Club Med 2023 Results: India's growing global travel presence

Club Med, the pioneer of the all-inclusive holiday concept, celebrates a year of resilience and significant achievements driven by robust growth and exceptional financial performance. The group’s 2023 results laid a solid foundation that reinforces its market leadership in Snow and Sun Holidays across the globe, including India, with the anticipation of a robust outlook for 2024.

Notably, 2023 also proved to be a pivotal year for Club Med's endeavors in India, showcasing a remarkable 37% surge in total business volume compared to 2022, underscoring the country’s significance in the brand’s global expansion strategy. Interestingly Club Med's ski and mountain business saw a remarkable 430% expansion compared to 2022, with the share of the Indian market increasing from 6% to 19% from 2019 to 2023. This increase can be attributed in part to the revenge travel phenomenon, as well as the success of Club Med’s ski and mountain business (+75% vs pre-pandemic).

Overall, in the East and South Asia, and Pacific (ESAP) region, Club Med soared to new heights, propelled by a surge in demand for its Premium All-Inclusive Resorts:

The ESAP region doubled its business volume of 102% year-over-year and 6% over 2019.
A significant upswing in the number of guests, with a remarkable 43% rise compared to 2022, and reaching pre-pandemic levels.
The momentum continues to soar with the successful launch of our fourth Mountain Resort in Japan, Club Med Kiroro Grand, in December 2023.

As a comprehensive global summary, the following are highlights of Club Med’s achievements in 2023:

Business Volume amounted to €1,981M, representing an increase of 17% compared to 2022, and 16% versus 2019.
Record Resort's 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 is up 50% to 9.5%, compared with 6.2% in 2019, thanks to a successful upmarket strategy and business model optimization.
100% Premium & Exclusive Collection: Club Med Resort portfolio will achieve full upscale transformation to Premium or Exclusive Collection by mid-2024.
Record performance of current first half 2024 bookings at +14% as of March 2024 compared to the same period of 2023, which was already at record level.

Reflecting on the results of 2023, Rachael Harding, CEO of Club Med ESAP Markets, shares “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 program. With a robust expansion plan, Club Med is well-positioned to cater to the travelers of today & tomorrow.”

Bruno Courbet, Country Director, Thailand and New Markets commented, “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. As we look forward to 2024, we anticipate even greater diversification opportunities. This includes not only expanding our ski resorts in Europe but also introducing new destinations such as Club Med Seychelles and Mauritius, which cater to family or couple beach enthusiasts. Additionally, we’re excited to offer fresh-air mountain resorts in Europe during the summer months, further enhancing the diversity of our offerings and reinforcing our commitment to delivering unparalleled holiday experiences.”