Cheapflights expanding into Russian Market

Cheapflights an Online Travel Agency (OTA) that owns Momondo developed a site for the Russian market almost two years ago which has already become its third major Market after Scandinavia and the US.

The partnership with Oktogo provides access to 70,000 hotels, many of which it has direct contracts with, as well as Russian-language property descriptions and is supported by a 24/7 Russian-language support service for users.

A statement gives some further insight into Oktogo which is anticipated to hit turnover of $30 million by the end of 2012 and the company’s business split is currently 60% internal bookings and 40% foreign.

Website visitors top 18,000 a day in high season in April and May and between eight and 10 thousand bookings a month.

It also provides some details on the online market in Russia which it says was worth $6.2 billion in 2011 and is expected to increase twofold in 2012 with one in four of every booking expected to be done online.

The statement points to moves from existing internet giants Google, with the introduction of a hotel booking service, and Yandex, which has launched an airfare search engine, as further proof of the anticipated explosion in the market.

Meanwhile, Denmark-based Momondo, says it continues to grow in France, Germany and Portugal and is also putting more development hours into ‘emotional navigation’ and what more it can do along the lines of its color-based search.

Momondo was taken over by cheapflights just over a year ago signaling its intention to establish a presence in markets not previously targeted such as Scandinavia and Russia.