How we work with Swiss Hotel Management Companies
WIR provides services, exclusively, to companies in Hospitality, Construction, Manufacturing, Retail and Services. Companies also have to be well-established, profitable and creditworthy to participate.
Hotels market their product three (3) ways: 1. In-house Sales, where all marketing, advertising, administration, etc. costs are charged against the sale. 2. Outsourced Sales (OTAs), where the only cost might be the room cleaning, which might be $20. A 1,000-room
hotel, on the average, will have 250 vacant rooms. Outsourced to an OTA (Expedia, et al), a $200 room might
sell for $95 and net the hotel $40. Deduct the cleaning cost and the profit is $20.
3. Outsourced Sales (Trade System) The same room, sold via the trade system, generates a profit of $180.
Switzerland’s WIR Trade System is the only model producing such results. A duplicate is being created for
Of the 2,500 hotels and resorts in Switzerland, 548 have joined a network that uses a unique financial product to take business away from the competition. A U.S.-based operation is being launched. We increase, quantifiably, a hotel and the management company’s revenues and we are looking to affiliate with a U.S. hotel company.
With that kind of profitability, the Hawk Group implemented a sales initiative to find new Swiss clients for WIR and generate transactions on their behalf, while organizing to bring the American Trade System (ATS) to the U.S. We are Outsourced Service Providers (OSP) and function as brokers.
Hotel Case Study: A hotel (and all companies) qualifies by providing these metrics: 1. Amount of current sales to corporate entities. 2. Estimated amount of unused and unsold capacity. 3. Actual cost of delivering a certain portion of the vacancy.
A trade account is opened and a Line Of Credit, in WIR Francs, extended, secured with a promissory note. While the LOC is in use, borrower pays interest in cash and retires the principal using WIR Francs. From the metrics, a Trade Budget is extrapolated and the hotel makes dual-currency sales while, simultaneously, making dual-currency purchases, keeping the trade account in balance, while meeting the terms of the budget.
The WIR Trade System and the WIR Bank
To: Hotel Management Companies From: The Hawk Group, an Outsourced Service Provider (OSP) to the hospitality industry. Re: Sell a portion of your excess capacity, at rack rates, for cash…guaranteed.
After a hotel is identified, we contact the management company and secure the operation’s metrics. From them we extrapolate a trade program, quantifying the amount of business we’ll conduct and, since the hotel’s Incremental Cost Factor is known, the profit margin of each transaction is quantified, as well as the increase in taxable income for the hotel and for the management company. Swiss hotel management companies use the profits we generate, as an incentive, to secure new management contracts from other hotel operations.
Switzerland's WIR Bank has created, separately from the banking operation, a private economic, finance, credit and monetary system, referred to as the WIR Trade System, not subject to banking laws. WIR members use a private currency, the WIR Franc, together with Swiss Francs, to conduct sales and purchases. WIR has 60,000 business account-holders, generating 6.5 billion dollars in dual-currency transactions.
The construction company, as the buyer, purchases $100,000 in hotel services for $50,000. The hotel, as the seller, sells $100,000 in services and receives 100% payment in cash. The catalyst is the WIR money, which provides terms unattainable in the cash-only world and gives both parties the incentive to act.
A local construction company spends approximately $100K, annually, for hotel services. The hotel offers to provide the services at rack rates and accept, as payment, 50% in Swiss Francs and 50% in WIR Francs. The construction company also becomes a member and secures a line of credit from which 50,000 WIR Francs are used to complete the transaction with the hotel. The company provides its own construction services to other members using WIR Francs from those transactions to retire the debt.