Season Selection for Opening New Hotel in Northeastern and Central Europe.

Rajainder Singh
Abstract Image No. 1.0

It is very important to select the month/season for Graphs

starting new hotel business in northeastern and
central European countries. Because season
always have a big impact on hotel business and
if startup time is not calculated carefully by
company it can create big financial crises for a
new company because operation cost for hotels
vary a lot during different seasons and the graph
of tourists also goes up and down according to
seasons. In this article I am focusing on the
northeastern and central European countries like Graph Image No. 1.1
Poland, Lithuania and Latvia. During the strategic
planning for the hotel business startup company
must work with detailed study on hidden costs
associated with season/climate and company
must perform a deep market surveys during each
season before new startup.

Introduction

In Latvia, Lithuania and Poland there are four

seasons spring, summer, autumn and winter and
if we will talk about winter season it generally
starts from mid of November and goes till start of
March. During the winters temperatures can go
up to minus 30 degree sometimes. On average in
the month of January and February temperature
stay minus 5 till minus 10 with heavy snow fall and
with high speed winds also some times. From
study it’s very much clear that during these cold
winters the graph of tourists goes down rapidly. Graph Image No. 1.2
During these winters the utilities bills for hot water
and building heating goes very high. If we talk Tables
about Latvia, there is big hike in gas, electricity
and hot water prices recently in a few months.

And the second important thing is there are many

buildings with old type of heaters which cannot be
controlled by regulators. So many times there is
extra loss of heat which cost extra during bills
payments. These heaters are called latvijas
radiatora in Latvian language.
 Season Selection for Opening New Hotel in Northeastern and Central Europe.
Rajainder Singh
Table No.1.0 (AS “RĪGAS SILTUMS”)
TARIFI NO 01.07.2021 LĪDZ 31.12.2021 Vs TARIFI NO 01.01.2022.
LĪDZ 30.06.2022. IN RED COLOR
For new hotel business startup in Northeastern
and Central Europe season have huge impact on
tourism and hidden costs in the form of utilities
goes drastically high in winter season. So during
the strategic planning for hotels these both
factors must be calculated with proper manner.
Methodology

1. Interview from Locals

2635.1 - 5269.1 - 2. Interview from Hostel owner.
0 - 2635 kWh
Dabasgāzes 5269 kWh 263450 kWh 3. Data Collection from Government sites.
gada patēriņš (250.01 - 500 (500.01 - 4. Data collection from Tourism Company
(0 - 250 m³)
m³) 25000 m³)
Dabasgāzes 0.0343216 0.0343216 0.0215821
Eurostat
cena
Price of natural 0.0647755 0.0647755 0.052036
gas
Dabasgāzes 0.0343959 0.0343959 0.0216564
cena no
01.10.2021
Conclusion
Sadale - 0.0180761 0.0074416 0.0074416
mainīgā daļa
Ideal time for opening a new hotel business in
northeastern and central European countries like
Pārvade - 0.002004 0.002004 0.002004
izejas punkts Latvia, Lithuania and Poland is during the end of
winter season somewhere in mid of March so that
Pārvade - 0.0019297 0.0019297 0.0019297 utility bill should be bearable and tourists starts
izejas punkts no visiting these countries after a long break of
01.10.2021*** winter season. And if the new startup starts in
month of end of October or start of November
then these two factors will impact badly in starting
Akcīzes 0.00165 0.00165 0.00165
nodoklis*
phase.
PVN 21% 0.0117709 0.0095376 0.0068623
References
Tarifs par 1 0.0678226 0.0549548 0.03954
kWh
0.1045819 0.0917141 0.0762993 ➢ (Comerford & Callaghan, 1985),
Tarifs par 1 0.71472 0.57912 0.41668 Strategic Management, Text, Tools and
m³** Cases for Business Policy.
1.10209 0.96649 0.80405
➢ (Hunger & Wheelen, 02), Strategic

Type of public service Existing tariff EUR/MWh exluding Proposed tariff EUR/MWH Tariff increase
VAT from 1.11.2021 from 01.03.2022 (%)

Thermal energy production

49,53 52,20 5,4%

Thermal energy transmission 15,79 17,39 10,1%

& Distribution Tariff
1,31 1,34 2,2%
Trade tariff on thermal energy
Final thermal energy tariff 66,76 71,22 6,7%
Management
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 Season Selection for Opening New Hotel in Northeastern and Central Europe.
Rajainder Singh
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➢ AS “RĪGAS SILTUMS” WebPages.
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