Swiss Hotels Standardize Rates To Lure U.S. Buyers

Swiss Hotels Standardize Rates To Lure U.S. Buyers

By Maria P. Vallejo

Switzerland - Twenty-four independent Swiss hotel members of Leading Hotels of the World have banded together to standardize guest room rates across all the properties.

The rates include continental breakfast, VAT and service charges in each hotel. A two-night minimum stay is required, and guests must book the accommodations through the reservation line or Leading Hotels of the World.

Rooms cost about $150 per person in a double occupancy room and $250 per person in a single room. For some hotels in the group, the pricing is significantly low, but the hoteliers agreed to the deeply discounted price to improve overall occupancy and interest in the business. Switzerland's hospitality market is recovering from a seven- to eight-year drop in occupancy and interest.

"For us it's an act of solidarity, because my average is very much higher than what is being offered," said Michael Rey, managing director of Baur au Lac in Zurich.

Hotel officials hope to increase the percentage of U.S. business travel in Switzerland with the new program. The promotion is expected to pique travel managers' interest in bringing more U.S. meeting and transient business to the hotels. U.S. business travelers account for one-third of the properties' overall business makeup. These hotels currently accommodate U.S. businesses, such as Bell Atlantic and Coca Cola, in transient, meetings and leisure stays.

"The American market is important for us," Rey said. "What we hope for is not so much the volume, but the idea that it gets some interest. We really feel that this is a turning point."

The initial promotion will run from Nov. 1, 1997, to March 31, 1999.