Hotel in 13 stories: Destination - the key to success

If we exclude a very small number of hotels that can operate successfully regardless of their destination, then we can safely say that a quality destination is the key to a hotel's success.

Whether the destination is managed, how it is managed and in what way the destination is promoted are the fundamental questions that quickly lead to the answer of how the destination affects the hotel business.

Non-management, or so-called random destination management, is very “popular” and common in our region, and the result is almost always a pale, unrecognizable and exceptional seasonal destination, which consequently leads to disastrous financial results. There are cases when tourism in a certain destination simply “happens”, but these are extremely rare and unpredictable cases, and the causes are war or pandemic events in competitive markets or private initiatives in the destination, such as large financial investments (hotels, resorts, marinas) and the organization of various manifestations (festivals, sporting events).

A tourism "event" can easily be a double-edged sword because unprepared stakeholders within a particular destination are unable to deliver quality service, leading to only short-term tourism growth and a very large subsequent decline.

Very specifically, in a "random" destination hotel it is almost impossible to find quality labor, the extra-curricular offer is insufficient to keep hotel guests satisfied, and the limited basic prerequisites for the functioning of the hotel such as electricity, water and a passable sewage network make the hotel's operational work difficult. Road congestion and insufficient parking space also do not keep up with the needs of the multiple increase in people staying in the destination.

The aforementioned problems make the life of the local population unsustainable, and the gap that is created between the irritated local population and all stakeholders of tourist activity in the area is a clear negative sign and the cause of endless problems.

In this case, it is evident that the growth of tourist activities has overtaken the development of the destination, and we can safely say that the destination has a negative impact on hotel business.

Destination management must be a highly strategically thought-out activity that will persistently and sustainably develop its qualities with a precisely defined time and financial dynamics. Focus on natural beauty, historical sites, revival of legends, rich gastronomic and eno offerings and organization of various events necessarily lead to a significant increase in all indicators of the success of the current season, but also to its extension, which is a clear goal. It is also very important to cite an example of destinations that have co-financed the arrival of low budget airlines, which has made the destination cheap and easily accessible. Far-flung destinations have thus become weekend destinations. In this case, we can certainly say that the destination has a positive impact on hotel business.

Tourist councils and communities should be the places where the aforementioned optimal solutions are found, and as key tourism "multipliers" I would mention hotels that generate the most jobs within the destination, promote it, include local suppliers in the supply chain, and by paying various taxes and fees, enable the financing of tourist boards and local governments.

The ecological sustainability of a destination is a topic that is increasingly being discussed and is very important in the long term. Namely, the pollution generated by the tourism industry is certainly not negligible, and the most notable ones are the increase in road traffic activity leading to an increase in exhaust gases, the increase in the number of vessels discharging their wastewater into the sea, and the increase in the amount of garbage that guests create while on vacation.

Optimal promotion highlights the best of a destination and attracts a specific segment of potential guests who perfectly match the character of the destination and accommodation. In this case, we are also talking about the extremely positive impact of the destination, which creates the prerequisites for the development of hotel and private accommodation.

Which emission market to choose, which market segment to address, which promotional channels to use, how to shape the promotional message and what exactly to promote, are fundamental questions that must be asked before determining the strategy of promotional activities.

Accordingly, only when all stakeholders within a tourist destination come together and create a synergistic effect through their joint actions can we speak of a successful tourist product that is competitive on both the domestic and foreign markets.

Translated into practice, when a guest wants fun, they book a hotel on Zrće, when they want a vacation on a fashionable island destination, they book a hotel on Hvar, and when they want to experience gastronomic and oenological beauty, they book a hotel in Istria. Sapienti sat.

Author Domagoj Grgic

Photos: Albert Vincent Wu / Illustration: HrTurizam