Club Med posts record-setting results; 15 new resorts coming in 3 years

Club Med posts record-setting results; 15 new resorts coming in 3 years

MONTREAL — Club Med saw its best net results in 15 years in 2016, and a record-setting 20% year-on-year increase in operating income in North America.

The resort company is on a growth trajectory, with plans to expand its global portfolio with 15 new resorts in the next three years. Club Med has also poured millions of dollars into updates to existing properties.

“As we see with the newer lifestyle hotel brands and the success of peer-to-peer accommodation, those who will cut through the clutter are those who will offer an experience that goes way beyond a good bed and good service,” says Xavier Mufraggi, CEO of Club Med North America. “Club Med’s reputation as an activity trendsetter, our focus on extraordinary local experiences, outstanding kids’ programs and constant renovations and upgrades, will allow us to remain on top of the game. Active couples and multi-generational families are our focus, as well as corporate or affinity groups looking for a tailor-made getaway full of activities paired with some of the best cuisine out there.”

New Club Med resorts are coming in France, Italy, China and Indonesia.
Club Med has 68 properties in 26 countries worldwide and the diversification helped the company through a tough year in the Caribbean. The number of American and Canadian guests travelling to one of Club Med’s 20 all-inclusive ski resorts in the European Alps has nearly doubled in two years, says Mufraggi. “We are confident that we offer the best available way to ski the Alps thanks to the ease and comprehensiveness of our all-inclusive ski packages.”

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Club Med’s ad campaign for the ski market promotes the all-inclusive ski model in the French and Italian Alps over the North American ski industry, where the model has yet to be offered.

Meanwhile health and wellness trends continue to rise and resorts providing health and wellness offerings saw a significant rise in visitors, as did resorts offering enhanced family amenities. Club Med Punta Cana brought in Zen Oasis with stylish spa-inspired Deluxe rooms, as well Club Med Creactive by Cirque du Soleil. These enhancements resulted in a 25% increase in revenue for Club Med Punta Cana in 2016, with only 11% additional capacity.

Club Med’s ‘Best Offer Guarantee’ for early booking rates has also contributed to a strengthened early booking pattern, particularly for the winter holidays. At Club Med, early booking represents up to Cdn$1,400 savings+ per couple per week. With this guarantee once again in place for winter 2017-2018, Club Med expects an influx of bookings as early as January for the 2017 holiday season, with the most sought-after room categories selling out by March.

Also, for the first time in 10 years, Christmas 2017 will fall on a Monday, resulting in “amazingly affordable” prices for the week of Dec. 17, says Mufraggi. “Don’t miss out on those deals. We reward early birds in our pricing strategy; not only do they save substantially but they also secure the best rooms. Our resorts do not have massive capacity; this intimate atmosphere is highly sought-after by our guests. The flip side of that is that they sell out fast.”

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Club Med is preparing for projected record-breaking sales in January/February, and says the success of its Black Friday 2016 sale was a “significant indicator” of demand. Club Med’s Black Friday sale brought in 21% more bookings than 2015 and set a new sales record for the company.

In an effort to cater to increasing demand and offer enhanced customer service the brand recently hired new contact centre agents for both Canada and the U.S. markets to handle the projected 30% call increase over last year.

One new property scheduled to open in December 2017, Club Med Samoëns in France, is a family-friendly ski resort in the heart of the French Alps, with 360-degree views of the surrounding mountains. Geneva Airport is about an hour away. Club Med Samoëns will be the new Club Med flagship all-inclusive ski resort in France, with 420 guest rooms and a dual ski experience, thanks to two different ski domains: Le Grand Massif (ideal for beginners) and high-altitude Flaine (for advanced alpine skiing).