Volatility and uncertainty continue to remain key features of demand for hotel services

Author: Edwards Johnson Section: Hotels & Restaurants Guide

Issue: October 2010, Vol. 5, No. 9

Tags: Slow market recovery

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Stunted Growth & Recovery

Jones Lang LaSalle has released the results of its review of the performances of Moscow hotels in the first half year 2010, with company’s Executive Vice President Marina Usenko noting that demand has yet to return to pre-crisis level. “Market recovery is being hindered by the inertial growth nature of hotel business, which is directly dependent on the states of the Russian and global economies.”

She further noted that volatility and uncertainty have continued to remain key features of demand. “There are, however, some positive tendencies, such as an upturn in demand for overnight stays and additional services, where demand fell by 30% in 2009.”