The largest OTA for the Russian market

Founded in 2010, the Moscow-based startup Ostrovok.ru has raised over $50 million in investment, built an inventory of 1 million+ accommodation options worldwide, and attracted millions of Russian-speaking travelers.

Launching With International Backing

Serge Faguet and Kirill Makharinsky founded the company in 2010. The founders raised an impressive $13.6 million from an array of international investors, which demonstrated investors’ confidence in the founding team and the market opportunity for online travel in Russia.

Building Partnerships and Products

In the company’s first year, Ostrovok was named one of the best startups by Forbes. By 2012, Ostrovok became a resident of the Skolkovo Innovation Center and inked partnership deals with prominent travel brands.  Ostrovok was an early mover in mobile, launching iOS and Android apps in 2012. Then, the platform bolstered the payment options with cash-based methods to serve customers without credit cards.

Growing the Hotel Supply

Ostrovok’s business model is forming direct relationships with hotels and accommodation providers incliuding vacation rentals.

Ostrovok had ambitions beyond Russia, aiming to add direct connections with hotels in Europe, Asia, and the U.S. Ostrovok’s efforts paid off in 2018 as the site touted over 1 million accommodations options worldwide.

Entering the B2B Market

Another major development in 2014 was the launch of Ostrovok’s B2B portal at B2B.ostrovok.ru. The service caters to corporate clients and travel agencies looking to book accommodations.

The B2B arm has opened up a new revenue stream and customer base for Ostrovok, leveraged the company’s core booking platform and hotel partnerships, and adapted to the needs of business clients.

Competing as a Local Leader

As a domestically-focused online travel agency, Ostrovok faces competition but succeeds by:

• Catering to the preferences of Russian travelers
• Localizing content and customer support
• Building strategic partnerships with other major Russian companies
• Innovating products with features like alternative payment methods

Future Outlook

Ostrovok’s potential priorities include:

• An expanding accommodation supply in destinations popular with Russian travelers
• Improving personalization and recommendation features using customer data
• Exploring new customer segments such as “bleisure” (combined business-leisure) and alternative accommodations
• Pursuing M&A opportunities to gain footholds in adjacent markets or product categories
• Investing in brand marketing to build awareness and affinity with the next generation of travelers