While still affected by the Covid-19 crisis, trends in business volume for pioneers of all-inclusive holidays, Club Med, has evolved differently in various geographical areas.
In the 1st half of 2022 (H1 22) Club Med saw its business volume increase by more than 300% compared to the 1st half of 2021 (H1 21) when ski resorts were closed in France, and international travel was largely restricted. In total, Club Med recorded a turnover of €811 million in H1 22, only 10% lower than in H1 19.
In Europe and the Americas (North and South), the 5th wave of Covid-19 impacted activity until February. From March, Club Med experienced a very strong rebound taking advantage of the “Revenge Travel” phenomenon:
- Europe returned to the level of H1 19 (-1%), despite concerns stemming from the war in Ukraine, and capacity being down by 19%;
- The Americas were up 22% compared with H1 19, due to several reasons: the “Revenge Travel” phenomenon in the United States and Canada from the end of February, the success of the new Club Med Québec Charlevoix in Canada and Club Med Miches in the Dominican Republic, and a strong domestic demand in Brazil.
- In Asia, and particularly in China, the borders closure and confinement measures have not allowed activity to return to pre-pandemic levels: Asia was therefore at -73% in H1 22 compared with H1 19, a significant decrease directly linked to the impact of Covid19 and a decrease in capacity of -23%. However, Henri Giscard d’Estaing, the president of Club Med, insists this region still has great potential. After three sites in 2022, Club Med will open four next year. As soon as the restrictions are eased, the frequency of travel will increase.
- After the disruption of Omicron in South Africa, the country is back to pre-Covid levels of business on H2 22 departures. This is due to the solid performance of Indian Ocean Island resorts in Mauritius, Maldives and Seychelles – already a new favourite destination of South African guests. Says MD of Club Med Southern Africa, Olivier Perillat-Piratoine, “Very encouraging and consistent, 2023 has a solid start with double-digit growth. We are seeing outstanding sales on the Mountain destinations of France and Italy where our ski resorts cater for families and groups of friends alike. Due to increased flight capacity, our long-haul portfolio is also showing great signs of a rebound, particularly in Southeast Asia”.
Occupancy rates in Europe and the Americas were close to those in H1 2019. The ADR (average daily rate: average price per day) amounted to €214, up 19% compared with H1 19. This increase is mainly due to the implementation of upscaling and massive investments in recent years, which have changed the portfolio of Club Med Resorts, with 95% of capacity now in the high-end (Premium) and very high-end (Exclusive Collection) categories.
Much-loved by South Africans, the popular Exclusive Collection resort in Mauritius, La Plantation d’Albion underwent a massive refurbishment in the first half of 2022 before opening its doors again in June 2022. Guests can now enjoy a brand-new beach bar with an authentic Mauritian feel and gourmet food, a renovated adults only Zen Zone and specialty restaurant plus a revamped main bar.
2022 also saw the relaunch of Club Med Tignes and Val d’Isere in the French Alps, Marbella in Spain and the opening of Club Med Kiroro in Japan. In addition to this, Club Med is also betting on Africa. “We have an exciting new project in South Africa that we are currently working on. As a country it is the ideal destination for combining a beach stay with a once-in-a-lifetime visit to animal parks,” specifies Henri Giscard d’Estaing.
Thanks to the strong performances of Europe and the Americas, and despite the impact of Covid in Asia, operating income was €60 million compared to a loss of €(231)m in H1 21, massively affected by the health crisis.
Adjusted EBITDA amounted to €164m in H1 22 compared with €(127.1)m a year earlier.
