Dire Projection - A Third (some 1,000) of Swiss Hotels Will Close in the Next Ten Years – by John Hendrie

Swiss Hotel Association President, Guglielmo Brentel, recently provided some fascinating statistics, which were also quite telling. Out of Switzerland’s 5,500 hotels, 40 per cent account for 80 per cent of overnights. Sixty per cent share the remaining fifth. He noted that the “market” will drive the demise, but most of the operations, smaller and family-run, have simply not kept up with the times.  They will disappear.

Ah, that “Market” – no respect for tradition, for history or effort.  As Brentel summarized, “There are other reasons why people travel and you have to know what they are and offer the services they expect. The problem lies in structural deficits, lacking position, weak marketing power and lower costs. There’s always someone cheaper than Switzerland.”

There are pockets around the world with similar situations for the smaller lodging establishments, but much of the problem does reside with the operator, who tends to believe “they will come, because they always have, generation after generation.  Why should I change”. This attitude is incredibly frustrating to those of us who travel and provide counsel for a living.  And, we all have seen this arrogance, buttoned up in a dream state. 

I attended a Small Lodging conference in Florida in 2004 where a number of members still did not have a web site.  In 2006 I was speaking about Quality Assurance to the Lodging sector of the Chamber of Commerce in a major ski area in Vermont.  The meeting almost broke out into fisticuffs (Big vs. Little operators) over whether they should focus on being a four season Destination or not.  Although they catered to the Boston and New York area, some did not believe that locks on Guest Room doors were appropriate.  It was not the proper “feel” for their property.  Invasion of privacy, security breaches and crime simply do not occur in Vermont.  I was stunned.

Switzerland, most other European countries and several around the world also have very extensive rating categories, defining descriptively and qualitatively what different types of lodgings are and should present to the Guest - the “slice and dice” approach to Hospitality with perhaps a stigma at the low end, the two star.  The US is all over the board – caveat emptor.  In Switzerland you are exposed; in the US we have cover.

“Building a hotel where people can sleep, eat and drink is not good enough anymore,” reminisced Brentel.  “The point is to offer not only accommodation but an experience.”

What do the tea leaves spell for the smaller lodging establishment?  First, get out of the fog and get real.  There are some wonderful small lodgings – B&B’s, Inns and retreats.  But, Guests will not just come, as they always have.  It is about the Experience!

 


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