UK becomes ‘key contributor’ as Club Med reports record 2023 performance

The UK has become a key contributor to Club Med with business volume growth of 30% last year to €93 million compared to pre-pandemic 2019 and up 17% over 2022.

The performance was one of the strongest in Europe and saw the UK as the second biggest market in terms of business volume in the Alps after France.

The all-inclusive operator reported a record resorts operating income of €174 million for 2023, up 64% year-on-year and more than 70% against 2019 as it came close to completing a transformational shift up market.

Reporting record-breaking figures of almost €2 billion in sales, the company unveiled plans for four new premium resorts this year – two in France and two in China. 

The company said: “Club Med continues to push a very strong growth strategy in the UK through increasing its snow leadership, while expanding its sun market towards key destinations in southern Europe – Spain and Turkey – and worldwide – Indian Ocean, Caribbean sea, southeast Asia.”

A total of 139,000 customers were handled by Club Med’s ‘Exclusive Collection’ properties, a 17% increase over 2022, while those staying in mountain resorts totalled 355,000, up 26%.

The average daily rate in Europe was €239, increasing by more than 8% compared to 2022, due to the inflation, the growth of capacity of premium and ski resorts, according to the operator.

“After three years of massive impart by the pandemic, Asia saw its business volume almost double year-over-year, taking full advantage of revenge travel,” Club Med said.

“The trends for the first half of 2024, driven in particular by continued growth in demand for the mountain vacation in Club Med, and the ‘revenge travel’ phenomenon in Asia, reflect a new phase of growth, compared to the same period of 2023, which has already seen historical figures.”

Overall bookings for the first six months of the year are up 14% year-on-year with Europe up 7%, the Americas 11% and Asia 51%, helped by the gradual recovery of the tourism sector in China.

The group expects the entire portfolio to consist of premium and exclusive collection resorts by April.

“Club Med’s record business performance in 2023 is the result of the transformation of its business model towards an upscale, glocal  – global approach with a local focus – and happy digital offering, initiated in 2004,” the company said.

President and chief executive Henri Giscard d’Estaing said: “After returning to its pre-pandemic level as early as in 2022, Club Med reached nearly €2 billion in business volume for the first time in its history.

“The increase of 50% of its operating margin, close to 10%, and its record net profit demonstrates the success of Club Med’s new business model, whose transformation started in 2004.

“2024 will mark the successful finalisation of the move upmarket of our resort portfolio. In its 74-year history, Club Med has never had such a desirable portfolio of resorts, either new, recent, or renovated.”

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