What Are Customer Acquisition Costs And Why Is It Important To Calculate Them?
What Are Customer Acquisition Costs And Why Is It Important To Calculate Them? — By Meng-Mei (Maggie) Chen

EHL · 21 Jul

This article lays out why it's important to differentiate distribution costs from customer acquisition costs (CAC). Distribution costs refer to commissions paid to travel agents, OTAs, discounts to tour operators, etc. Whereas customer acquisition costs include the distribution costs, website-related costs, sales & marketing department salaries (after all, they are here to acquire customers), social media costs, advertising, loyalty and brand-related expenses, channel manager fees, etc.

Hotel Industry: A Wave Of Bankruptcies Remains Possible In Switzerland
Hotel Industry: A Wave Of Bankruptcies Remains Possible In Switzerland — By Benoît Perrier

EHL · 23 Jun

With a 40% drop in the number of overnight stays in 2020, the Swiss hotel sector is on the verge of suffocation. An exceptional season this summer, however, could limit the damage.

Macroeconomics: A Greater Focus On Past Principles (Giuliano Bianchi)
Macroeconomics: A Greater Focus On Past Principles (Giuliano Bianchi) — By Giuliano Bianchi

EHL · 17 Jun

The COVID-19 pandemic has drastically altered the world’s economic situation leading many economists to predict that it will have as great, or even greater, impact as the great depression of the 1930s. As such, many of the field’s fundamental principles must be reconsidered for the coming years, including several which received less attention in recent years as learnings from the Great Recession superseded them. In order to properly educate students and managers about the relationship between economic theories and practical implications on the hospitality industry, such shifts must be incorporated into macroeconomic courses and executive education programs as to better reflect the current economic realities facing firms and their leaders.

EHL European Hotel Transaction Price Index shows impact of the Covid-19 crisis
EHL European Hotel Transaction Price Index shows impact of the Covid-19 crisis — By René-Ojas Woltering

EHL · 8 Jun

EHL’s Institute of Real Estate, Finance & Economics is pleased to present the first update of the European Hotel Transaction Price Index that was initially launched last year. In 2020, European hotel transaction prices decreased on average by 11.1% vs. the prior year. The total transaction volume recorded by Real Capital Analytics (RCA) decreased to EUR 10.5 bn, which is 59% lower than the record transaction volume of 2019.

ESG In Hotel Real Estate: Understanding ESG & The Hotel Asset Lifecycle
ESG In Hotel Real Estate: Understanding ESG & The Hotel Asset Lifecycle — By Kimberly Yoong, Adrian Flück

EHL · 3 May

Profit, People, Planet – the triple bottom line 'Holy Grail' that many companies preach – but how many practice it?

Paradeplatz versus Brasserie de la Gare: Why are Wall Street and Main Street evolving so differently?
Paradeplatz versus Brasserie de la Gare: Why are Wall Street and Main Street evolving so differently? — By Philippe Masset, Luciano Lopez

EHL · 16 Dec

As the world marks the one year birthday of COVID-19, it is reeling from the force of the first wave, battling the second and bracing for a third. Yet, the impact of this pandemic on the real economy (goods and services) remains uncertain. The "Great Lockdown" has resulted in a severe drop in economic activity during the first quarters of the year, but the most recent figures suggest that the economy has since significantly rebounded.

Exchange Rate trends, how do they impact hotel performance?
Exchange Rate trends, how do they impact hotel performance? — By Isabella Blengini

EHL · 13 Nov

Switzerland is a very special country because, thanks to its stability, it has always been considered a safe haven where international investors put their resources when there is economic turmoil and uncertainty in the rest of the world. The combination of these two features - a high degree of openness and a currency which has a tendency to appreciate - makes Switzerland a very interesting case study. Why? Because a strong currency reduces the ability of Switzerland to trade.

The relationship between the stringency of COVID lockdown measures and GDP
The relationship between the stringency of COVID lockdown measures and GDP — By Reza Etemad-Sajadi

EHL · 9 Nov

What we have learned from the first COVID-19 wave? Insights into how different European countries reacted to the pandemic and how the diverse coping strategies affected their respective economies in the first half of this year. Interesting lessons to be learnt as we enter into a prolonged period of the pandemic.

EHL launches European Hotel Transaction Price Index
EHL launches European Hotel Transaction Price Index — By René-Ojas Woltering

EHL · 27 Oct

EHL's Real Estate, Finance & Economics Institute presents the first edition of the European Hotel Transaction Price Index. This project aims to contribute to increased transparency in the European hotel industry by publishing the index on an annual basis. This first edition of the index is based on a total of 1247 hotel transactions across Europe between 2007 and 2019. In 2019, European hotel transactions prices increased by 7.7% vs. the prior year on the back of a record transaction volume of EUR 25.6 bn. For the first time, the index clearly surpassed its previous peak from 2007.

To pay or not to pay: when dividend policy rhymes with business strategy
To pay or not to pay: when dividend policy rhymes with business strategy — By Cédric Poretti

EHL · 15 Oct

The COVID-19 crisis is putting the global economy under pressure in an unprecedented way. Companies worldwide have been forced to cut their dividend payouts. Based on the Janus Henderson Global Dividend Index (August 2020), global dividends fell by 22% to $382.2bn in the second quarter of 2020. However, significant variations appeared across regions and industries. North American dividends barely changed on a year-on-year basis, while in Europe, 54% of firms reduced their dividend payouts. In France, payouts dropped by 57%, in Spain by 70%, in Germany by 19%, while no change appeared (on a year-on-year basis) in Switzerland.

The Link Between Corporate Debt And Earnings Manipulation
The Link Between Corporate Debt And Earnings Manipulation — By Cédric Poretti

EHL · 18 Aug

Among the many COVID-19-related uncertainties, increasing corporate debt levels represent a major challenge, even though this is nothing new. Global corporate debt has been soaring since the sub-prime crisis and reached USD 72 trillion at the end of Q1 2019 (excluding financial companies) (Statista). Looking at the current crisis, things are not likely to improve any time soon. In many countries, governments are widening their support for corporate debt to help companies face the economic slowdown caused by the pandemic.

Brush Up On Finance & Wine Economics This Summer, Selected By EHL Experts
Brush Up On Finance & Wine Economics This Summer, Selected By EHL Experts — By Beatrice Venturini

EHL · 3 Aug

Dr. Philippe Masset and Dr. Jean Philippe Weisskopf are both associate professors at EHL specializing in Empirical Finance and Wine Economics. They are founding members of the Alliance for Research on Wine & Hospitality Management and have written extensively on the subject. Here they share with us some useful tips on vital pre-learning material for any potential student of economics, equity, finance and management.

How Hospitality and Retail Businesses can Survive the Coronavirus Shutdown
How Hospitality and Retail Businesses can Survive the Coronavirus Shutdown — By René-Ojas Woltering

EHL · 20 Apr

Policymakers around the world have enforced an unprecedented shutdown of public life to slow down the spread of the coronavirus. As a consequence, entire sectors of the economy have seen their revenues collapse to zero. At the time of this publication, it appears that the shutdown will be a matter of months rather than just a few weeks. Yet, to date, no coherent political-economic strategy exists on how businesses may potentially survive a prolonged period without any revenues. Many hospitality and retail businesses are about to be sacrificed in the name of public health.

Machines vs Humans: Real Estate Valuation During the Coronavirus Crisis
Machines vs Humans: Real Estate Valuation During the Coronavirus Crisis — By Dr. Prashant Das

EHL · 15 Apr

Real estate assets are traditionally valued manually, wherein computer tools are used in a supportive role. However, more sophisticated, machine learning-based valuations have gained traction in recent years. As the coronavirus crisis has posed serious challenges to the valuation community, in this article I assess the role of machines in asset valuation during such crises.

20/20 – Aiming for a Perfect Vision of the Hotel Industry
20/20 – Aiming for a Perfect Vision of the Hotel Industry — By Demian Hodari

EHL · 11 Feb

Welcome to the first in a series of panel discussions about the world of hotel real estate investment, development and management. With the help of over 20 dedicated owners/investors, asset managers, developers, general managers and consultants, we will explore a host of questions about the hotel industry in 2020.

LVMH / Tiffany - Diamonds Are Forever!
LVMH / Tiffany - Diamonds Are Forever! — By Stéphane Haddad

EHL · 3 Dec

LVMH is to acquire Tiffany & Co. for $135 per share, in a transaction which will value the entire equity at $16.2 billion. Including net financial liabilities of $0.7 billion, this leads to an implied enterprise value of $16.9 billion for Tiffany, making this the largest acquisition ever made by LVMH.