Middle Class Abroad

Due to the start of the holiday season mass media publish the results of a survey on Russian consumer behavior during vacations. The experts of Citibank and those of the IRG research agency analyzed the data related to credit and business card holders of the bank in 2007, as well as the data furnished by Kuda.ru, a large network of tourist agencies.
According to the official data, over nine million Russians visited foreign countries in 2007, mainly as tourists. The consumption activity of Russian tourists abroad is not distributed evenly across the year. The most gushing cash receipts were registered in January when the greatest amounts were spent – 60% above the annual average. Most probably, this is because a significant part of transactions done by way of bank cards abroad in the end of December (during the season of New Year gifts and festivities) are technically registered in accounts in the beginning of January. More and more Russian people spend their New Year holidays far away from home. It is noteworthy that May is the second spending-heavy month for Russian tourists, while March is the third, which is again due to a long period of holidays used by the Russians for their trips abroad and shopping.
The traditional holiday months – July, August and September – are not as conspicuous on the background of other months as one might think. May be this is because major tourist routes in summer months lead to traditional sea spas, whereas Western Europe is more popular in January, March and May. There are four countries – Italy, France, the U.S.A. and Great Britain – which are far ahead of others by the number of purchases made by Russian bank card users holding both debit and credit cards. It is these countries that happen to be the most favorite places where the Russian love to buy. The leadership of Italy, France and Great Britain, besides their unconditional attractiveness as tourist routes, may be explained by the highly developed fashion industry. The top place occupied by the United State was no surprise as well. The significant strengthening of the Russian rouble toward the U.S. dollar added some more attractiveness to purchases made overseas. In summer, Spain and Turkey stay above any competition, while in winter it is Austria and Switzerland. Finland turned to be much more popular among Russian visitors, especially among those living in the North West of their country. The United Arab Emirates have long become one of the best world’s spas and shopping centers favored by many well-to-do tourists from Russia.
Different are also the average amounts usually spent by Russian tourists using bank cards. Our compatriots are most generous in their expenses when they visit the U.A.E., Italy, Switzerland and France and they are thriftier in Spain, Finland and the U.S.A. It is worthy of note that the top ten countries in terms of payments made by the Russians with their bank cards are significantly different from the list of countries leading by the number of visits made by Russian tourists (according to the data provided by tourist agencies), where top positions are still firmly held by Turkey and Egypt.
The biggest average cheque value registered by customers visiting watch and jewelry stores is about $1,500. Second to this (around $550) is the average value of services rendered at car rentals. Over $300 lump-sum are paid by Russian fashionmongers at clothing stores abroad. An average restaurant bill weighs about $100, which is not very much compared with the Moscow level, taking into account that usually the Russians do not go to their vacations alone, but in twos.
70% of amounts paid for goods and services are spent by way of bank cards belonging to men. The sterner sex is also spending more per one purchase made, which is evidently because men happen to be the major buyers of watches and jewelry and also because they bear the brunt of payments for rented cars. Besides, it is apparent that very often bank cards possessed by men of the Russian tourist community are used to pay also for purchases made by their female fellow travelers.
It is of interest that bank card users over 35 years of age account for almost two thirds of expenses covered by bank cards abroad. Older consumers are also characterized by higher average expenses. On the other hand, young tourists (under 35 years old) are relatively more active in purchasing on credit using credit cards. Almost 90% of expenses fall within cards with a lending limit exceeding $2,500.
The survey was prepared by the analysts of the IRG agency and based on the data provided by the Kuda.ru tourist company and the data on transactions done by 10,000 owners of credit cards and by 10,000 owners of debit cards held with Citibank in Moscow, Saint Petersburg, Samara, Yekaterinburg, Nizhni Novgorod, Rostov and Volgograd. Their minimal income is 9,000 roubles a month; they are at least 22 years old; the number of surveyed men and women is equal.