In terms of seasonality the main vacation periods for Russians are over Christmas and the New Year.
As to tour operators and travel agencies, during Soviet era there were only 3 travel agencies in Russia all of which were stated‐owned. Today there are over 12,000 travel agencies and 5,000 tour operators, all of which are privately owned
The main sources of information for Russians when planning a trip are the Internet, word of mouth and travel agents
It is often agreed that ,given the importance of the customer/employee interaction to the service encounter. Human resources management has a key role to play in securing high levels of service quality – Haynes and Fryer (2000).
Having Interviewed Russian and Foreign managers in Russian Joint venture firms , the study found out “Managerial knowledge and practices are contextually embedded and reflect attitudes, values and norms of the society where they have been developed and might therefore be limited in their applicability elsewhere.
CURRENT ISSUES FACED BY HOTEL INDUSTRY IN RUSSIA
HUMAN RESOURCES- SPECIFIC ISSUE FACED BY RUSSIA
"We may have a good hotels... but at times we are lacking the one thing that is most important - hospitality,”. "We need to smile more, lay beds and decorate rooms properly. Attention to detail is what we need." Alexander Radkov, deputy head of the Russian Federal Agency @ WTM London 2010.
Thomas Noll, General Manager of Grand Hotel Europe in St.-Petersburg : “It has become a challenge to attract and retain non-management employees, due to the booming economy in most industries. Many new investments come into the city; all of them need employees and where better to find educated staff with foreign language knowledge than in a hotel?”
“ Almost nobody thinks of hospitality as a career, most people are just in it for a short-term, to earn a living.” Maria Bek, HR Director at Park Hyatt Ararat in Moscow
With Huge development of hotels in Moscow and other major cities it has become a huge challenge to source trained staff and even untrained staff to do the basic work in hotels - Kamel Chaieb,General Manager of Novotel Moscow City Centre
Russian working force have serious motivational issues and language barrier ,as they do not even speak proper Russian,since they come from the closest provinces such as Ukraine, Belarus, Moldova, Tajikistan, Uzbekistan, Kazakhstan
Immigration Policy of Russia is not Helping either,where it wants to restrict foreign work force
At the same time , international hotels, which do not want to go the typical route of many Russian enterprises who hire immigrant workers “unofficially”, are struggling because of the bureaucratic difficulties of quickly obtaining work permits for their line employees.
MARKET ENTRY OF INTERNATIONAL HOTELS IN CONTEXT TO THE ISSUES THEY FACE
Russian legal entity in the form of a Limited Liability Company ( LLC ), a public or a private Joint Stock Company ( JSC ), or a Partnership,Private joint stock company (PJSC) ( JOINT VENTURE IN HOSPITALITY TERMS ).
JVs, in Russia must deal with a weak infrastructure, an unstable environment, constantly changing legislation, corruption, and bureaucracy.
The Pioneer in International Hospitality into Russia was Radisson Hotel of the carlson group with Joint venture of Mosintour , Sochi Municipal Authority, Russian Joint Stock Company GAZPROM .
Whit Bread which owns Costa Coffee opened its 1,000th outlet in Moscow on March 2008 , its first in Russia under a joint venture with Rosinter Restaurants that aims to launch 200 Russian Costas over the next five years.
West has always thought in all aspects including management ,their way to be the right way.But understanding of culture and acting accordingly will only help in the success of both the firms involved in the business.
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