While some private renters in Dubrovnik are satisfied and report that their accommodations are filling up better than last year and at higher prices, others say things are not going as well and that it is worse than in 2024. We wanted to hear from those who work professionally in tourist rentals about what the real situation on the market is, and how much the fact that Easter falls quite late has affected the start of the season. We also looked into the situation with the workforce, changes in tourism trends, and general expectations for the 2025 season. From several Dubrovnik tourist agencies, we learn that they do not have problems with filling their accommodations.
Too much competition and price increases
– As for our market, we first need to take into account the huge number of accommodation units, which continues to grow every year, and it is unrealistic to expect at this point that everyone is “doing great”, because in the last few years, if you are not competitive, you also face challenges in selling last-minute bookings in the heart of the season. We do not have the kind of demand where there is a shortage of beds in peak season and everything gets booked easily. However, based on the information I receive daily and what I have insight into, occupancy is going quite well, and our agency also belongs to that group with the properties we manage. For a smaller part of renters who are not satisfied, there can be several reasons — from excessive price increases, huge competition, to changes in booking trends for certain types of accommodation, which are being booked later and later – said Stjepan Burum, owner of the DuBooker agency, who has been in this industry for a decade.
Less and less last minute bookings!
– I have a newly equipped apartment in a good location and this is my third year in rental business, so I am still adapting. I was surprised that this year, despite excellent ratings and reviews, I cannot achieve the same prices as last year, so I am in doubt about how long to wait before lowering prices in May, because these ones are not booking for now – a private renter complained to us, and for advice we asked Burum, who learned the trade while working at one of the world’s largest platforms, Booking.com.
It all depends, Burum explains, on the location and type of accommodation, but in general he does not recommend waiting for last minute bookings because it involves taking a risk.
– We have not had demand for last-minute accommodation like in, for example, 2017 or 2018, when literally everything could be sold at almost any price for years now. Precisely because of that pricing approach, waiting, and other factors, my recommendation is always to leave property management to professionals. Specifically when it comes to sales, people who work in rentals as a profession have access to a larger database and therefore have clear indicators of what is being sold and at what price, while owners, when researching the market, only see how much a competitor is asking for their accommodation, which often leads them in the wrong direction when setting their own price, because one thing is what someone is asking, and another is the actual selling price. A good number of renters at the end of the season raise prices without any analysis, guided by the “we’ll lower it if it doesn’t go” approach, which leads to pricing “chaos”, so you can easily find properties of the same or similar quality in the same location with large price differences – Burum told us, noting that professionals approach situations and problems differently.
– What happens to some renters once a year or once in a lifetime is an everyday occurrence for professionals, so they know how to handle all situations and renters then have strong support because they know that every problem will be solved – Burum told us, whom we also asked how much the late Easter affected the start of the season.
– With the introduction of an increasing number of flights during this period, we have reduced the impact of Easter on the success of the pre-season, so in my opinion it has no effect. I would also point out that March was successful – we learned from Burum, and received confirmation from two more tourist agencies.
Hour of cleaning is even 25 EUR
It is generally known that year after year it is becoming increasingly difficult to find cleaners for apartments. The new law has also tightened the conditions for accommodation and other regulations, with the aim of protecting foreign workers. Hotel companies told us that for these reasons they started preparing for the season while the previous one had not even ended. However, despite having secured a sufficient number of workers, the question remains about the quality of service these employees will be able to provide to guests. In the private accommodation sector, this problem is not being hidden. It is also linked to rising costs. Namely, cleaning rates have increased, with workers charging up to 25 EUR per hour, although the average is 20 EUR. But, logically, demand dictates prices.
– Unfortunately, the problem of labour force is growing every year. Just like for everyone else, it is also the case for our clients who are not able to maintain their accommodation capacities themselves. Cleaning prices are increasing every year, but that is the situation on the market and we have to accept it and adapt as much as we can. Of course, this has a negative impact in the sense that certain clients are not competitive either in price or in minimum stay requirements because they have to include all their costs – Burum explained to us.
Key box replaced the welcome
A lot has clearly changed in our tourism over the years. The old system of a proper guest welcome, hospitality, conversations… has been replaced by a key box. And this is a global trend that we have also adopted. It suits younger people. They are comfortable, they do not have to specify when they will arrive, and they value their privacy, so they are not keen on talking to hosts. They often state in surveys that everything they are interested in can be found online anyway. Older generations of guests, on the other hand, appreciate a warm welcome, although in general terms, and there are always exceptions. Overall, self check-in has become almost a rule. Most agencies operate on this principle, which significantly makes their work easier and, of course, reduces costs.
– For years now, this has been a normal thing in large cities around the world, which is understandable because organizing guest arrivals is operationally much more demanding compared to smaller places. It started in our country in larger cities as well, but every year it is becoming more widespread here too. The biggest “drivers” of this trend in our country are Covid, the mentioned lack of labour force, and since last year, delayed flights. Croatian accommodation capacities are among the very top in the world in terms of guest ratings, and the host approach has greatly contributed to that, so whoever can should continue with it, because I believe guests will not receive such treatment anywhere else in the world. As you yourself mentioned, a good part of guests wants that freedom and lack of pressure on the day of arrival, so with clear and good instructions and a clean accommodation unit, the rating should not be worse – Burum confirmed to us.
Just let there be peace…
The question above all questions every year, not only for agency owners, private renters and hospitality workers, but for all of us, because directly or indirectly we all live from tourism, is — what is the expected 2025 season like?!
– The season will be successful, and as long as global and regional events do not affect peace in this area, there is no need to worry. Dubrovnik is a global brand and, with so many past visits, it continues to impress tourists every day. We just need to keep working on the offer and quality as much as possible, despite all today’s challenges – Burum’s forecast is optimistic, and we of course do not doubt its basis. So we have reasons to be happy!
