Purpose -This paper aims to analyze developments in the Russian hospitality sector and present the results of qualitative research conducted at the Faculty of Economics, Lomonosov Moscow State University, in 2014-2015. Design/methodology/approach -This paper offers a general observation of the local environment and comparative analysis, and statistical analysis and content analysis are used to shed light on current developments in the Russian hospitality market. The issues are examined using the available secondary data, including relevant empirical studies and feedback from hoteliers and hotel guests. A case study method is applied to reveal the challenges facing hotel chains in Russia and to propose the most effective directions for hotels to provide services that meet world standards and customer expectations. Findings -In recent years, there has been a major growth in the hospitality sector in Russia. This paper confirms and explains the long-term attractiveness of the Russian market. Hotel chain development is one of the most promising directions for both international and Russian hotel brands. The growing role of the internet as a distribution channel is underlined, as well as long-term relationships, positive experience and positive emotions, as a way to gain loyal clients. Originality/value -The current study adds to the literature on emerging markets by presenting an overview of the main trends, challenges and factors for success in the Russian hospitality market.

Purpose This study aims to investigate the recent changes in the strategies of international hotel chains in the Russian market, as well as their role in the sustainable development of small and medium towns as prospective local tourism destinations. Design/methodology/approach General observation of the local environment, statistical analysis and a qualitative approach were used to reveal current developments in international hotel chains’ strategy in Russia, and new opportunities for a number of small towns to be embedded in the development of the Russian tourism market. The current scenarios were examined using the available secondary data, including federal statistics and relevant empirical studies, as well as case studies and personal interviews with industry experts that allowed access to respondents’ opinions and market knowledge. Findings In recent years, investment in the Russian regions has become more attractive for international hotel chains. Findings of the study add to the literature on emerging markets by presenting an overview of the main challenges facing international hotel chains in the Russian market and by stressing the facilitating effect of foreign hotel chains’ upon tourism infrastructure development in small and medium towns in Russian regions. The statistics presented, as well as key opinions of hoteliers and local authorities, contribute to an understanding of the strategies used by international hotel operators in emerging economies with reference to new evidence from Russia. Originality/value The main output of this study is that it yields a better understanding of the strategic movement of international hotel chains into the Russian regions and new opportunities to develop tourism infrastructure in small and medium cities situated in Russian regions as prospective tourism destinations.

The paper addresses the results of the first National Scientific Conference “Vladimir Road – the Path to New Technologies in Tourism” organized by the Faculty of Economics of Lomonosov MSU. The aim of the conference was to provide a professional discussion platform for experience exchange between experts and business people from tourism.