Following record figures in 2023, Club Med has achieved a new record performance for the first half of 2024. In an increasingly challenging French and global context, Club Med has again demonstrated the success and relevance of its strategy to move glocal and upmarket, and its profound business model transformation.
Henri Giscard d’Estaing, President of Club Med, stated: “This semester marks a decisive turning point: Club Med’s move upmarket is now achieved, with 100% of its Resorts now upscale or very upscale.
I am very proud of the collective transformation accomplished by our teams over the past two decades. Being the employer of choice in the hospitality industry is one of our main priorities, which is contributing decisively to our success.
During the first half of 2024, Club Med also made significant progress in its Happy Digital pillar and its AI strategy to improve the customer experience and our efficiency.
After the novelties of the first half of the year, our ambition is to continue to elevate our existing portfolio which are nestled in the most beautiful places around the world, and open new Resorts in 2024 and beyond, offering our global customers a premium all-inclusive holiday experience – That’s L’Esprit Libre.
As part of our strategic priorities, our commitment to sustainable tourism is being reinforced in our Happy to Care scale-up initiative, where Club Med will commit to achieve an even better level in giving back locally and achieving sustainable development. “
In H1 2024, Club Med realized a record-breaking business performance, after a H1 23 that was already a record
In H1 2024, Club Med’s business accelerated, especially in Q1 around all business units and achieved a record-breaking performance. This increase is driven by the significant growth of Mountain and long-haul destinations, following their strong rebound in 2023.
The Global ADR (Average Daily Rate) posted an increase of +8% compared to H1 2023.
Resorts Operating Income amounted to €139M, increasing by +11% compared to H1 2023. All geographic areas improved their Operating Income Villages.
Regarding the 2 strategic product lines:
–Mountain
During H1 2024, Club Med has seen the Business Volume of its Mountain Resorts increase by more than +22% compared to the same period in 2023. Its number of customers increased by
+12%, and its ADR was up by +8% compared to the same period of 2023. This increase is mainly due to the massive investment in recent years to upgrade the mountain Resort portfolio, with the opening of new Resorts in the Alps, Canada and in Japan, and to the continued internationalization of customers benefiting from the unmatched and seamless family offer in the most exceptional high altitude ski resorts of the world.
-Exclusive Collection
Club Med Exclusive Collection’ portfolio has seen its Business Volume increase by +11% and its number of customers by +5% compared to the same period of 2023.
During H1 2024, Club Med has seen the Business Volume of its Mountain Resorts increase by more than +22% compared to the same period in 2023. Its number of customers increased by
+12%, and its ADR was up by +8% compared to the same period of 2023. This increase is mainly due to the massive investment in recent years to upgrade the mountain Resort portfolio, with the opening of new Resorts in the Alps, Canada and in Japan, and to the continued
In H1 24, all geographic Business Units achieved progress compared to H1 23
-Activity in Europe continued to grow
The Business Volume issued from Europe and Africa stood at €653M and increased by +6% compared to H1 2023, thanks to a record Q1 towards Mountain & Long Haul (Caribbean and Southeast Asia mainly), and despite a challenging context with the situation in Israel and the Russia-Ukraine war, 310,000 clients from the Europe and Africa Business units traveled to Club Med around the world.
In December 2023, the newly opened La Rosière Exclusive Collection space in the French Alps, composed of 43 Suites attached to the La Rosière Resort, contributed to the upscale capacity and growth in European Business volume.
In H1 2024, France remained the largest issuing market worldwide for Club Med, with a Business Volume of €330M, increasing by +8% compared to H1 2023, accounting for a third of global Business Volume.
-After a very strong growth in 2023, the Americas (North & South) continued to show a positive business performance
The issuing Business volume of the Americas region amounted to €314M and increased by +10% as compared to H1 2023, sending 213,000 clients to Club Med Resorts.
The North American region recorded an increase of its USA Business volume by +19%, benefiting from a strong demand for the French Alps, offering an extremely competitive ski experience compared to US destinations, and for the Caribbean Resorts.
After becoming the second worldwide sales market in terms of Business Volume in 2023, Brazil remained in this position for H1 2024, with a Business Volume increasing by +6% compared to H1 2023.
-Asia-Pacific recorded a strong rebound following the lifting of travel restrictions and the success of the Hokkaido Resorts, in Japan
The business Volume of Club Med in Asia Pacific increased by +33% compared to the same period in 2023, sending 255,000 clients to Club Med Resorts.
These results were driven by the successful recent opening of new ski Resorts in Hokkaido, in Japan, among which Club Med Kiroro Grand at the end of 2023, which contributed significantly to this growth.
Following the recovery after reopening, Club Med China continued to witness a travel rebound and gaining market share in the first half of 2024, with Business Volume increasing by +33% compared to H1 2023, despite the macro-economic slowdown. China outbound business increased by 5 times as compared to the same period in 2023 but is still half of pre-Covid level.
In H1 2024, Club Med finalized the transformation of its Resort portfolio and will continue its openings and renovations dynamic during H2.
-Since April 2024, 100% of Club Med’s capacity is now Upscale or Very Upscale
Club Med initiated in 2004 the transformation of its business model towards an upscale, glocal and experiential all-inclusive holiday offering for families and active couples. Over the last 20 years, the Resort portfolio has completely been transformed, representing an unprecedented collective work within the hotel industry, with the closure of 85 Resorts, the opening of more than 50 exceptional Resorts and the renovation of around 20 Resorts.
In 74 years of history, Club Med never had such a beautiful and high-end portfolio of Resorts. With the closure in March 2024 of Club Med Arc Extreme and Club Med Serre Chevalier (which will be renovated and upscaled), the last “3 Trident’’ resorts, Club Med achieved this transformation: 100% of Club Med capacity is now Premium or Exclusive Collection.
-During H1 2024, Club Med revealed major renovations to strengthen its upscale positioning
- New Family Oasis in Club Med Marrakech, Morocco, with 66 new rooms, nestled in La Palmeraie and perfectly suited to families, which is settled around water games, a pool area, and a Baby Club Med.
- Club Med Djerba La Douce, in Tunisia, with a renovation to upgrade this legacy property to a Premium Resort.
-During H1 Club Med also announced a new important project
In May, Club Med and OMRAN Group – the Sultanate of Oman’s executive authority for tourism development – announced the project to build the 1st Club Med Resort in the Arabian Peninsula, under a management agreement. Settled in the Musandam Peninsula, it will be accessible by a 2-hour drive from the very connected Dubai International Airport.
The construction of the Resort is scheduled to begin in 2026.
-During the beginning of H2 2024, Club Med has opened new Resorts and renovations for premium holiday experiences
- Club Med Joyview Heilongtan in China (opened July 2024)
- Club Med Vittel Ermitage in France (opened July 2024)
- Club Med Gregolimano, in Greece with a New Zen Zone, new Suites, and a beach bar (opened July 2024).
-And will reveal at the end of H2 2024:
- Club Med Serre Chevalier in the French Alps (mid-December 2024)
Altogether, for the 2024-2026 period, Club Med should open 9 new Resorts, among which Club Med Borneo, Malaysia (2025) and the 1st Club Med beach and safari Resort, in South Africa, near Durban (2026).
Club Med plans as well more than 16 extensions/renovations of existing Resorts, while studying other opening opportunities, focusing on the Caribbean, Middle East, Southeast Asia and mountain destinations within France and around the world.
In H1 2024, Club Med has made major achievements in its Happy Digital strategy, confirming its pioneering role
-Ongoing and new initiatives in artificial intelligence
Club Med is now recognized as an industry leader in AI technology in France, attributed to its strategic and ethical approach, which aligns with the company’s core values and objectives. During H1 2024, Club Med launched a new conversational Bot on WhatsApp for customers in Brazil, developed with artificial intelligence, to answer questions regarding Resort information, prices, etc. This new BOT met with strong success for the Brazilian customers and will be deployed to other markets in H2 2024.
-A new booking engine for sales teams
Club Med worked on a new booking engine for its direct sales teams and indirect commercial partners, to improve technical performance and experience and thus allow a smoother reservation process. The deployment is finalized in all markets.
-Launch of a new website
During H1 2024, Club Med finalized the launch of its new website, with its new brand identity, to strengthen its global and international brand image. The user experience has also been improved for greater fluidity, and performance has been optimized. The website will be fully deployed in 30 markets by September 2024.
Outlook for H2 2024 and H1 2025
In a more uncertain geopolitical context and touristic market slowdown, demand for ski and beach all-inclusive and experiential holidays continues to expand.
Bookings for departures in H2 2024 (as of August 3rd, 2024), were up by 5,7% compared to H2 2023 at the same period, evolving differently in various geographical areas:
- +3,9% for Europe
- +7,9% for the Americas
- +11,5% for Asia
Bookings for departures in H1 2025 are significantly growing, benefiting from the positive momentum of early bookings, particularly for mountain destinations.