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Challenges in the Croatian Tourism Sector
As we approach the peak of the summer season in 2024, Croatian tourism is facing challenges due to the mismatch between supply and demand in the accommodation sector. Zoran Pejović, Chief Executive Officer for Business Transformation at Lošinj Hotels & Villas, highlighted on LinkedIn that Croatia has the most unfavorable ratio of hotel rooms to private accommodations among Mediterranean destinations. Pejović advocates for the need for, as he writes on LinkedIn, a healthy balance between luxury hotels, mid-range hotels, and private accommodations.
Private Accommodation Options in Croatia
In Croatia, there is a wide range of private accommodation options available, from apartments to villas with private pools. Currently, there are no global luxury brands present in Croatia, which means that the luxury experience is tailored by individual property owners themselves.
Last year was a bit of a warning sign, but we managed to overcome it. This year seems to be a different story. Just today, on July 21st, I checked the availability of villas and houses with pools on Airbnb for 6 guests and more. I looked at the availability results for the week of July 27th to August 3rd, starting from Saturday.
Challenges Faced by Private Accommodation Owners in Croatia
Private accommodation owners in Croatia are facing challenges due to the large number of available properties in popular tourist destinations. In Istria alone, there are 467 houses that meet the criteria, while in Kvarner there are 387, and in Dalmatia, there are 405 houses available. Additionally, there are 1,259 houses and villas with pools, offering nearly 5,000 rooms.
If we consider that there are 25 hotels with 200 rooms each, this situation would pose a threat to one of the largest Croatian hotel companies during peak season. However, hotels have the advantage of having at least 25 sales and marketing managers with various tools and knowledge at their disposal.
On the other hand, private accommodation owners are left to compete by lowering prices on platforms like Airbnb or seeking extensions from banks to sustain their businesses. It is a challenging time for them, but with strategic planning and marketing efforts, they can still attract guests and thrive in the competitive market.
The Impact of Global Disruptions on Business
In today’s rapidly changing world, businesses are constantly facing new challenges and disruptions. These disruptions can come in many forms, from economic downturns to natural disasters, and can have a significant impact on the way companies operate.
According to experts, businesses should not rely solely on taking out loans and hoping for a new global disruption to bring business to our shores. This is not a viable strategy, as it leaves companies vulnerable to external factors beyond their control.
Instead, businesses should focus on building resilience and adaptability in order to thrive in a constantly evolving environment. By diversifying their operations, investing in new technologies, and fostering a culture of innovation, companies can position themselves to weather any storm that comes their way.
