Open questions about a possible Swiss solution for the sale of Hotelplan

The countdown is on: In a few days, Migros is set to announce the recipient of the contract for its travel subsidiary, Hotelplan. However, one thing is certain—Migros is unlikely to secure a high price for the long-established travel group. Insiders estimate the possible purchase price in ‘Blick’ at 170 to 200 million Swiss francs – including 100 million Swiss francs of debt that Hotelplan still has to repay to the Migros-Genossenschafts-Bund (MGB).

The group's ‘crown jewel’, the profitable holiday home specialists Interhome, are valued at ‘well over 70 million francs’. This would leave little significant value for the remainder of the Hotelplan Group, which has a turnover of 1.7 billion francs and a profit margin of 1.5 per cent.

Migros reportedly prefers a complete solution offered by a consortium of Dertour (a subsidiary of the German Rewe Group) and Hometogo.  The plan: Hometogo will take over Interhome, while Dertour will acquire Hotelplan and its travel agencies. This move could have significant consequences for many Hotelplan employees, particularly those working in the branches, as reported by Travelnews.

Statement from Globetrotter boss André Lüthi

André Lüthi, CEO of the Globetrotter Group, expressed his concern about the development in a post on the LinkedIn network platform over the weekend. If Dertour takes over Hotelplan, the three largest travel companies in Switzerland – Hotelplan, Kuoni and TUI – would be in German hands,’ he writes.

‘It’s a reality we would have to face—while still asking ourselves: how did it come to this? First Kuoni, and now Hotelplan," Lüthi continues. "Are we Swiss no longer capable of running profitable large tourism companies? Or are the modest EBIT margins in the tourism industry simply no longer enough for us?’

The travel manager also wonders whether maximum returns come before Swiss home-grown talent and proud employees. ”Swiss is sold, ski resorts are sold – where is our pride?’ writes Lüthi.

The Globetrotter Group, with its twelve companies currently ranked as number 4 (editor's note: the Knecht Reisegruppe also ranks as number 4) behind Hotelplan, Kuoni and TUI, is 100 per cent Swiss-owned – and will remain so. Lüthi has received a lot of praise and support on Linkedin for his comments.

A Swiss solution is rather unlikely

There may still be a back door. Rumour has it that a Swiss family office is also bidding for Hotelplan. Is someone trying to protect the historic Hotelplan brand or keep the company in Swiss hands? A Swiss solution would undoubtedly help cushion the impact on Hotelplan employees.

However, the Swiss holiday travel market currently seems to offer few attractive options for investors. Only a few wealthy Swiss are involved in this business area – and there is little interest in Hotelplan either.

Beat Zaugg, co-owner of Scott Sports and a shareholder in the Bern-based Globetrotter Group since 2020, has declined involvement. Meanwhile, billionaire Martin Ebner, owner of Helvetic Airways, has recently invested primarily in IT, pharmaceuticals and biotech.

Samih Sawiris is also likely to be cautious given that his involvement with the now insolvent FTI Group cost him 200 million francs. Similarly, the Mantegazza family from Ticino, whose company Group Voyagers specialises in US customers, also has other priorities.

The F.G. Pfister Foundation, known for its commitment to preserving Swiss entrepreneurship, has also denied any interest in Hotelplan, according to Blick. Thomas Knecht, former head of McKinsey Switzerland and owner of Knecht Reisen in Windisch AG, might consider acquiring travel agencies and a beach holiday business for his company. However, this seems unrealistic.

It is to be hoped that clarity will soon be provided for Hotelplan employees, with transparent communication. Uncertainty about their own professional future can be particularly stressful, especially during the Christmas season, which for many is associated with reflection and hope. A quick and open decision would be a sign of respect for the employees.