New Deal Europe Weekly Update on Tourism to the Balkan Region, Week 31
News from the destinations: Ferry operations in Croatia
This week we focus on the all important ferry routes connecting the Croatian islands with the mainland, in our interview with Zvonimir Matić, Commercial Operations Manager of Jadrolinija. We discuss how they have adapted to the pandemic and learn their plans for the restart of global tourism. We examine how ferry companies can be green and sustainable, and also get his insider tips on the ‘off the beaten track’ Croatian islands waiting to be discovered by International tourists.
NDE: Thank you for being our guest today Zvonimir. To start, can you give our readers an overview of Jadrolinija and its place in the tourism infrastructure of Croatia.
ZM: Jadrolinija is a national liner company boasting a 74-year long tradition. It was founded in Rijeka in 1947, as a successor of various small coastal shipping companies operating since 1872. More importantly though, Jadrolinija is the lifeblood of the Croatian Adriatic Coast. It plays an indispensable role in the lives of islanders and coast dwellers as their connection with the mainland, as well as in the development of the economy and tourism. In addition to this important position in the lives of the local population, Jadrolinija has opened the door to the beauties of the Adriatic Coast for visitors from all over the globe and so has taken an active role in shaping the Croatian tourist offer.
The importance of Jadrolinija and its standing in the tourism infrastructure of Croatia is best reflected in the fact that Jadrolinija annually transports over 12.5 million passengers and 3.5 million vehicles onboard its various routes. Our white fleet features 54 ships made up of 10 catamaran ferries, 37 ferries on local lines, 3 ferries on international lines and 4 classic ships giving us a total carrying capacity of 4,000 vehicles and 30,000 passengers. With this fleet, Jadrolinija operates 34 local lines in Croatia and 3 international lines between Croatia and Italy. In the summer, the vessels see over 600 daily departures, and the busiest lines are operated almost around the clock.
NDE: That’s quite an operation. How has the pandemic situation in Croatia affected this operation?
ZM: The current priority in Croatia, as well as worldwide, is the health of the citizens and management of the coronavirus epidemic. We had our first lockdown in the spring of 2020. Croatia stepped up its epidemiological measures for the second time in November in order to combat the coronavirus pandemic and keep the high daily number of new infections at bay. These restrictions have affected the tourism and travel sectors at the national and global level, and Jadrolinija’s operations cover both of these branches. The unforeseen situation called for quick reaction, with research and adaptation to the new circumstances. In March, at the outbreak of the epidemic, our ferry services were reduced, and international lines between Croatia and Italy were suspended, as Italy was particularly affected by the epidemic at the time. Our priority was to maintain the connection between the Croatian islands and the mainland. In June, July and part of August 2020, the coronavirus outbreak temporarily subsided, and the summer season thankfully surpassed our expectations.
Our priority during every trip is the health of our passengers, crew and other employees.
NDE: And how is it affecting you currently?
ZM: Our ships are currently operating on the off-season schedule, and we are hoping that in the summer of 2021 the pandemic will be under control, and that we will resume our full active role in shaping the tourist offer in Croatia.
NDE: Safety is at the top of everyone’s agenda right now and travellers are seeking reassurance on this before making decisions. What measures are you putting in place to guarantee people’s safety on board your vessels?
ZM: In order to upkeep our routes, Jadrolinija had to adjust to the “new normal” by adhering to the measures prescribed by the National Civil Protection Directorate of the Republic of Croatia. Our priority during every trip is the health of our passengers, crew and other employees. To this end, we have put in place all necessary protection measures on board our ships and in our branch offices. Our crew and other staff take painstaking care to regularly disinfect the passenger areas, air out all closed spaces, supply ships with required protective equipment and we keep them informed on the measures needed to combat the spread of the coronavirus on a daily basis. In order to further increase travel security, passengers are advised to stay in their vehicles while onboard, book online and use contactless payment methods at points of sale. In addition, wearing masks is mandatory onboard all Jadrolinija ships. Informing our passengers of all effective measures accurately and on time is very important to us.
NDE: How do you think the government is managing the epidemic, and have they been doing anything to support you and the tourism industry generally?
ZM: Since the outbreak of the coronavirus epidemic, Croatian authorities have been reacting promptly and in the best interest of the citizens in order to combat the spread of the infection and return to our familiar way of life as quickly as possible. Since tourism is a significant economic sector in Croatia, measures have been taken to ensure a continuous operation and a successful return, once we have beaten the epidemic, to the high-quality offer that makes Croatia recognisable. Croatia has also been successfully cooperating with the European Union, and we expect the revitalization of this vital tourism sector with the help of economic recovery funds.
NDE: We heard from other tourism providers in the Balkans that their main business in 2020 came from markets that were easily reachable by car, since there was a lack of international flights. Was this your experience and if so did this benefit Jadrolinija in any way?
ZM: In 2020, we experienced a decline in traffic, as did most companies focusing on travel. However, the summer of 2020 brought a temporary respite and an increase in travel under these ‘new normal’ conditions. During this period, we saw an increase in passenger arrivals from neighbouring countries, such as Italy and Slovenia. However, we mostly relied on domestic travel and the rise in the movement of domestic tourists. In the absence of international flights and due to various limitations on the global level, many Croats turned to discovering the beauties of their homeland, and especially the natural beauties of Croatia’s indented coastline.
NDE: How is the business forecast for 2021 and what marketing channels do you think will drive that business?
ZM: If the unpredictable last year has taught us anything, it’s certainly that even the most painstaking plans can fail overnight. That is why we want to gain from the experience and be ready for new challenges in 2021. In 2020, we started working on refining our online sales channels as well as in-house digitalisation in order to increase business efficiency and enable a smooth transition to remote work. In 2021, we are looking to continue developing these processes, starting with the launch of a new website. These business adjustments and the monitoring of the needs that arise during the crisis caused by the epidemic will be the key to further development in 2021. We believe that we are facing a transitional year and we will have to apply the learned mechanisms of coexistence with the virus, but still hope to move a step closer to the normalisation of the market and a gradual return to travel without restrictions.
NDE: You said earlier that you had to adapt to these challenging times we are facing, and you’ve just mentioned some ways in which you have achieved that. Are there any other things you are doing differently in 2021 in order to attract business?
ZM: We are currently intensively designing and preparing campaigns for the upcoming season. Our goal is to communicate to our passengers that Jadrolinija is a reliable lifeline, regardless of our current circumstances. We are also paying great attention to the adaptation of travel to the epidemic, and we are stressing the importance of safe travel and compliance with the effective protective measures onboard our ships. Adapting to the ‘new normal’ entails more flexible booking conditions, particularly regarding cancellations, and especially on our international lines: Split to Ancona, Zadar to Ancona and Dubrovnik to Bari. We have, therefore, adopted new, more flexible cancellation terms and conditions that allow our passengers to change the date of their travel up to a day before departure and use vouchers for international routes within 12 months.
We hope to see the first results of the measures that are currently in effect by the beginning of the summer 2021…current trends indicate that there is room for optimism.
NDE: When do you think business will get back to normal, and what makes you think that?
ZM: We hope to see the first results of the measures that are currently in effect by the beginning of the summer 2021. We say this because we hope that the vaccination will proceed according to plan, regardless of the current small delays. We believe that with current trends of declining numbers of newly infected patients, we could see a return to global travel in some capacity by then. It will be some time before we return to the normal we once knew, but current trends indicate that there is room for optimism.
NDE: What do you think will be different about travel and the various segments you target in the future and how will that impact you?
ZM: We expect to be operating under special conditions and exercising a great level of caution for a while. We believe that our company, our employees and indeed our passengers are already accustomed to the measures necessary for safe travel. Additionally, we are likely to keep focusing on our domestic travellers for the foreseeable future, but we believe that the world will gradually shift back to worldwide travel.
The sea is the root of our business and we have a great responsibility for its protection.
NDE: Many of the companies we have interviewed have said that sustainable tourism products will be key to delivering a pathway to recovery. However, transport providers seem to struggle with this more than other elements of the tourism package. Is there a role for sustainability within the ferry industry and what form will that take?
ZM: The sea is the root of our business and we have a great responsibility for its protection. We acknowledge that strategic investments in new, modern ships fuelled by renewable energy sources are an important direction of development, and the basis of future maritime transport, and transport in general. In addition to new ships that use renewable energy sources, technological development also allows us to improve our existing fleet and increase the share of green technologies in our business. I can say that our motto, ‘Jadrolinija thinks green’, has been implemented in almost every segment of our operations.
NDE: How important is the leisure market to your business and what are your plans for it?
ZM: Trips organised by travel agencies are an important crutch for travellers in times of pandemic, and we will continue to systematically nurture our partnerships with agents. Travellers can rely on organised travel, and they can get information on the measures and terms of entry into a country from their agency.
NDE: How do you think you will work with tour operators and travel agents, moving forward?
ZM: We will still take part in international tourism fairs. We are indeed very thankful for the opportunity to maintain this tradition even under these new conditions, through online events.
NDE: Looking in detail at leisure trips, if someone has never been to Croatia, and they are thinking of travelling with you, what are the must-see places and must do things which should be on their list?
ZM: Croatia is a country rich in natural beauty, culture and hospitable people. No matter the region you choose to travel, you will not regret visiting Croatia. Since Jadrolinija connects Croatian islands with the mainland, we definitely recommend visiting one of our many islands and experiencing the unique opportunity of sailing the crystal-clear Adriatic Sea aboard one of our white ships — this is where the holiday really starts for many of our visitors.
I can say that our motto, “Jadrolinija thinks green”, has been implemented in almost every segment of our operations.
NDE: And if someone has been to Croatia before, what are the more unusual places you go to which would give them a different experience from last time?
ZM: No matter which of the 42 islands that are connected to the mainland by Jadrolinija’s ships you choose, you will discover unexplored beauty, peace and unspoilt nature. For example, you will no doubt be captivated by the northernly island of Cres and its excellent cuisine, which will come as a reward after exploring its many hidden beaches. From Zadar, you can take one of our ferries to Dugi Otok and explore the cliffs of the Telašćica Nature Park or the near-exotic beaches by the turquoise sea. If you are travelling south, you can’t go wrong stopping by Vis, with its countless cliffs, hidden coves, sandy beaches and sea caves.
NDE: I hope I can take up some of your suggestions soon. You mentioned that you are taking part in on line fairs, and Jadrolinija will be at New Deal Europe in April. What are your goals for the event and what message do you have for the companies who would like to meet with you?
ZM: Participation in this event will open doors to forming new partnerships and provide business opportunities, as well as an opportunity to showcase our services. It’s also a chance to learn from other professionals in the industry.
Jadrolinija’s presentation on the international market is important not only for the company’s business strategy, but also because Jadrolinija is inseparable from Croatian tourism in general. Participation in this kind of event helps pave the way to devising a strategy for the recovery from the crisis caused by the coronavirus epidemic. Such a strategy is best created through cooperation and exchange of experiences.
Questions by Tine Murn and Robert Dee, founders of New Deal Europe, the only travel market platform dedicated to generating business to the Greater Balkan region of Europe. Apply to New Deal Europe Marketplace and Forum 2021 at www.newdealeurope.com.
