Željko Stašević, Kempinski Palace Portorož, at the “Summer 2023” conference panel, said, looking back on current inflation, that there is a difference between five-star hotels and others, and that one of them is the impact of that crisis and inflation on business.
“When you work in high five stars, then of course you are much more resistant to raising prices, to inflation, to things like that which, unfortunately, are much more influential on hotels and businesses that attract the middle or lower class. Also, when you are part of a brand which has already been built, we celebrated 125 years last year, then the position is better and easier,” he said.
However, as he says, this is not a sign to relax because this is an industry that requires focus. “Of course, that must not make you uninterested, you have to be focused. Because if you are uninterested and believe in yourself too much, then mistakes can happen,” he added. For this type of business, whether the markets are open or closed is a bigger problem than inflation. “Our business is much more affected by whether the markets open or close. For example, last year and the year before last, America did not travel and it was felt. And for example, last year Russia stopped traveling to these parts, and it stopped traveling and Ukraine in the vast majority and this is, of course, felt. These are powerful markets with a huge number of clients who like to stay in the most luxurious places in Europe and the world,” says Stašević. Inflation did not affect the volume of work, which was on the rise, but therefore felt in the case of profit. “We increased the volume, we increased the turnover, but we failed to adequately, in relation to the turnover, to increase the profits to that extent”, he pointed out.
The entire conference can be viewed HERE.