Singapore, 12 October 2023 – Commenting on the activity of the first half of 2023, Henri Giscard d'Estaing, President of Club Med, stated, “Following a strong recovery since the second semester of 2022, we have achieved record high figures for the first half of 2023, despite the macroeconomic and inflationary context. Our Business Volume increased by 32%, and our operating income reached a record high level. These results are mainly driven by the remarkable performance of our Club Med Mountain Resorts this winter, thanks to the opening of 3 new Premium Resorts at the end of 2022 and the continued internationalization of our customer's base. The outlook for the second half of 2023 is showing a strong momentum in “travel revenge” in Asia. Our successful strategy and profitable business model should enable Club Med to drive future profitable growth."

In the 1 Half of 2023, Club Med records a high level of activities and profit. Club Med's business sustained and accelerated its recovery around all business units, thanks to the rapid growth of mountain vacation.

The Global ADR (average daily rate: average price per day) amounted to €234, representing an increase of about 11% and 32% as compared with the same period of 2022 and 2019.

This increase is mainly due to the implementation of upscaling and massive investments in recent years, which have upgraded the portfolio of Club Med Resorts, with 97% of capacity (+11 points vs 2019) now in the high-end (Premium) and very high-end (Exclusive Collection) categories. For instance, Club Med Exclusive Resorts Collection portfolio, one of the strategic product ranges of Club Med, has seen its Business Volume increase by 35% and its number of customers by 22% compared to the same period of 2022. This increase is mainly driven by the successful first winter season of Club Med Val d'Isère, the first Club Med Exclusive Collection Resort in the Alps and the recent renovation of Club Med legendary Club Med 2 sailing yacht.

Despite the impact of the economic slowdown, operating income reached a record high level, amounted to €159 million, increased by 180% compared to 2022, and increased by more than 100% compared to the same period of 2019. In Europe and the Americas, it increased significantly as compared to the same period of 2022. It exceeded that of the same period of 2019, whereas Asia Pacific was still below the pre-pandemic level.

Business Volume and Operating income are significantly driven by a strong performance of Club Med Mountain winter season. This winter, Club Med has seen the Business Volume of its Mountain Resorts increase by more than 45% compared to that of the same period of 2022. Its number of customers increased by 30%, and its ADR was up by 10% compared to the same period of 2022. This increase is mainly due to the massive investments in recent years to upgrade the mountain's Resorts portfolio, the opening of new Resorts in the Alps, in Canada and in Japan, and to the continued internationalization of customers.

Adjusted EBITDA* amounted to €265 million in the 1H 2023 compared with €164 million a year earlier.

Business activity by geographical areas

• Business activity in Europe continued to grow.

 The business volume of Europe stood at €621 million and increased by 14.3% and 12.7% compared to the same period of 2022 and 2019, respectively, despite concerns stemming from the sensitive geopolitical and inflationary context. The capacity of resorts in EMEA increased by 12,5% compared to the same period of 2022 and recovered to 91.4% of the levels in 2019.

The number of customers amounted to over 314,000, 8% more than in the same period of 2022.

The average daily rate in Europe was €253, growing by more than 9% over the first half of 2022 and by more than 32% over 2019 due to the evolution of the capacity of Premium Resorts in Europe and Africa, which represents a massive 20-point increase over 2019.

Apart from the recovery of market demand, the newly opened winter Resorts in the Alps in December 2022: Club Med Tignes, and the first Exclusive Collection Mountain Resort, Club Med Val d'Isère, also contributed their upscale capacity to the significant growth in European business activity.  

• After a strong recovery in 2022, the Americas continued to show a business performance.

During the first half of 2023, The Americas region had strong growth. The Business Volume increased by 35%, as compared to the first half of 2022, and increased by 65% compared to the same period of 2019.

The number of customers amounted to 207,000, increasing by 4% compared to the first half of 2022.

The North America region benefitted from the Canada rebound, as pandemic travel restrictions were maintained until February 2022, and achieved +25% of Business Volume as compared to the first half of 2022 despite the closure of Club Med Sandpiper in 2022 and the slowdown of the US economy.

In South America, Club Med seized the opportunities of the strong recovery of the Brazilian domestic market, and the solid momentum of ski vacations in the Alps. During the first half of 2023, Brazil became the third market of Club Med in terms of Business Volume, increased by 54%, and 110% compared to the same period of 2022 and 2019 respectively.

• After a heavy impact by Covid-19 pandemic, Asia has seen a recovery, taking advantage of the easing of travel restrictions.

In Asia, Club Med saw in the first half of 2023, the Business Volume increased by 247% compared to the first half of 2022 and recovered to 92.7% of the same period in 2019.

The number of customers is up by over 125% and exceeding the pre-pandemic level by almost 10%.

This increase is due to several reasons: the “Revenge Travel” phenomenon in Asia-Pacific, a momentum in domestic travel in China, and the success of the new Club Med Kiroro Peak, the third mountain Resort in Hokkaido, Japan.

In the second half of 2023, Club Med continues to strengthen its upscale positioning with the opening of 4 new Premium & Exclusive Collection Resorts. 

Club Med adhered to its upscale strategy, reinforcing its position as a world leader in Premium vacations by developing its Resort's portfolio.

In the second half of 2023, Club Med will reveal 4 new destinations for the premium holiday's experiences:

• La Rosière, Exclusive Collection Space in the French Alps, with its 43 luxury Suites-Apartments.
• Club Med Kiroro Grand, nestled in Kiroro domain, in Hokkaido, Japan.

And in China, two city hotels, under a new product line Urban Oasis by Club Med

• Urban Oasis Nanjing by Club Med
• Urban Oasis Taicang by Club Med

Altogether, for the 2023-2025 period, Club Med will open 17 new Resorts, as well as more than 10 extensions/renovations of existing Resorts, while studying other opening opportunities, with a focus on Middle East and Southeast Asia.

Outlook for the second half 2023 

The trends for the second half of 2023, driven by a continued demand for Club Med in the Americas and Europe and the "travel revenge" phenomenon in Asia-Pacific, are positive.

Bookings for departures in H2 23 (to 6th of August 2023), are up 6% compared to H2 22 and 21% compared to H2 19, evolving differently in various geographical areas:

• +1% for Europe
• +4% for the Americas
• +35% for Asia

 Club Med is also recording a strong demand for the upcoming winter season and spring 2024.

Please click here to access Club Med's Press Room.

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