Healthy demand for beach and mountain holidays, an aggressive global expansion plan and strong mountain leadership drive Club Med’s optimistic outlook for 2024
It is revealed on March 20, 2024 that Club Med, the global leader in premium all-inclusive holiday experiences, celebrated a year of resilience and significant achievements in 2023, marked by strong growth and financial performance.
The group’s 2023 results have laid a solid foundation that reinforces its market leadership in snow and sun holidays across the globe with the anticipation of a robust outlook for 2024.
Business volume amounted to €1,981M in 2023, representing an increase of 17% compared to 2022, and 16% versus 2019. Record resort operating income amounted to €174M, an increase of 64% compared to 2022, and 70% compared to 2019.
Resort capacity increased by 6% compared to 2022 with 97% upscale or very upscale capacity (+10pts vs 2019). Club Med welcomed over 1.5 million guests in 2023, a 16% year-over-year increase. This growth was driven primarily by a rebound in travel from Asia following pandemic restrictions.
The average room occupancy rate reached 70%, reflecting a 3.4 points rise from 2022. Operating margin was up 50% to 9.5%, compared with 6.2% in 2019, thanks to a successful upmarket strategy and business model optimisation.
By mid-2024, the Club Med Resort portfolio will achieve full upscale transformation to 100% Premium or Exclusive Collection.
Record performance of current first half 2024 bookings at +14% as of March 2, 2024 compared to the same period of 2023, which was already at a record level.
Within the East and South Asia, and Pacific (ESAP) region, Club Med has achieved new heights with strong demand for its Premium All-Inclusive Resorts. The ESAP region doubled its business volume of 102% year-over-year and 6% over 2019. There has been a significant upswing in the number of guests, with a remarkable 43% rise compared to 2022, and reaching pre-pandemic levels.
This momentum continues with very strong trends for the fourth Mountain Resort in Japan, Club Med Kiroro Grand, which opened in December 2023.
Focusing on Thailand and other Southeast Asia markets excluding Singapore and Malaysia, significant growth has been seen, especially in the ski and mountain business, solidifying our leadership positions in mountain destinations.
The Cluster experienced a remarkable 74% growth compared to 2022, reaching pre-pandemic levels. Thailand contributed approximately 65% of the total business volume.
The ski and mountain business proportion has been expanding across the markets. The increasing percentages per market, comparing with the total business volume from 2019 to 2023, are as follows:
*Thailand: from 33% to 50%
*Indonesia: from 29% to 35%
*India: from 6% to 19%
*Other new markets: from 24% to 44%
The ski business in Thailand is experiencing a significant upward trend, with a growth of 75% compared to 2019. This remarkable success is largely attributed to effective diversification strategies. Volume has been expanded to well-known Club Med ski resorts in Hokkaido, and notably to other destinations, particularly in Europe, where there has been an impressive increase of about 330% compared to 2019.
This increase can be attributed in part to the revenge travel phenomenon, as well as the success of the ski and mountain business (+75% vs pre-pandemic). This success was supported by the opening of Club Med Kiroro Peak in December 2022, a new mountain resort in Hokkaido, Japan, and a diversification strategy that introduced new ski destinations, particularly European mountain destinations.
Reflecting on the results of 2023, Rachael Harding, CEO of Club Med ESAP Markets, said “Club Med’s exceptional results are a testament to our market leadership in premium, all-inclusive holidays, especially in our Mountain Resorts. Embracing our refreshed brand identity and campaign, ‘That’s l’Esprit Libre’, we will continue to create experiences that allow our guests to disconnect from the worries and mental burden of everyday life to fully embrace the present.
This will be achieved through doubling down on the essence of holidays with Club Med where well-designed spaces, curated sports and activities, signature festive ambience and our international team of G.Os are synonymous with our premium all-inclusive programme. With a robust expansion plan, Club Med is well-positioned to cater to the travellers of today and tomorrow.”
Bruno Courbet, Country Director, Thailand and New Markets commented that, “This growth is a testament to Club Med’s unique all-inclusive offer, particularly notable in our ski destinations. With over 15 ski resorts in France and numerous Club Med properties worldwide, we’ve successfully diversified and expanded our offerings, bolstering our success. Looking ahead to 2024, we anticipate even greater diversification opportunities.
For instance, Thai travellers will benefit from increased travel ease, such as visa-free access to China starting from March 1, 2024, and electronic visas for Canada. Moreover, with the rise in direct flights to family-friendly destinations like Maldives, Bali, and Lijiang, we’re better positioned to meet the evolving needs of our discerning clientele, reaffirming our commitment to delivering unparalleled holiday experiences.”
