The tourism industry is in a state of severe anxiety. Reduce prices to have at least some guests, even if they are domestic, or do not touch prices and wait for better times. But what if a competing hotel lowers its price? What if the neighbor lowers the price or the price of apartments, and has a pool? What will be the response of other destinations in the country, to open or not to open… What is Turkey doing? And Tunisia? Do they have any cases? Where will the Germans go, and the Hungarians…?
A million questions and no one in the industry has an answer to any of them. Some hotel companies have already started with price reductions, and even domestic National Parks have launched promotions, announcing that this year ticket prices would increase during the season. They were supposed to cost 300 kuna in July and August, but are now on sale for 50 kuna.
According to sources from travel agencies, prices in Croatia will inevitably fall, but the decline will not be uniform and will vary from destination to destination. They are closely monitoring what competing markets are doing, what inquiries are coming from third countries, and believe that without price reductions this year we do not have much chance.
And while apartment owners resist the policy of price reductions, some hotels have rolled up their sleeves and ventured into the unknown – adapting to domestic guests. Importanne Hotels & Resort from Dubrovnik has already partially adjusted prices.
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– We have adapted the product to the domestic market, covering the toll costs for our guests on the Zagreb-Dubrovnik route in both directions, and we also offer free transfers to and from Dubrovnik Airport. For guests from Croatia, we have also introduced the option of paying in up to 12 installments in partnership with major card issuers – they responded from that hotel company, adding that there is currently no demand regardless of what they do with the price.
And in the hotel group Jadranka Tourism they expect prices to fall, but, they emphasize, once they fall, it takes a long time to return to normal, so they will not panic and lower them, but will further enhance the offer.
– It would not be wise to assume that we can expect to achieve the same revenues as last year or maintain pre-crisis profit margins in the coming months, i.e., immediately after the easing of travel restrictions. With the reputation we have managed to establish in the market, which is providing top-notch hotel facilities and services, we will not implement short-term measures that could jeopardize the quality of our product and service, but we will explore ways to increase productivity and efficiency with qualified employees, proper maintenance programs, and better processes, all with the aim of optimizing, not reducing, our operational costs. Given that occupancy levels are expected not to reach maximum capacities this year, there are also opportunities to work with fewer seasonal workers than last summer – concluded Jadranka Tourism.
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