Le Grand Hôtel de Leysin (GHL) - Teaching note

By Fernández, Albert / Soler, Edi / Ormazabal, Gaizka

In Le Grand Hôtel de Leysin (GHL), the participant plays the role of the hotel's general manager, Sofie Keller, who must make several decisions to improve the profitability of the business. The main ones are: to decide whether to keep or stop offering the conference service, and to analyze how to react to the steep discount on the room price offered by a competitor with similar characteristics. Both decisions are framed in a context of crisis caused by COVID-19 and require a deep quantitative and qualitative analysis of the situation.

Collection: IESE (España)

Ref: CT-36-E

Format: PDF

Number of pages: 13

Publication Date: Mar 7, 2022

Language: English, Spanish

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Description

Year: 2020

Geographic Setting: Switzerland

Industry Setting: Tourism, Restaurants and Entertainment

Learning Objective

The main objective of the case is to understand the types of costs in the hotel business (variable, fixed, etc.), how to identify those that are relevant for each of the decisions, and to see how the different alternatives impact the result and / or the company's finances. It is a very suitable case for all types of cost accounting sessions, as well as quantitative decision analysis and cost systems.

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