Russia's leading tour operator eyes promising future growth in China
Positioned as one of the world's fastest-growing economies outside India and China, Russia's economy is expanding. According to the Ministry of Economic Development of the Russian Federation, in January-September 2024, the country's GDP grew by 4.2 percent. The travel industry has almost returned to pre-pandemic levels, and alongside the domestic travel surge there is a substantial increase in tourism between Russia and China, but its market potential still remains untapped.
Benefiting from the growth in the tourism sector in Russia, FUN&SUN has been growing dynamically and now dominates the local tour operator market. The company operates in several dozen destinations, and it adapts strategies to ensure stability and growth. Customer response is essential for FUN&SUN, so every week its products are enhanced based on consumption feedback. In line with its customer retention strategy, it was the first Russian company to refund in full for trips cancelled because of COVID-19. In addition to its customer-friendly approach, the company is open to new partnerships in China, primarily with airlines and tour operators. Reliability is the company's priority for both customers and partners, and its solid reputation contributes to improving Russia's business standing in China.
While it is business traffic to China that currently prevails, FUN&SUN is set to boost tourist traffic. With the numbers on the rise in 2024, it sees the market as having huge potential and able to capture new opportunities. "Russian tourists should discover China, its history, arts, and even food culture, and I mean not only big cities, but also less obvious destinations. We need to make China more affordable and attractive to drive demand. Some things should be done at the government level, and we could introduce cheaper tariffs like for other countries. We also need familiarization tours so that professionals could learn more about the country," said Taras Demura, chairman of the board of FUN&SUN.
As for partnerships, FUN&SUN is willing to cooperate at all levels to tap into the Chinese market faster. "We are looking forward to cooperation with Chinese tour operators, airlines, and regulators, both ways. The best product usually comes as a synergy, and we should all invest in the future," said Demura. For partners, the company extends the feedback standards applied to customers, facilitating their adaptation to local market characteristics and delivery of better products. It welcomes any initiatives that improve Russia's business image in China to foster development of the company and the tourist sector as a whole.
The Russian travel industry fits perfectly into the economy with its digitalization, technological advancements and transparency. After focusing on domestic markets during the pandemic, Russian and Chinese companies seem to be eager to go international and their cooperation may succeed. With Russia's turn to the East, this strategic partnership could be a win-win situation where all participants of the value chain develop products on a reciprocal basis. Both markets are positioned for future growth, and new alliances are key for private firms and industry sectors to seize the opportunities.
