CHALLENGES OF IMPROVING PRIVATE ACCOMMODATION BUSINESS IN THE REPUBLIC OF CROATIA

Accommodation capacities in the so-called ‘private accommodation’ facilities play an important role in the Republic of Croatia as in no other tourism system worldwide. Over 60% of total accommodation supply accounts for apartments, rooms and houses for rent which are managed by about 70,000 citizens and micro business entities. Continuous and very intensive increase in the capacities within this accommodation segment induces a growing number of challenges in terms of their organisation and business activity. Therefore, this paper is focused on the analysis of general framework and context within which their intensive growth is taking place. The purpose and objective of the paper is to analyse the differences within a large group of private accommodation suppliers, their business challenges, as well as their motives for engaging in this business. With the aim to define the key differential groups of accommodation suppliers, explorative research was conducted through in-depth interviews with chosen experts from business practice. The second part of the paper is focused on examining the importance of the particular motives for engaging in this business, namely, offering private accommodation. Research results and former knowledge lead to clear conclusions based on which it is possible to suggest the guidelines for future operative plans for private accommodation development strategies in Croatia as well as further guidelines for future scientific research within this field.