The Russian MICE services industry: Yahonty Nature Resort Hotel's view
Our experts in this industry — Gulnara Masharipova (G. M.), and Alexander Melnik (A.M.) — respectively, sales manager and marketing and sales director of the Moscow Region-based Yahonty Nature Resort Hotel — highlighted their assessments of this market and the trends in industry.
How would you briefly describe or assess today’s Russian conference facilities market?
A. M.: The history of Russia’s contemporary hospitality industry, in the traditional international usage of the term, could be traced to just 15 years ago. Therefore, if to briefly and objectively assess the current state of affairs on this market, I can say that we are still in the infancy stage of development, like a baby trying to learn how to walk. At the moment, there are at most 2-3 local asset management companies operating in this industry, which is mostly filled by Western chains. Besides, local investors, especially in the regions, are reluctant to invest in new hotels, partly because of the length of the capital recoupment periods, which, on average, take, at least, 10 years. With our climate, there are few people without countryside dachas that will be eager to go to countryside in winter in the October-November or March-April periods, when the weather is not conducive for any outdoor recreations. Consequently, the vector of customer preferences naturally shifts toward corporate events. Most companies usually go to suburban hotels for business: to conduct workshops, seminars, conferences, meetings, etc. This requires quality hotel facilities – conference halls, modern technical equipment and amenities for conducting meetings 
and presentations, and course, rooms for accommodation. Corporate clients’ priority is to have a sufficient number of standard twins, plus a delicious buffet and varied menus of coffee breaks, banquets, and the success of a business event is guaranteed, naturally assuming a high level of professionalism among the hotel’s staff. Today, our hotel offers all these services to corporate clients.
How did the industry fare during the global economic crisis, and how far has it actually exited the crisis today?
G. M.: During the crisis, most Moscow-based companies basically stopped holding multi-day events outside the capital, preferring instead to renting conference facilities in city’s hotels, where even five-star hotels were busy dumping prices — offering rooms for as low as $100-$120, with conference halls as a free bonus — in order to attract the few solvent clients. Things have only started getting better in the industry, as corporate clients’ events have now returned to their pre-crisis levels. The crisis has taught everyone to be more prudent with finances. This has led to significant changes in the structures of companies’ budgets for MICE activities, with the costs of banquets and entertainment programs now drastically reduced in favor of programs aimed at improving companies’ work effectiveness. To meet these new expectations, hotels must offer a range of services meeting a certain quality level, and this is exactly what we are doing today.
What offers are available to corporate clients in your hotel, and what are their advantages over those of your competitors?
G.M.: First and foremost, a most flexible approach to all clients' needs. Each company is unique by its standards, approach to business, and, accordingly, the way it conducts its business activities. Our task is to make each client feels his/her exclusivity. In addition, our congress capabilities are unique, at least, on the suburban Moscow hotel market. I will reiterate here that it is only our hotel in the Moscow Region that has the facilities to, for example, host a group of over 1,000 people and provide them with halls for meetings in 3-4 groups of 150-200 people and 50 negotiation rooms at the same time. And, of course, I also need to note here that, we, promptly responding to customer requirements, are constantly increasing the range of our services and their quality. In addition to serving conferences or seminars, we also offer our clients all kinds of programs, such as teambuilding, entertainment programs, etc., which are organized by our entertainment department. Besides, we have also created a special unit that handles and coordinates all clients’ events from ‘A to Z.’ And, finally, I would like to mention the absolutely fantastic location of our hotel on the banks of a lake surrounded by pine forest, just 50 km from our country’s bustling capital.
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