Club Med, the pioneer of premium all-inclusive holidays, is commemorating a year of incredible endurance and accomplishment as it looks back on 2023 and forecasts a bright future for 2024. The group's accomplishments in 2023 demonstrate its dominant position in the global market for snow and sun holidays, establishing the framework for a strong outlook in the following year.
Key features of Club Med's global performance in 2023 include a huge increase in business volume, which reached €1,981 million, representing a 17% increase over 2022 and a remarkable 16% increase over 2019. This development trend is bolstered by record-breaking resort operating income, which soared to €174 million, a 64% increase from 2022 and a staggering 70% increase over 2019.
Club Med's unwavering dedication to quality is reflected in the 6% increase in resort capacity over the previous year, with an astonishing 97% upmarket or very upscale capacity. The group welcomed almost 1.5 million passengers in 2023, a significant 16% rise year on year, driven mostly by a return in tourism from Asia following pandemic-related limitations. Notably, the average room occupancy rate rose to 70%, up 3.4 points from 2022, while the operating profit increased by 50% to 9.5%, up from 6.2% in 2019, demonstrating the success of Club Med's upmarket strategy and business model optimisation.
Club Med accomplished outstanding milestones in the East and South Asia and Pacific (ESAP) area, including a doubling of business volume by 102% year on year and 6% over 2019. This exponential development was powered by a revival in travel demand, as seen by a significant 43% increase in the number of guests compared to 2022, returning to pre-pandemic levels.
The surge in demand was attributed to a variety of factors, including the phenomenon of revenge travel, strong domestic travel in Japan and Malaysia, and the stellar performance of mountain resorts, which saw a staggering 44% increase compared to pre-pandemic levels, bolstered by the launch of Club Med Kiroro Peak in December 2022. The momentum continues with the launch of Club Med Kiroro Grand in December 2023, indicating a bright future for luxury ski trips.
Club Med Singapore saw an excellent development trajectory, with a 72% rise in overall business volume compared to 2022, owing mostly to the success of mountain resorts. The region's client base increased by 50% over the previous year, reaching over 51,000 in 2023. Notably, Japan emerged as a major attraction, with a 260% increase in business volume and a startling 312% increase in clientele over 2022.
Reflecting on 2023's remarkable performance, Rachael Harding, CEO of Club Med ESAP Markets, emphasised the brand's dedication to provide exceptional premium all-inclusive experiences, particularly in mountain destinations. Olivier Monceau, General Manager of Club Med Singapore and Malaysia, highlighted his enthusiasm for the remarkable results in 2023, underscoring Singapore's growth as a top source market for Japanese mountain resorts.
In light of the optimistic performance metrics, Club Med recognised prevalent travel trends and guest preferences that will influence the company's future initiatives. These trends include a renewed focus on luxury all-inclusive vacations, a dedication to sustainability and eco-tourism, the growing popularity of snow vacations, and the rise of summer mountain trips as a desirable experience.
Looking ahead to 2024 and beyond, Club Med continues committed to dynamic growth and expansion, with plans to open several new properties in major areas throughout the world. The relationship with Paradise Indonesia represents a strategic shift towards creating upmarket all-inclusive resorts with the goal of delivering exceptional experiences in Indonesia's stunning locations. The brand's commitment to sustainability will be obvious in the eco-certification of all new properties and its ongoing efforts to promote responsible tourism.
As Club Med continues to innovate and cater to travellers' changing needs, the future looks promising for the company's legacy as a global leader in premium all-inclusive holidays, offering unparalleled experiences that appeal to discerning travellers looking for memorable and hassle-free vacations.
a. 111 Somerset Rd, #14-31 TripleOne Somerset, Singapore 238164 | Club Med Services Singapore
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