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The largest Swiss travel provider is for sale. It seems completely unclear where the Migros subsidiary’s journey could go.
The Hotelplan Group includes five different brands and areas – for example business travel providers or Interhome, the holiday apartment rental company. It is therefore quite possible that this construct will now be broken down into individual parts, says tourism expert Monika Bandi from the University of Bern.
According to their assessment, the Hotelplan fillets could be sold individually. This could work for companies that want to grow specifically, be it in vacation rentals or business travel.
Only a big player can take over Hotelplan as a whole
Hotelplan as a whole, with its 1.7 billion francs in sales, can only be afforded by those who have enough money. “As a complete package, Hotelplan can almost only be taken over by another even larger company,” says Bandi.
This is also why it is possible that the individual parts of Hotelplan could go to various other companies.
Other well-known travel companies such as Kuoni are no longer independent. Kuoni still exists as a brand as a label, so to speak. The company was sold to the travel division of the German retail group Rewe almost ten years ago. This is called DER Tourism.
A family business that has a heart for Hotelplan is also conceivable as a buyer.
However, it is now questionable whether Rewe wants to become even bigger in Switzerland. The same applies to TUI. Competition law questions could also arise for both companies: like Hotelplan, they are already one of the largest travel providers in Switzerland.
Buyer from outside the industry possible
Buying Hotelplan in one go could therefore be easier and more sensible for a group from outside the industry that wants to enter the travel business – for example for an airline or a trading group that is familiar with exports. Instead of selling goods, he would sell holidays abroad – why not?
Legend: Hotelplan generates around 1.7 billion francs in sales per year with its five areas. Migros wants to sell the travel subsidiary because it no longer fits into the portfolio – not because it is not profitable, according to Migros. Around 2,500 people work at Hotelplan in 20 countries. Keystone/Michael Buholzer
“It is also conceivable that a family business has a heart for Hotelplan,” says tourism expert Bandi. After the sale announcement by Migros, a certain shock was noticeable in the reactions – especially among those who know the roots of Hotelplan and see the company as part of Swiss tourism history.
As a reminder: Migros founder Gottlieb Duttweiler founded Hotelplan in 1935 – with the idea of making it possible for families with low incomes to take vacations, to Ticino, for example.
Changing travel market
Today, however, tourism is a highly competitive market. And the question arises as to whether travel agencies are still profitable in the age of the Internet and travel apps. They would very well do that, says travel expert Bandi.
Part of the business is the daydreaming in the travel agency – and the anticipation of a trip.
The market has changed: today there are far fewer travel agencies than there used to be. But the remaining providers have specialized. Up to 30 percent of all trips are still booked through travel agencies. “Part of the business is the daydreaming in the travel agency – and the anticipation of a trip,” emphasizes Bandi.
Traveling is a very emotional thing. Whether feelings will also play a role for the buyer of Hotelplan or just sober reason – that is still up in the air.