Considering buying apartment in Dubrovnik

[zorro]

hansel said:

I am again not sure about something, when you say a management company who do you exactly think of. Can you give me an example please? Is this just for marketing?

I can't give their name as that wouldn't be right, but basically they are just a holiday company that books private accommodation in Croatia amongst other holidays. They don't manage the property, although they do carry out inspections. I am lucky enough to have people there to run the property on a day to day basis. I have received more money through them than when I marketed it myself, that is why I raised this point in the first place.

[hansel]

Thanks, no problem, I thought this was the case. This is one of the big travel agents.

[zorro]

You're very welcome

[mark2]

Hansel,

I have just looked at your website link, am I correct in assuming that the 2007 prices for one apartment which sleeps two people in a bedroom and two in the lounge is 100 Euros per night, but if you are staying only one night there is a 100% supplement i.e. 200 Euros for one night ?

[mrhappy]

Sounds expensive to me (during summer), compared to Kvarner at least.

[hansel]

Well, that's only from 29/07 to 19/08 and there has never been anybody asking for 1 night in that period. Actually if I had 20 apartments they would all be fully booked for those three weeks. I wish it was like that from April to October.

On the other hand check the hotel prices for the same period and compare even if only two people stay. I have no problem with that period at all, hence the price.

You are welcome for a night any time outside 15/06 to 15/09 and I'll wave the 100% supplement. No problem. And if you stay for at least two weeks outside those three months I'll give you 20% discount!

All depends from which angle you look at it. 25 Euro per person in an 4 star apartment of 62 sqm in August is a good deal I think. How much was for a camping site, don't remember, Mambo is an expert here.

[Carol]

I've noticed that very few hoteliers and private apartment owners discount heavily in the low season, especially for a one night stay. Does anyone know why this is? Is it the sheer hassle of cleaning the room and dealing with the customer which keeps the prices high or is there a fixed cost involved which makes discounting uneconomical for the owner?

[hansel]

What makes the difference? Lowering the price further in the low season does not guarantee considerably more bookings. Tried a few times with advertising special offers but no response to it at all. And how much do you undervalue your service when you know that what you offer is good?

The same way no one is put off by having to pay 100 Euro in August no one is attracted to 20 Euro for the same place in April. People are simply not there, it is still the sun and the sea that brings everybody here. The price is not a problem, it is promoting the low season.
If that wasn't the case Ryanair would continue flying the whole year round to Pula but they got it down to 6 months after the first year of running it. Can't see them flying 3 months only so they had to do it for 6. In addition they have Croatians visiting London as well.

In the meantime I'll enjoy wild asparagus that's just starting, long walks and bike rides by the sea in plenty of space and spring sun, my daughter's riding lessons, inland Istria little towns and their restaurants, plenty of different herbs to collect for my own tea with organic Istrian honey followed by a glass of wine from my friends wine cellar.

Still wouldn't change March in Istria for March in London, even after they introduced the new law for foreigners and cannot yet tell us what exactly we have to do.

[Carol]

Agreed that March (and April and May) in Croatia are all nicer than the same thing in London. And agreed that promoting Croatia in the shoulder season and the low season is something which needs to be done at government level (or at least apartment owners co-operative? level), not individually.
However there are some people around who would buy some nights in an apartment and i don't understand why people don't try to compete fro these buyers based on price.
Eg The Le Meridian Lav in Split isn't offering any cheap deals right now as far as i know. The price for a room tonight is more or less the same as it would be in high summer. So the place is almost empty and they'd rather keep it almost empty than offer special deals. It does not make sense to me - what happened to optimising profitability?

[darcy]

Hansel, your quality is simply superb (compared) and your price is very much OK. I charge very similar, E120 for a house (5+ beds, 2 story, garden and privacy are extra).

I tried to rent out of high season, but I had problem with demand as well. I reckon it is mostly the tourist image to blame, many services close by the mid September as well. Also, dropping the price is "a sound of weakness" in the local culture, I hope someone will agree with me.

[Carol]

I'd agree with you darcy about the sign of weakness thing. So it sort of explains why Croats don't do it, but what about the foreign owners? I'd have thought they would take the view that having a thriving business was a sign of strength?

[steveb]

We have a small house which we let out. Last season we let some of May, some of June, all of July, August and September, and a week into October. We reduce rates outside of mid july through mid September.

[mambo]

Hansel,

Prices on certain campgrounds are indeed insane and the result is that bookings are dropping like a rock. Last year Lanterna was already charging 85 euro for a family of 5, with caravan, extra tent. And for this 85 euro you get a piece of grass !

The one thing that nobody has ever been able to explain me is WHY we have rip off prices in August and lower prices in June and July ?
It does not make any sense to me whatsoever.
In the Caribbean, where I have lived for 17 years we simply work with seasons of 3 months and the prices are identical during those three months. The same could be done here without a problem.
The Italians may have their holidays in August, but the Dutch and the Germans have their holidays in June and July, so for them June and July are the high season, they are not coming back in August for a second holiday.
Instead of asking 55 euro in June and 100 in August I think I would opt for 1 price from June til August of 75 euro/night. It works in the Caribbean, so why wouldn't it work here ?

[darcy]

I do not about the others, but I (as a foreign owner) can't drive the price. The price is driven by locals and if I do against them I know I will be in a trouble. Eg. my price per bad is the same as the big house across the street where they do not have separate toilets etc. and pack 5 families at the same time.

As my property is in a small fishermen village, if I drop the price, I will be in trouble, that is my experience. I also can't raise the price. It is not free economy at all.

[zorro]

::)d**n locals.