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Can small and family hotels outperform the total hotel industry in Croatia?

The aim of the paper is to break the illusion of small and family hotels as business which generates fast and easy profit and to demonstrate the real market situation and position of the segment. Small and family hotels have become a desirable form of accommodation. According to their high differentiation ability and flexibility, they are more able to assimilate to the constant changes in tourism demand. In recent years, Croatia has accepted international hospitality industry trend, which imply enrichment of hotel capacity leaning on small and family entrepreneurship development model. There are still limitations to the performance of small and family hotels in Croatia that need to be mentioned: e.g. adverse entrepreneurial environment and the macroeconomic climate. Despite the mentioned obstacles and the current situation in Croatia, there is a generally accepted opinion that small and family hotel businesses create a strong base for “easy life”. In this paper authors will use the results of primary research made on a sample of small and family hotels in Croatia in summer 2012. The research sample includes small and family hotels with less than 100 beds. Research method used in the paper is a highly structured questionnaire which has been sent to the owners/managers by e-mail or distributed in person. The questionnaire includes volume data and financial indicators, as well as qualitative indicators such as: quality of life, lifestyle, social status and the similar. Other than the primary research results, the authors use the following research methods and instruments: analysis of available theoretical and practical cognitions concerning research topic, analysis of relevant research results from secondary information sources (Ministry of tourism, Croatian Bureau of Statistics, Horwath consulting, Institute for tourism). According to the research findings, the authors will challenge hypothesis which states that small and family hotel businesses outperform the total hotel business in Croatia and create a strong base for “easy life” for entrepreneurs.

small and family hotels; Croatia; hospitality industry

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