the use of hotel facilities after the big event.

Mega-events like the Olympics or the FIFA World Cup have complex effects on the hotel business. A bigger city such as Moscow, Rio de Janeiro, or Dallas will likely be able to absorb more hotel rooms without much negative effect, and even be able to better take advantage of rare mega-events through the city’s continued attraction of smaller events due to the impression made on the attendees of the mega-event.

Follow us on social media for the latest updates in B2B!

Image

Latest

DisruptED in Advanced Manufacturing: The Bridgestone Story with Will Robbins Pt. 1
February 14, 2025

The automotive world is seeing some unprecedented change, and the tire industry is no exception. As electric vehicles (EVs) grow in popularity, sustainability is a major concern. With new mobility trends emerging, companies like Bridgestone are at the forefront of innovation. Additionally, with the popularity of vehicles on the road being fitted with Bridgestone or…

Read More
advanced manufacturing
Female Leaders in the DisruptED World of Advanced Manufacturing with Rachel Potee
February 14, 2025

The manufacturing industry is undergoing rapid transformation, with automation, AI, and cutting-edge technology redefining how products are made and distributed. Despite these advancements, one challenge remains: gender diversity. Women still hold a disproportionately low number of leadership positions in manufacturing, making stories of female leaders all the more essential. In fact, according to a…

Read More
Co-Sell Connection 2025
Verizon Partner Network Co-Sell Connection 2025 Kick Off
February 13, 2025

The Co-Sell Connection 2025 webinar kicked off with a warm welcome from the host, Cesar Turan. The series aims to spotlight Verizon products and solutions and provide insights from top thought leaders to help navigate the evolving business landscape. Key Speakers and Topics In this session, Verizon’s partner leadership team, including Martina the Channel…

Read More
Financial Advisor
The Must-Have Financial Advisor Tech for 2025
February 13, 2025

The financial advisory industry is undergoing rapid technological change, with AI-driven tools, alternative investments, and social-driven platforms reshaping the landscape. With rapid advancements in fintech, advisors are under increasing pressure to integrate cutting-edge technology into their practice. But with so many options, which tools are truly game-changing, and which are overhyped? A critical resource…

Read More