In 2022, Club Med, the world leader in all-inclusive and experiential premium holidays, has achieved remarkable results, with its business volume surpassing €1.6 billion, marking an increase of over 100% compared to the previous year. The operating profit amounted to €98 million, returning to pre-pandemic levels, and the adjusted EBITDA reached €309 million. Club Med’s resort capacity increased by 62% compared to 2021, and the number of customers recovered to 88% of the 2019 level, reaching more than 1.3 million customers, an increase of 64% compared to 2021. The global average room occupancy rate reached 67%, increasing by five percentage points compared to 2021 and only 4 points lower than in 2019.
The recovery was uneven by geographical areas, with Asia Pacific still heavily impacted by Covid-19. Meanwhile, Europe and the Americas have seen a sustained rebound since the second quarter of 2021, taking full advantage of the market demand and the upscale capacity of recently opened new resorts. Henri Giscard d’Estaing, President of Club Med, commented, “Following the rebound in the second half of 2021, our 2022 results show a strong recovery and acceleration for Club Med in Europe and the Americas.”
The strong performances in Europe and the Americas have significantly improved Club Med’s EBITDA, thanks to a change in their business model, notably upgrading the portfolio of resorts. Club Med strengthened its upscale positioning by opening seven new premium and Exclusive Collection resorts in 2022.
Despite the pandemic’s impact, Club Med has never had such an exceptional resort portfolio since its creation in 1950. The premium share of total capacity continued to increase. It reached 95%, and Club Med opened seven magnificent resorts, including Changbaishan in northeast China, Magna Marbella in Spain, Thousand Islands Lake (Club Med Joyview) in eastern China, Yanqing Lijing (Club Med Joyview-phase 2) in Beijing, Tignes in the French Alpes, Val d’Isère, the first Exclusive Collection Mountain resort, and Kiroro Peak, the third mountain resort in Hokkaido, Japan.
Over the 2023-2025 period, Club Med will open 17 new resorts, as well as more than ten extensions/renovations of existing resorts, while studying other opening opportunities, a positive outlook for the first half of 2023.
Club Med’s recovery demonstrates the relevance and success of its strategy based on five pillars: Premium with Club Med spirit, become the Hospitality employer of choice, glocal, “Happy Digital,” and “Happy to Care.” These five strategic pillars aim to accelerate the recovery of Club Med and make it more resilient to economic cycles.
In conclusion, Club Med’s record-breaking annual results in 2022 show the world leader in all-inclusive and experiential premium holidays has successfully navigated the pandemic’s challenges and is poised for future profitable growth. With new resorts opening and implementing sustainable tourism measures, Club Med continues to strengthen its upscale positioning, offering its customers a unique and unforgettable holiday experience.
Written by: Jason Smith
