March the 6th, 2025 – The Croatian luxury tourism offer is improving, but there’s still a lot to be desired. With luxury hotels making up a mere 1% of the entire offer, it seems much more can be done.

As Poslovni Dnevnik/Ana Roksandic writes, the Croatian luxury tourism segment is expanding, but as touched on above, actual luxury hotels in Croatia account for less than one percent of the entire domestic hotel capacity. Despite Croatia’s truly beautiful coastline, the country is still very much lagging behind its keen Mediterranean competitors.

Valentin Röttger is the general manager of the Hyatt Regency Zadar hotel which is set to open its doors in May. He has many years of experience opening hotels in various markets under his belt. He offered his viewpoint on Croatia’s challenges in the luxury sector, as well as the demands of guests with the highest spending levels.

What do guests specifically look for in luxury hotels?

Guests in the Croatian luxury tourism segment are increasingly on the hunt for more customised experiences during their stays in hotels. They expect services that are much more closely tailored to their preferences, from a personal greeting upon arrival to carefully designed travel programmes that reflect their personal interests. This level of attention to detail enhances their stay and makes them feel valued. There’s also a growing demand for wellness and sustainability.

Guests in this particular segment of tourism are much more aware of their health and their surrounding environment. That sort of mindset leads to preferences for hotels that offer organic cuisine, spa treatments, fitness programmes, and environmentally friendly practices. Guests value hotels which actually do implement sustainable initiatives, such as reducing plastic waste, using renewable energy sources, and supporting local communities. Experiential travel is a key aspect of expectations.

It’s no longer enough to just offer luxury accommodation. Guests in the Croatian luxury tourism segment want unique and immersive experiences that connect them with the local culture. Whether that be private tours, exclusive cultural events, or adventurous activities, luxury travellers want more than just comfort. They’re looking for meaningful and unforgettable moments.

have the expectations these guests have of the croatian luxury tourism segment altered over the years?

Yes, significantly. Luxury hospitality is no longer just about material luxury. It’s increasingly focused on personalisation, sustainability, and experiential travel. Guests today are seeking a deeper connection to their destination, preferring tailored services, eco-friendly initiatives, and authentic cultural experiences over traditional extravagance. Rather than solely indulging in luxury, they tend to prioritise uniqueness, engagement, and a sense of exclusivity that goes beyond mere material wealth.

How should croatian hoteliers balance providing superior service and managing rising costs while keeping everything competitive?

Balancing superior service with rising operating costs is a challenge for all hoteliers. However, to stay competitive, they need to focus on smart strategies. They should prioritise personalisation over excessive luxury. By using technology and the guest data they have, they can offer tailored experiences, such as personalised recommendations or locally inspired welcome gifts, without having to deal with many unnecessary costs. Operational efficiency is key.

With wages being the largest expense, optimising employee scheduling is extremely important. Strategic partnerships with local suppliers help reduce costs and enhance authenticity. Locally produced food, supplies, and decor support the economy and are in line with the trend of sustainable, experiential travel. Hotels should diversify their revenue streams beyond room rates by offering premium experiences, wellness programmes, special dining packages, not to mention a few carefully curated excursions. They increase profitability while also enabling competitive pricing.

you’re opening a new hotel in may, how is the search for employees going?

The search for staff has been going very well and we’re really pleased with the interest we have received. We’re currently finalising the selection process and are happy with the quality of candidates who have applied. It is exciting to see so many talented professionals who want to become part of our team. Our goal is to bring together a group of dedicated individuals who will contribute to the highest quality hospitality and set new standards on the Zadar hotel scene.

are you having to deal with a lack of qualified labour?

While the hospitality industry often faces challenges in finding qualified staff, we’ve been very encouraged by the interest we have seen so far. We’ve already begun the recruitment process, and many candidates are in the final stages of signing their employment contracts. Our approach is to build a compact, professional team with a passion for hospitality and a willingness to make Hyatt Regency Zadar a truly extraordinary destination.

how would you compare the croatian luxury tourism offer to that of other countries? what could croatia be doing better?

Croatian luxury tourism has made significant progress in recent years as a segment. It now offers some truly spectacular coastal locations, incredible resorts and personalised experiences that can compete well with other Mediterranean destinations. Compared to Italy, France or Greece, Croatia has the advantage of very well preserved nature and a growing image of an exclusive destination. However, there are still areas that can be improved to reach the highest global standards of all.

One key area is the consistency of service. While hotels within the Croatian luxury tourism segment do offer exceptional service, the standards can vary, especially in the peak season when staff shortages affect the quality. Investing in year-round staff training and professional development programmes would help ensure a consistently high level of service. Another aspect is strengthening the overall image of the Croatian luxury tourism segment.

Countries such as France and Italy are strongly branded in the luxury sphere, supported by prestigious brands, exclusive experiences and Michelin-starred restaurants, and so on. Croatia could invest more in luxury marketing, positioning itself as a high end destination through unique, authentic experiences and great gastronomy.

Infrastructure and accessibility remain challenges. Compared to other destinations, the hotels within the Croatian luxury tourism sector could benefit greatly from improved transport links, such as direct flights from key markets and better road and nautical infrastructure for guests arriving by private yacht or plane. Finally, seasonality remains a seriously major issue.

Unlike other luxury destinations that attract guests all year round, Croatia still faces extremely high seasonal demand. Developing a real offer outside of the the main summer months, such as golf courses or wellness programmes, could help position the country as a year-round luxury destination. By focusing on this, Croatia can further enhance its luxury tourism sector and compete with the world’s most prestigious destinations.
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