Niesenbahn Reports 87,000 Overnight Stays, 96% Satisfied Guests, 93% Satisfied Employees
Niesenbahn reports 87,000 overnight stays, 96% satisfied guests, 93% satisfied employees. These are selected examples from the value creation analysis, from the guest and employee surveys. Amazing results for the small company, which generates 0.4% of the turnover of all Swiss mountain railways and employs 4.2% of all Swiss mountain railway employees in summer. – To the somewhat casual question: «What does the Niesenbahn do with its mountain, its railway and its pub?» those responsible wanted precise, scientific answers. EBP (Ernst Basler und Partner AG, Zurich), the technically and economically independent company specializing in contract research, was entrusted with the task. This with the aim of obtaining concrete starting points for corporate development and corporate communication. The study was created based on current data from 2020/2021.
Mountain railways and excursion destinations are often reduced to their tourism benefits and measured by their frequency and turnover. However, these key figures can only insufficiently reflect the value of a mountain railway as an employer, investor, taxpayer and recipient of advance payments. How can the value of the Niesenbahn be recorded as holistically as possible? Which stakeholder groups must be taken into account? How well does the Niesenbahn serve customer needs? How can the offer be improved? What role does the Niesenbahn play as a regional employer?
Aim: Comprehensive impact model
The Niesenbahn got to the bottom of these questions and commissioned EBP, Ernst Basler and Partner AG (Zurich) to draw up an economic, touristic and social impact analysis. It shows the value and the regional economic importance of the Niesenbahn in a comprehensive perspective. In addition to determining the regional added value of the Niesenbahn, a survey of guest needs and a detailed study of employee satisfaction were carried out in 2021, the second year of Corona. The main aim of the study was to depict the benefits of the Niesenbahn as comprehensively as possible in an impact model. In addition, the information obtained in this way serves to further develop the offer for the guests, the cooperation with partners in the regional and cantonal economy and politics and the Niesenbahn as an attractive employer. The results were presented at the General Assembly on May 11, 2022.
Representativeness of the guest survey
The basis for calculating the direct and indirect added value was the annual financial statement including investments and the expenses of guests and employees. The guest survey began in April 2021 to collect information about the guest structure and guest needs of day tourists and overnight guests. During the railway season (April to November), interviewers conducted short interviews with guests on selected days on the Niesenbahn. The aim was to include domestic and foreign tourists as well as locals in the survey as representatively as possible. A total of over 2,500 people took part in the guest survey, including around 1,500 reservation guests and 1,000 spontaneous guests. Of the 1,000 spontaneous guests, 47% answered the following online survey.
The main goal of the employee survey: determining satisfaction
A total of 82% of employees completed the survey. The information from the survey was evaluated in such a way that the anonymity of the respondents was guaranteed. The 83 employees of the Niesenbahn are spread over three business areas. More than half work in the Berghaus (e.g. kitchen, service), almost a third at the Bergbahn (car drivers) and the remaining employees in marketing, sales and management.
Surprising economic effects
To calculate the regional added value, a geographical perimeter was defined, which differentiates between local guests, guests from the region and guests from outside the region. All municipalities within a radius of a maximum of 30 minutes' travel time belong to "Niesen nearby". "Niesen wider area" includes all communities within a radius of approx. 30-45 minutes travel time, which equates the "Niesen region" almost congruently with the "Bernese Oberland".
In the reference year 2021, NIESENBAHN AG triggered a total of 87,000 overnight stays and 47 million francs in direct and indirect sales in Switzerland, more than half of them in the Niesen region itself. The gross value added amounted to 23 million francs. In addition, the NIESENBAHN AG has an employment effect of 188 full-time positions on the whole of Switzerland and 91 percent of the guests surveyed rate the value of the Niesenbahn for the regional economy and population as high.
Guests in the Bernese Oberland spend CHF 16 million
The guests of the Niesenbahn make a substantial contribution to tourism value creation in the Bernese Oberland. On average, guests spent CHF 141 per person per day. Locals and day visitors spent about the same amount (103 and 100 CHF respectively). As expected, overnight stays in hotels had the highest expenditure with an average of CHF 222 per overnight stay. Compared to other tourist regions, the guests of the Niesenbahn make very high daily expenses. In addition to expenses for the mountain railway, the guests made other tourist expenses. For locals and day visitors, spending on the Niesen accounted for over 50% of total daily spending. Hotel guests made the highest expenditures in the region, namely CHF 158 per day and person. Of the CHF 23.2 million that guests spent in 2021, CHF 18.8 million CHF can be linked directly to the Niesen visit. 85% or CHF 16 million of this is attributable to the Bernese Oberland.
47.4 million francs turnover in Switzerland
Overall, the Niesenbahn generated direct and indirect sales of CHF 47.4 million in Switzerland in 2021 - with its own sales of around CHF 5 million. The fact that the Niesenbahn purchases many services in the region and that many employees live in the region is a key reason why more than half of the sales, or CHF 27.8 million, were generated in the Niesen region itself. The biggest beneficiaries of the Niesenbahn are companies in the hospitality industry (hotels and restaurants). These have a share of 18% (CHF 8.5 million). The construction industry also benefited with a share of 8% (CHF 4.0 million).
76,560 overnight stays triggered in the Bernese Oberland
The overnight guests stayed an average of 4 to 5 nights in the vicinity of the Niesenbahn. In 2021, Swiss tourism benefited from more than 87,000 overnight stays by guests on the Niesenbahn. Of this, 88% was spent in the Bernese Oberland, which corresponds to around 76,560 overnight stays. A third of the overnight stays were in hotels (28,830 or 33%). Roughly the same number of overnight stays were in rented holiday apartments (22%) and non-hotel accommodation (21%). The remaining overnight stays were spent with relatives/acquaintances (14%) and in their own holiday home.
Similar employment effect as the Zermatt Unplugged music festival
Considering the whole of Switzerland, the Niesenbahn 2021 triggered an employment effect of a total of 188 full-time equivalents (FTE). Around 127 FTEs (68%) of these were performed in the Niesen region (directly and indirectly). Around 61 FTEs (32%) were in the rest of Switzerland. Comparing these results with similar studies in a different context shows that the employment effect of the Niesenbahn is similar to that of the Zermatt Unplugged Music Festival (190 FTE), significantly smaller than that of a World Ski Championships (1,330 FTE), but greater than for all ski lifts in Ticino combined (129 FTE).
96% satisfied guests
Almost all of the guests surveyed at the Niesenbahn and the Berghaus (96%) stated that they liked the visit a lot or very much overall. In particular, the cleanliness (99%) and the hospitality of the staff (94%) contributed to the very high level of satisfaction. Thanks to the good transport infrastructure, the Niesen is easily accessible from the point of view of the guests surveyed (95%) and offers unique nature experiences (92%). Locals in particular (97%) appreciate the Niesenbahn for its range of attractive events and attractions. In contrast to the big mountain railways (Jungfraujoch, Gornergrat, Rigi), which attract many foreign tourists, the Niesenbahn serves a very local clientele. High-quality tourist services are key here in order to be able to welcome this clientele not just once, but several times. 89% of the guests rate the services at the Niesen as good to very good. 94% of the regional guests have already been to the Niesen.
Of great value to the region
The Niesen can be recognized from afar by its almost perfect pyramid shape and is a fixed point in the landscape of the region. In addition to being a destination to enjoy the view and the 360° panorama, the Niesenbahn has a high to very high value for the regional economy and population for 91% of the guests surveyed. The closer the guests live to the Niesen, the more positive the rating. Many guests highlight the Berghaus (ambience, quality, staff), the cultural events and the ride on the nostalgic funicular. Guests also appreciate that many employees come from the region.
Happy employees
Almost all employees like coming to work (93%), are very satisfied with the Niesenbahn as an employer (86%) and feel a strong bond with it (80%). This is also supported by the high proportion of those who see themselves still with the Niesenbahn in five years (46%). This attitude is also reflected in the loyalty of the employees: a good 36% have been working for the Niesenbahn for more than 5 years. Almost all employees (98%) would recommend the Niesenbahn as an employer.
Interesting comparison
Finally, it can be stated that the daily expenses of the guests at the Niesen are comparatively very high. This is shown by comparisons with other tourism value-added studies carried out by EBP: while day visitors spend CHF 102 a day on the Niesen, day visitors spend CHF 73 in the Interlaken region, CHF 53 in the canton of Appenzell and CHF 43 in the Rigi region.
potential for further development
The study provides numerous approaches for the further development of NIESENBAHN AG. Urs Wohler, Managing Director of NIESENBAHN AG, states: "For example, the online booking process is sometimes judged to be complicated, time-consuming and confusing. There is also potential for increasing the proportion of guests who travel by public transport (22%). In addition, some of the latter would like better coordinated public transport connections. The "Niesendörfli" playground, which is visited by 24% of the guests, could be "designed to be more exciting", and a "summit circular route" would also be desirable." The concerns of employees continue to have high priority within the framework of the social sustainability dimension. In this way, the question should be answered
What is important?
Chairman of the Board of Directors Dr. Daniel Fischer is impressed by the results of the impact analysis: "For the Board of Directors, the high value of the personal experiences of Niesen guests is an important basis for the further development of the company." The study also confirms that several factors are important for a convincing overall impression of the guests: the employees, the experience in the Berghaus, the view and the nostalgic train journey.
"Comprehensive valuation of the Niesenbahn 2021", isavailable on request from NIESENBAHN AG and EBP.
Transferability to other companies
EBP and NIESENBAHN AG make the knowledge and methodology available to other interested companies who would like to have a three-dimensional study carried out (value creation analysis, guest survey, employee survey).
