SWITZERLAND is not about to reduce its prices even though the lifting of the cap on the euro-Swiss franc exchange rate and the depreciation of a basket of Asian currencies are making the destination less affordable.
“We have never been a cheap destination. Our challenge is how to become more premium than we already are, not to become cheaper. We don’t compete on the price level…(Switzerland) is expensive but it is worth the price,” said Simon Bosshart, director for China, Asia-Pacific and global accounts at Switzerland Tourism.
While not much can be done on the pricing side, Bosshart thinks that certain segments of the Swiss tourism industry can be even more efficient. “Switzerland has a very small, structured industry. There is a certain small potential to improve and leverage certain activities. We have lots of small hotels that have to synergise and work together,” he said.
Noting a “clear shift” away from group to FIT travel in markets like South Korea, China and Japan, there now exists a “huge space” to tap Asian FITs, said Bosshart.
Tourists from China, Japan and South-east Asia traditionally travelled in groups except for Singapore which is “very much FIT,” he added.
Switzerland is hence promoting itself as a single destination to FITs, such as through marketing lesser-known attractions in small villages, said Bosshart.
Based on bookings, Bosshart claims that pricing is not a big issue for Asians as travellers might combine Switzerland with other European countries.
Travel to Switzerland this year also appears unaffected as contracting for 2015 closed before the currency changes, although the impacts on 2016 will remain to be seen, he noted.
