Three major Swiss travel agencies, Imholz, Kuoni, and Hotelplan, once dominated the market but succumbed to competition from larger German firms, particularly Tui and Dertour. The recent sale of Hotelplan by Migros marks the end of independent Swiss travel agencies. Tui maintains a strong brand presence, while Dertour operates under Swiss names. The shift reflects changing consumer preferences and the challenging economics of the travel industry, resulting in a landscape now largely controlled by foreign operators.
The Rise and Fall of Swiss Travel Agencies
Once upon a time, three prominent travel companies in Switzerland, Imholz, Kuoni, and Hotelplan, charmed the hearts of many locals by whisking them away to sunny beaches year after year. However, a new force emerged from the north, bringing with it a significant advantage: the ability to leverage larger economies of scale.
One by one, these independent operators succumbed to the competitive pressures until none remained. Today, Tui, which has roots in Imholz, Kuoni, and Hotelplan, continues to offer enticing vacations to the Swiss populace, but their identity as Swiss businesses is now a thing of the past.
The Transition of Hotelplan and the Swiss Travel Landscape
In a significant move, Migros recently divested Hotelplan, the last major Swiss travel agency, to a German firm. The profitable vacation rental segment, Interhome, was acquired by the relatively obscure Berlin-based company Hometogo. Meanwhile, Dertour, a subsidiary of the German retailer Rewe, absorbed the remaining segments of Hotelplan. Dertour had previously acquired Kuoni a decade ago, a former rival of Hotelplan.
As it stands, the Swiss travel market is now largely shared between Tui, the world’s largest tourism operator, and Dertour. When considering Swiss and Edelweiss airlines, which operate under the German Lufthansa umbrella, it’s evident that travel in Switzerland is heavily influenced by German interests. This raises the question: how did we arrive at this point?
Hotelplan, founded by the visionary Migros creator Gottlieb Duttweiler, has become a legendary entity in Switzerland’s corporate narrative, much like Kuoni. Although these brands continue to exist, they no longer function as independent entities.
The downturn for these companies began nearly two decades ago when Tui acquired a full stake in Imholz Reisen, then the third-largest player in the market. This acquisition led to a comprehensive rebranding, as the Imholz name was ultimately retired in favor of Tui’s brand.
Martin Wittwer, who was at the helm of Tui-Suisse during this transformation and now presides over the Swiss Travel Association, notes that customer preferences drove these changes. He emphasizes that internationally oriented German tour operators possess significant economies of scale, allowing them to provide more competitive pricing.
If Tui hadn’t focused on offering affordable travel options, Swiss vacationers might have turned to German agencies or emerging online platforms to book their trips.
Industry experts argue that Tui’s entry marked the beginning of the end for independent Swiss tour operators, who fell like dominoes over the subsequent decade. The travel sector, known for its slim profit margins, tends to favor those with substantial market power who can negotiate better prices. Smaller competitors face a tough choice: either charge higher prices for the same hotels and risk losing customers or match competitors’ prices and sacrifice their profit margins.
Kuoni was the first casualty, struggling for years before Dertour acquired its tour operations in 2015, resulting in Kuoni’s exit from the Swiss stock market. Hotelplan had opportunities to bolster its market position but opted not to, remaining under the safe umbrella of Migros. Despite its less-than-stellar performance, Hotelplan’s management opted to pursue independence rather than seek out advantageous partnerships with larger international operators.
In a somewhat similar fashion to Swissair’s pre-collapse strategy, Hotelplan attempted to expand by acquiring the German company Vtours in 2019, hoping to increase its market volume. However, this move did not yield the desired results. Fast forward six years, and the pandemic prompted Migros to reassess its involvement in the travel sector, leading to Hotelplan’s sale as a more radical solution to its challenges.
Interestingly, Tui and Dertour have adopted contrasting strategies in Switzerland. Tui focuses on leveraging its globally recognized brand, while Dertour strategically operates under established Swiss brands, such as Kuoni and Helvetic Tours, maintaining a low profile.
Notably, the cultural and linguistic similarities between Swiss and German tourists have contributed to this trend. As tourists, Swiss individuals tend to exhibit preferences similar to their German counterparts, often favoring the same accommodations and experiences.
In conclusion, the once-vibrant landscape of Swiss travel agencies has dramatically transformed, with German firms now at the forefront of catering to affluent Swiss travelers. The era of independent Swiss travel agencies has faded, but the legacy of these brands endures, albeit under foreign ownership.