Strong 2023 performance powers Club Med’s 2024 growth ambitions

Club Med has reported a fruitful 2023 that brought in record resort operating income as well as higher business volume, operating margin, average occupancy rate, resort capacity, and visitation, with performance paving the way for a bullish 2024.

Globally, the specialist in premium all-inclusive holidays, recorded 1.9 billion euros (US$2.1 billion) in business volume, up 17 per cent from 2022 and 16 per cent from 2019.

Club Med anticipates a bright year ahead in 2024, following the success in 2023

Resort operating income hit a record high of 174 million euros, an increase of 64 per cent over 2022 and 70 per cent over 2019.

Operating margin is up 50 percentage points to 9.5 per cent, compared with 6.2 per cent in 2019, thanks to a successful upmarket strategy and business model optimisation.

Club Med also expanded its resort capacity by six per cent over 2022 and brought in more than 1.5 million guests, a 16 per cent year-over-year increase that was largely driven by a rebound in travel from Asia following the end of pandemic restrictions. The average room occupancy rate also reached 70 per cent, reflecting a 3.4-point improvement on 2022.

Strong business performance in 2023 has so far flowed positively into the new year, with record bookings in 1H2024. As of March 2, 2024, the company has 14 per cent more bookings compared to the same period of 2023, which was already at a record level.

Club Med noted that the East and South Asia, and Pacific (ESAP) region had also contributed well to its Premium All-Inclusive Resorts in 2023. Business volume was up 102 per cent year-on-year and six per cent over 2019. Guest numbers had also reach pre-pandemic levels, driven by the revenge travel phenomenon, a strong momentum on domestic travel in Japan & Malaysia, and the success of its mountain business ( up 44 per cent over pre-pandemic performance).

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.”

Harding also pointed to the company’s “robust expansion plan” as a means to meet the needs of its travelling clientele. In the pipeline now are three properties – one in Thailand this year, one in Malaysia in 2025, and one in South Africa come 2026.

Looking ahead, Club Med has committed to maintaining its sustainable tourism development focus and to spotlight its summer mountain resort offerings.

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