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.
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.
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the coming years, including several which received less attention in recent years as learnings from the Great Recession superseded them.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 · 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.
EHL · 3 May
Profit, People, Planet – the triple bottom line 'Holy Grail' that many companies preach – but how many practice it?
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.
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.
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 · 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.
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.
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.
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.
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.
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.
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.
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.