Macroeconomics

Exchange rate appreciations and the Swiss hospitality industry

The project studies the effects of exchange rate fluctuations on the performance of the Swiss hospitality industry.

Start & End Date

01/01/2018 - 30/06/2019

Main Applicant

Blengini, I., EHL Hospitality Business School

External Funding

HES-SO

Project Description

The project analyzes how exchange rate fluctuations in Switzerland affect the performance of the hospitality sector. A special emphasis is given to pricing strategies. The problem is addressed considering different dimensions, like class, business model and geographical market. The study also considers the role of monetary policy and its effects on agents' expectations.

EHL Blog Insights

Exchange Rate trends, how do they impact hotel performance?

In this report we analyze how exchange rate fluctuations affect the hospitality industry. We consider the case of Switzerland, which is a small open economy located in the heart of the European monetary union. 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.

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