Club Med has identified the United Kingdom as a significant contributor to its robust 2023 performance.
- The company’s business volume in the UK grew by an impressive 30% in 2023, reaching €93 million.
- A record €174 million in resorts operating income was achieved, a 64% increase from the previous year.
- Plans for four new premium resorts, including two each in France and China, illustrate ongoing expansion.
- Club Med’s strategic market shift focuses on premium and exclusive collections, reflecting substantial growth.
Club Med, an all-inclusive holiday giant, has highlighted the United Kingdom’s role in its exceptional 2023 performance. Business volume from the UK surged by 30% in the past year, hitting €93 million, underscoring the region’s significance as the second largest market in the Alps, following France. This growth marks one of the company’s strongest performances in Europe, indicating the UK’s pivotal role in the company’s strategic landscape.
The operator reported a record-breaking €174 million in resorts operating income for 2023, reflecting a 64% increase year-on-year and a more than 70% rise compared to 2019. The company’s strategic upmarket transformation is nearing completion, as it positions itself for sustained success in the premium segment. Nearly €2 billion in sales were recorded, affirming the strategy’s efficacy and the strong demand for premium holiday experiences.
In 2023, Club Med managed 139,000 customers in its ‘Exclusive Collection’ properties, indicating a 17% increase over the previous year, while mountain resort stays rose to 355,000, a 26% increase. The average daily rate in Europe rose to €239, reflecting an over 8% increase due in part to inflation and expanding capacity in premium and ski resorts. This suggests a strategic alignment with market demands for luxury and exclusivity.
Club Med’s growth plans for 2024 include the launch of four new premium resorts, two in France and two in China, further solidifying its market position. The announcement aligns with the company’s intention to bolster its presence in key destinations such as southern Europe, the Indian Ocean, the Caribbean, and Southeast Asia. By April, the company aims to have all its properties classified as premium and exclusive, indicating a comprehensive upscale shift.
Henri Giscard d’Estaing, Club Med’s President and Chief Executive, articulated that the company’s transformation towards an upscale, global-local focus, initiated in 2004, is realising significant benefits. In 2023, Club Med’s business volume reached nearly €2 billion for the first time, with an operating margin increase of 50%, reinforcing the success of its evolved business model.
Club Med’s 2023 results underscore the successful execution of its upscale transformation and strategic market positioning.
