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Hotels leave on holiday  16.09.2009
Финансовый кризис

S-Group, owner of Sokos Hotels, is going to close two out of three hotels for winter vacation.

Sokos is going to close two out of the three hotels the Group has in St-Petersburg for winter holidays: Sokos Hotel Olympic Garden will be closed from 20 December, 2009 to 31 December, 2009 while Sokos Hotel Vasilievsky will be closed from 20 December 2009 to 10 January, 2010. The staff will be transferred to the Finnish located Sokos hotels as it is expected that the flow of Russian tourists will increase in Finland for the winter holidays. RBK Daily reports that only Sokos Hotel Palace Bridge will operate in St-Petersburg this winter.

According to the news announced yesterday by General Manager of Sokos Hotels, Yuhani Jarvenpaa, the decision was caused by the fall in tourist flow, especially business tourists. "There are basically no conferences held these days," he says. "As a result, the flow of business tourists has plummeted. To compensate this we have turned to regular tourist and designed a program for family vacation". He said that last summer Sokos hotels were 50-60% full and it was a success for the company as the forecast was even worse. Meanwhile, the city hotels are expected to be only be 20-30% full this winter.

Market players do forecast a fall in tourist flow though it will not be that bad. "I think hotels will be about 30-40% full," says General Director of Oktyabrskaya Hotel, Vladimir Ivanov. "We are actually witnessing a growth of inbound tourist and a lot of people from other regions will be able to come to St-Petersburg to celebrate New Year".


Комментарий эксперта

St.-Petersburg is the city with the strongly pronounced seasonal factor16.09.2009


The tourists' stream much lower here during the winter period, than in the summer: the difference in loading can reach 30-40 %.
It is possible to expect the situation deterioration during the autumn and winter period concerning the last year against the general decrease of the business activity. However, it is important to understand that the hotels' closing in low loading period can negatively affect both: on the company's image and on the overall performance of the hotels after their opening. The exact calculation is necessary in that situation that is less painful for the company.
It is usual practice for small and family hotels in Europe. For example, the owners of small hotels in Germany close them for a month (November) and give the vacations to the employees, and then open the hotels again. It is difficult to predict the consequences of application of the given method in the conditions of Russian validity. 
 
 
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