engleski

Financial risk management practice among hotels in Croatia

Internal – and, especially external - forces have significant influence on the hotel industry resulting with very fast changes under the high pressure of maintaining profit margins. In general, the hotel industry is highly capital- intensive, which correlates with long-term investments in material assets and high rates of fixed costs. Due to all of the above, without proper financial risk management hotels may quickly experience negative financial results. This study aims to investigate the existent practices of financial risk methods and techniques for risk analysis and measurement among four- and five-star hotels in Croatia. For the purpose of this research a survey was distributed among hotel managers (hotel directors/divisions and departments managers). Findings imply that financial risk are not adequately managed among four- and five-star hotels in Croatia. Furthermore, advanced methods for financial risk management as well as sophisticated methods and techniques for risk analysis are not sufficiently used. Results indicate a worrying low level of practice of complex methods for risk management among hotel managers. Additionally, findings raise questions regarding risk management of basic financial risks such as interest rate risk, foreign currency exchange rate risk, etc. The main research limitation is the relatively small sample of respondents.

Risk Management ; Financial Risks ; Croatian Hotel Industry

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