CEO Blog 26.08.2020

Coronavirus – how is Hapimag doing?

We will continue to feel to impact of the coronavirus crisis for a long time to come. To give you an idea of how Hapimag is doing, allow me to share with you the most important figures and developments. 

Dear Shareholders and Members 

The coronavirus still has a firm grip on the world. We are all facing up to this situation and making the best of it. The crisis is affecting us, it is affecting our company Hapimag, it is affecting the whole travel and tourism industry and it is affecting the entire global economy. I hope that you and your family are not suffering too badly from its effects.  

Some time has passed since the last CEO blog on 30 April. I am pleased to be able to give you an overview below of how our situation has developed since then and also to give you the most important figures. 
 

  • 80% of our resorts have reopened for bookings. 

  • According to our survey, 86 %of our guests feel safe and comfortable.

  • In August, 29 resorts achieved an occupancy rate of over 90 %.   

  • Summer occupancy rates in the resorts in Germany, Switzerland, Austria and Italy are good.

  • Occupancy is not high enough at resorts in southern areas. Especially those that are reached by plane. 

  • In the first half of 2020, we had to record a 63 % overall decline in overnight stays.

  • From January to the end of July, we recorded 56 % less sales compared to the previous year.

  • Thanks to consistent cost savings, we will be able to significantly reduce the loss. However, the result for 2020 will clearly be negative. 

  • We will be able to ensure liquidity, despite the lack of occupancy, thanks to the cost savings we have made and the halt to our major investments.

  • Forecasts for 2021 are very difficult. We will continue to focus heavily on costs and keeping our structures even leaner. 

  • We all need to spend as many holidays as possible at our resorts, as this is how we can support Hapimag.

Many resorts have been able to reopen, and we are very pleased to welcome our guests again. Thanks to targeted communication and various campaigns, we managed to raise occupancy rates again to a degree. Our guests feel safe and at ease thanks to the measures against the coronavirus we adopted at an early stage. According to our guest survey, 86 % give these measures a positive rating.  

The bookings situation is challenging for resorts in the south. The occupancy rate there is well below “normal” levels for the summer. Where resorts are partially fully booked, we are currently not even reaching half of the possible occupancy rate. Moreover, additional restrictions imposed by the authorities are having a tangible, negative impact on booking behaviour. We will increasingly offer available apartments not being used by our shareholders on the open market (marketing to third parties).  

Hapimag actually made a promising start to 2020. In the months of January and February, we were able to generate an increase of around 1,500 overnight stays for the 45 open resorts (+ 1.2 % compared to the previous year). After that, as announced in the CEO blog at the end of April, we had to close all resorts for two to three months, with just a few exceptions. As a result, Hapimag recorded a 63 % overall decline in overnight stays in the first half of 2020. 

In June, we were able to reopen a number of resorts. In July, the resorts in Switzerland, Germany and Austria recorded an even higher number of overnight stays than in the previous year (+ 5 %). The extraordinarily high occupancy rate of 97 % in the four Swiss resorts (previous year 82 %) is also remarkable. However, sales in the resorts fell by 56 % overall from January to the end of July, dropping from EUR 55.6 million in 2019 to EUR 24.4 million this year.


The situation remains challenging
In March 2020, we drew up a “COVID-19 Plan” to get Hapimag through the coronavirus crisis. Despite consistent cost savings, we will still have to accept a loss.

Looking ahead, we are expecting some difficult months. There is still a great deal of uncertainty in the travel market and we are seeing the infection figures in individual countries rise again. It is difficult to predict how the travel market will develop and the entire tourism industry will continue to suffer from the effects of the coronavirus well beyond 2020. 

Despite the coronavirus, we have continued to push ahead with our strategy. At the forefront of this are the interests of shareholders and members, optimising the business model and attracting new customers. I look forward to informing you about further tangible successes and developments in due course via a separate communication. 


Together, we will overcome the crisis
All in all, our initial successes, such as summer occupancy rates in certain countries, have given us reason to be confident. But the coronavirus crisis is forcing us to keep costs strictly under control. 

The next few months will present us with difficult decisions and we will take these giving full consideration to the overall welfare of all shareholders and members.  As I mentioned, we are trying to make the best of a difficult situation.  

Getting back into the black will not be easy and will require commitment from all of us – and, above all, strong solidarity with Hapimag. 
 

  • That’s why I’m asking you: please book your holiday with Hapimag. There is no better way to get Hapimag through this crisis and to support our community. 

  • You can cancel free of charge up to 8 days before arrival. We have extended this period for you: it is valid for arrivals until 30 April 2021.

I still feel extremely grateful. Grateful for the support and connection that holds us together as a family. I am counting on your support, especially in these difficult times. Please remain loyal to Hapimag. You can help us to think positively, to attract new customers, to increase occupancy and thereby generate sales in the resorts. All for our shared idea and our common cause. 

I know that this edition of the “CEO blog” doesn’t only contain good news. Honesty and transparency are more important in times of crisis than ever before. But together, we are strong. Together, we will also weather this crisis.  


If you have any questions about the developments mentioned above, please do not hesitate to use the comment function to contact us. I look forward to hearing from you. 

Until next time, best regards 

Hassan Kadbi
Chief Executive Officer

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