Following a strong recovery since the second semester of 2022, Club Med, pioneers of premium all-inclusive beach and mountain holidays, has achieved record high figures for the first half of 2023, despite the macro-economic and inflationary context.
In the first half of 2023, Club Med welcomed 766,000 customers to its close to 70 resorts worldwide. This is an increase of 28% when compared to the first half of 2022 and up 2% when compared to pre-pandemic levels. Business volume for the company amounted to €1,061 million, representing an increase of 32% compared to that of the same period in 2022 (€802 million), and an increase of 20% from the same period in 2019. Global resort capacity increased by 13% when compared to 2022 and recovered to 99.2% of 2019 levels.
Despite the impact of economic slowdown, operating income reached a record high level of €159 million, which is an increase of 180% when compared to 2022, and more than 100% when compared to the same period of 2019. The Global ADR (average daily rate: average price per day) amounted to €234, representing an increase of about 11% and 32% as compared with the same period of 2022 and 2019 respectively. This increase is mainly due to the implementation of upscaling and massive investments in recent years, which has seen the upgrading of Club Med resorts portfolio, with 97% of capacity (+11 points vs 2019) now in the high-end (Premium) and very high-end (Exclusive Collection) categories.
For instance, Club Med Exclusive Resorts Collection portfolio, one of the strategic product ranges of Club Med, has seen its business volume increased by 35% and its number of customers increased by 22% when compared to the same period of 2022. This increase is mainly driven by the successful first winter season of Club Med Val d’Isère, the first Club Med Exclusive Collection Resort in the Alps and the recent renovation of Club Med’s legendary Club Med 2 sailing yacht.
Club Med within a South African context
Club Med had a record first half of 2023 in South Africa with a 76% increase in business volume when compared to 2022. This was driven by the appeal of the company’s key snow destinations (namely in the European Alps), Mauritius, and the continued growth of its resort in the Seychelles, among travellers from SA. The Maldives, Phuket and Bali are also on the rise when it comes to bookings by travellers from SA, and are destinations likely to fuel 2024 growth.
In the second half of 2023, the company shared news about Club Med Tinley, the first Club Med resort in South Africa, representing an investment of over R2 billion, which is estimated to open in 2026. This ground-breaking development is a result of a collaborative partnership between the esteemed operators, Club Med, and the Collins Residential Consortium, developers of Club Med Tinley. As the first of its kind in the country, this all-inclusive resort is poised to make contributions to the region, ushering in opportunities for job creation and sustainable growth.
Olivier Perillat-Piratoine, MD of Club Med South Africa noted “After unveiling the exciting plans for our upcoming Club Med South African resort, the response from both media and stakeholders has been nothing short of phenomenal. This project promises not only to elevate our brand presence but also to leave an indelible mark on the nation. It’s heartening to witness the enthusiasm it has ignited among South Africans, who have long associated us with sun-soaked getaways and mountain retreats abroad. With nearly four decades of successful operations through our commercial office, the addition of this new resort truly solidifies our position as ‘proudly South African’ more than ever before.”
Business activity in Europe continued to grow.
The business volume of Europe stood at €621 million and increased by 14.3% and 12.7% compared to the same period of 2022 and 2019 respectively, despite concerns stemming from the sensitive geopolitical and inflationary context. The capacity of resorts in EMEA increased by 12,5% when compared to the same period of 2022 and recovered to 91.4% of the levels in 2019. The number of customers amounted to over 314,000, 8% more than in the same period of 2022.
Apart from the recovery of market demand, the newly opened winter resorts in the Alps in December 2022: Club Med Tignes, and the first Exclusive Collection Mountain resort, Club Med Val d’Isère, also contributed to the significant growth in European business activity.
After a strong recovery in 2022, the Americas continued to show a business performance.
During the first half of 2023, the Americas region saw strong growth. Business volume increased by 35% when compared to the first half of 2022 and increased by 65% when compared to the same period of 2019. The number of customers amounted to 207,000, increasing by 4% compared to the first half of 2022.
The North America region benefitted from the Canada rebound as pandemic travel restrictions were maintained until February 2022 and achieved +25% of business volume when compared to the first half of 2022. This was despite the closure of Club Med Sandpiper in 2022, and the slowdown of the US economy.
In South America, Club Med seized the opportunities of the strong recovery of the Brazilian domestic market and the solid momentum of ski vacations in the Alps. During the first half of 2023, business volume increased by 54% and 110% when compared to the same period of 2022 and 2019 respectively.
Club Med’s recovery in Asia
After a heavy impact by the Covid-19 pandemic, Asia has seen a recovery due to the easing of travel restrictions. During the first half of 2023 in Asia, Club Med saw business volume increase by 247% when compared to the first half of 2022 and recovered to 92.7% of the same period in 2019. The number of customers is up by over 125% and exceeding the pre-pandemic level by almost 10%. This increase is due to several reasons: the “Revenge Travel” phenomenon in Asia-Pacific, a momentum in domestic travel in China, and the success of the new Club Med Kiroro Peak, the third mountain Resort in Hokkaido, Japan.
Outlook for the second half 2023
In the second half of 2023, Club Med continues to strengthen its upscale positioning with the opening of 4 new Premium & Exclusive Collection Resorts.
- La Rosière, Exclusive Collection Space in the French Alps, with its 43 luxury Suites-Apartments.
- Club Med Kiroro Grand, nestled in Kiroro domain, in Hokkaido, Japan.
In China, two city hotels, under a new product line Urban Oasis by Club Med:
- Urban Oasis Nanjing by Club Med,
- Urban Oasis Taicang by Club Med.
Altogether, for the 2023-2025 period, Club Med will open 17 new resorts, as well as more than 10 extensions/renovations of existing resorts, while studying other opportunities, with a focus on Middle East and Southeast Asia.
