Moscow sets a bar for Kazan hoteliers for the Mundial

Rent a room for up to 85,000 rubles

A resolution signed by the Chairman of the Government of the Russian Federation Dmitry Medvedev appeared on the site on 14 February. It fixes the maximal price for hotel services in the regions of the Russian Federation that will host competitions of the 2018 FIFA World Cup and 2017 Confederations Cup. The fixed prices will take effects one month before the date of the first match and will be in abeyance one month after the last game. So, the most expensive room in hotels of Kazan — suite — will be 85,000 rubles/night during the WC.

In general, depending on category of room, the highest price for five-star hotel rooms are from 85,000 to 27,000 rubles; four-star hotel rooms — from 53,000 to 15,500 rubles; three-star hotel rooms — from 24,000 to 9,000 rubles; two-star hotels offer rooms from 11,300 to 6,300 rubles and one-star ones — from 10,200 to 5,900 rubles; no-star hotel is from 6,800 to 3,4 rubles. Today the most expensive, that is to say, Presidential suites are in Korston and Mirage. The price for a room is 30-35,000/night. Room rates in four-star hotels vary from 15,000 to 4,000 rubles and in three-star hotels — from 8,000 to 1,200 rubles. Consequently, the cost of accommodation by the World Cup might increase 2,5-3,5 times.

Maximal rates for the Confederations Cup will be lower by 5-6% on average. It should be noted that this document sets only the highest bar of different room rates. Meanwhile, hotels have the right to sell them for a lower price.

Hotels of St. Petersburg turned out to be more expensive than the hotels in Moscow, while Krasnodar had higher prices compared to Yekaterinburg

Each region has its own bar set. According to the document, room rates were based on the cost of hotel services on a territory of the region in 2015, the indicator of the forecasted inflation rate and the coefficient that reflects the growth of demand on hotel services during spectacular and mass events. For instance, in Moscow, the most expensive five-star hotel room will be 650,000 rubles, a room in a three-star hotel is 28,000 rubles, and a no-star hotel room will cost a maximum of 7,000 rubles. The cheapest room can be compared with Kazan — 3,800 rubles. It is surprising that St. Petersburg took the lead concerning the most expensive rooms for the guests of the city. The highest five-star rooms are from 700,000 rubles, three-star rooms cost 30,000 rubles. A night in the most expensive one-star hotel is up to 7,200 rubles, while the cheapest room's bar is 4,600 rubles.

In price terms, Kazan could be compared with Krasnodar Krai: the highest room price is also 85,000 rubles, the lowest — is 3,000, but two- and three-star rooms will be a bit lower than in Kazan. So, in Nizhny Novgorod, the most expensive room will be 70,000 rubles, in Samara — 75,000. But as for the hotels that have a few stars or don't have them at all are more expensive in comparison with Kazan prices. The simplest room in Nizhny Novgorod will make up 4,200 rubles. The same room rate was found in Samara. Hotels in Rostov, Sverdlovsk and Kaliningrad Oblasts will be even cheaper. The most reasonable price is found in the Mordva Republic: the most expensive 'suite' won't exceed 26,400 rubles, and a no-star hotel room will be a maximum 2,600 rubles.

The prices stated in the document is applied to all hotels of a city. Even if a hotel signed a partnership agreement with 'trade intermediates or coordinators on hotels', rooms are not to exceed the prices mentioned in the resolution.

State management of hotel market in Kazan has been applied for the first time

The government of Russia recommends the regional authorities or, more precisely, 'bodies of the executive power of the regions of the Russian Federation in tourism', to inform all hotel owners about ' state regulation of the hotel service rates'. 'The bill adopted was discussed with owners of hotels that were designated beforehand for accommodation of the constituent groups of the WC. These prices were agreed taking into pricing during the seasons of high and low inflation rates,' the Deputy Chairman of the State Committee of Tatarstan on Tourism Ekaterina Barabanova. According to her, the fixed prices were agreed with the market participants and the government of the republic. But she did not say whether all hotels acquainted with the new rules during the sports events.

It should be reminded that the previous large-scale sports event in Tatarstan were held without any market regulation. But fixed prices were included in the terms of contracts with hoteliers: in 2013, the Directorate of the Universiade signed agreements with hotels on room reservation for participants and guests of the Students Games. There were not any advance payments, but there was a requirement to fix the prices for accommodation. All in all according to a research of the Hotel Reservation Service (HRS), the local hotels did not manage to provide a 100% occupancy during the whole term of the competitions. Even on the days of the opening and closing ceremonies the occupancy did not exceed 80%. There some days when the occupancy of the hotels that had reservations for sports delegations was 20%. Last year, hotels also signed agreements with the City Hall on the reservation during FINA World Championships. The administration took into account the experience of the Universiade and made 40% advance payments. This system together with a full occupancy of the hotels during the competitions yielded a fruit: the Water Championships did not cause a mass indignation of hoteliers. However, here it can be remembered how Edelweiss Group disputed with the City Hall of Kazan about the fact that the hotels of the Group were underpaid concerning the obligatory advance payment but they had to keep a big number of rooms reserved for guests of the 2015 FINA Championships.