Will Croatian Restaurants Raise Prices Amid Rising Energy Costs?

Lauren Simmonds

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As Poslovni Dnevnik writes, just about everything is becoming more and more expensive, and we’ll all likely be paying more for holidays this year as well. The Family Accommodation Community, which brings together the owners of the popular ”zimmer frei” brigade, estimates that prices will rise by an average of 10-20 percent. The head of that association, Marina Nimac Kalcina, is aware of how unpopular such announcements are, but, she says, that’s the reality.

”Unfortunately, our economic situation is such that it will be a problem for some Croatian guests, but the season lasts only a few months, the costs are rising, and the hosts have to make a living from something,” said Nimac Kalcina, revealing that the reservations being made by foreign visitors in January was almost like it was back in pre-pandemic 2019.

”If the coronavirus pandemic doesn’t additionally complicate the situation, there are great chances for a good summer tourist season. With almost no interest in the pre-season, most reservations are for the summer months and there are also already some for the post-season. Money isn’t as much of a problem for foreign guests, and according to some research, they’re ready to spend more on holiday than they did last year. For Croatian guests, it’s fortunate that there is a wide range of prices in the family accommodation segment.

Last year, for example, a family of four in Dalmatia could choose an apartment for an average of 70 to 250 euros per day. This summer could be different, but in any case, guests will need from a few euros per day to a few tens of euros more than they did last year. As a rule, hotels are a more expensive option, but they contracted with partners last year on prices for 2022, which are higher by the amount of inflation expected at the time of two to three percent.

Some capacities have already been sold off at their previously published prices. As for the “unsold” beds, all large hotel companies are using so-called revenue management software that changes prices on a daily basis depending on supply and demand, ie the availability of capacity in its own sales,” explained the director of the Croatian Tourism Association, Veljko Ostojic.

”When it comes to the price of food and beverages in Croatian restaurants and facilities that provide à la carte services, there will definitely be an increase depending on the movement of prices of input materials; groceries, drinks, energy etc. At this moment in time, it’s too early to say how much those increases will be, more will be known in the second half of March,” added Ostojic.

In the hospitality industry, everything is more or less clear. We will pay more for coffee, juices, beer in cafes, and of course, most Croatian restaurants will get new price lists, writes Vecernji list.

According to Nikola Eterovic, president of the National Association of Caterers, each restaurant has its own specific situation, but he also believes that, for example, the coffee we now pay ten kuna for will increase ten to 30 percent, so by one to three kuna, and there is a simple explanation for the fact that some Croatian restaurants are announcing that they will not raise their prices.

”Either they’ve already done so in the past few months, so now it is a marketing ploy with them saying they aren’t going to do it, or they’re working against the tide of the economy at the moment. There is no third option there,” said Eterovic, adding that lower VAT, which is a now very old request of Croatian restaurants and other hospitality and catering facilities, would be of great help to the industry.

For more, check out our business section.


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