Market Entry into Russia for a Hospitality Group: A Moscow Subsidiary

The Challenge

A well-established hospitality group planned to expand into the Russian market, offering Russian tourists travel packages to destinations in the Eastern Mediterranean. After an unsuccessful attempt to acquire a local tour operator, it needed support to set up its own subsidiary in Moscow.

The Solution

Our Consultants prepared the market entry study, which covered:

Analysis of the Russian tourism market, with emphasis on outbound tourism to Greece and Cyprus
Analysis of the competitive landscape
Analysis and economic forecasts for the Russian economy
Organisational chart and staffing plan for the subsidiary
Calculation of the required investment
Five-year projections for Profit & Loss, Balance Sheet and Cash Flow
Calculation of Return on Investment (ROI) and payback period
Action plan with timetable and responsibilities

The project was carried out as part of our New Market Entry consulting service, following the ESGM Methodology.