In 2022, Club Med saw its business volume (€1 699 million) increase by more than 100% compared to that of 2021, recovering to 99% of the volume in the same period of 2019. The operating profit amounted to €98 million and adjusted EBITDA* represented €309 million. Club Med's resort capacity increased by 62% compared with 2021 and recovered to 92% of the 2019 level.  The number of customers recovered to 88% of the 2019 level, resulting in more than 1,3 million customers, an increase of 64% compared to 2021. The global average room occupancy rate reached 67%, increasing by 5 percentage points compared to 2021 and only 4 points lower than 2019.  Bookings for departures in H2 23 are up 23% compared to H2 22. 

 

Commenting on the activity of 2022, Henri Giscard d'Estaing, President of Club Med, stated:  “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 remaining travel restrictions in Asia and Covid-19 resurgence in China have still impacted our business, but Club Med managed it globally. Our Business Volume doubled compared to last year and reached pre-pandemic levels.  Our operating profit is above 2019, and we achieved a positive net result, and were able to reduce the level of the financial debt, benefiting from the profound transformation of our business model. 2022 was an important milestone in our strategy to move upscale. Club Med has never had, since its creation in 1950, such an exceptional Resort portfolio! The premium share of total capacity continued to increase and reached 95%, and we managed to open seven magnificent Resorts. The outlook for the first half of 2023 is very encouraging, and our strategy should allow Club Med to sustain future profitable growth.” 

 

In 2022, Club Med returns to pre-pandemic levels of activity.  Its business sustained and accelerated its recovery in Europe, and the Americas, following the strong rebound in the second half of 2021, even though the business was impacted by the Omicron pandemic in these regions in January and February (depending on the countries). Due to the remaining travel restrictions in Asia Pacific countries and Covid-19 resurgence in China, Club Med's business in the Asia Pacific region was still heavily impacted in 2022. 

 

The Global ADR (average daily rate: average price per day) amounted to €208 up 15% compared with 2021 and up 20% compared with 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 95% of capacity (+10 points vs 2019) now in the high-end (Premium) and very high-end (Exclusive Collection) categories. 

 

Thanks to the strong performances of Europe and the Americas, and despite the impact of remaining travel restriction in Asia and Covid-19 resurgence in China, operating income was €98 million, returning to pre-pandemic level.  The adjusted EBITDA* amounted to €309 million in 2022 compared with € (13) million a year earlier and recovered to 96% of 2019. 

 

In the face of the sharp decline in profitability in Asia due to the health context, Europe and the Americas were able to significantly improve their EBITDA thanks to a change in their business model, particular on upgrading the portfolio of Resorts. 

 

The recovery was uneven by geographical areas. Activity in Europe showed a strong recovery rate.  Club Med's recovery in Europe increased by 116% compared to 2021 and returned to the level of 2019 (+4%), despite concerns stemming from the sensitive geopolitical and inflationary context. The capacity of resorts in EMEA climbed to 97% against 2021 and recovered to 86% of the levels in 2019. Club Med Resorts welcomed nearly 600,000 customers from Europe, 98% more than in 2021. 

 

The average daily rate in Europe was €222, growing by 12% over 2021, and by 22 % over 2019, due to the evolution of the capacity of Premium resorts in Europe and Africa, which represents a 20-point increase over 2019. Apart from the recovery of market demand, the newly opened Resorts in Europe in 2022: Club Med Magna Marbella in Spain, Club Med Tignes in the French Alpes, and the first Exclusive Collection Mountain Resort, Club Med Val d'Isère, also contributed their upscale capacity to the growth in European activity.  

 

In North America, Club Med  has seen a sustained rebound since the second quarter, while Brazil has become Club Med's fifth largest market. The Americas (North and South) recovered strongly, taking full advantage of the market demand in the USA and Canada, the upscale capacity of recently opened new Resorts (Club Med Québec Charlevoix, in Canada, and Club Med Michès Playa Esmeralda, in Dominican Republic), and a strong momentum in domestic travel in Brazil, along with the resumption of ski vacations in the Alps.    

The Americas' Business Volume increased by 89%, compared to 2021 and increased by 33% compared to 2019. During 2022, Brazil became the 5th sales market in terms of Business Volume. Asia has been still heavily impacted by Covid-19 pandemic, despite initial signs of recovery in the second half. 

 

In Asia, although the Business Volume in 2022 still had a gap of 48% with that in 2019, Club Med saw in the second half of 2022, the gap (22%) was quickly narrowing down compared to the 1st half of 2022 (73%). The Business Volume in 2022 had an increase of 110% compared with 2021. 

 

In 2022, Club Med continues to strengthen its upscale positioning with the opening of 7 new premium & Exclusive Collection Resorts in 2022. 

 

Club Med adhered to its upscale strategy in developing its Resort's portfolio. In 2022, Club Med opened 7 new premium Resorts: Changbaishan, a mountain resort in northeast China, Magna Marbella, nestled in one of Spain's top destinations, Thousand Islands Lake (Club Med Joyview) in eastern China, which opened in June despite the lockdown, Yanqing Lijing (Club Med Joyview-phase 2) in Beijing, Tignes, Club Med's new flagship 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 10 extensions/renovations of existing Resorts, while studying other opening opportunities – an encouraging outlook for the first half 2023. The trends for H1 2023, driven by continued growth in demand for Club Med in the Americas and Europe and the "travel revenge" phenomenon in Asia, reflect a new phase of growth.  

 

For January and February 2023, business volume reached the highest monthly level in recent years, with a room occupancy rate of 77%. Bookings for departures in H1 23 (to 11 March 2023), are up 36% compared to H1 22, evolving differently in various geographical areas: a 19% increase for Europe, 39% for the Americas and 232% for Asia – due to the "revenge travel" phenomenon following the reopening of several destinations and markets in Southeast Asia and the lift of health restrictions in China. 

 

The number of customers has also increased by 29%, compared to the same period of last year. Bookings for departures in H2 23 (to 11 March 2023) also recorded a 23% increase compared to H2 of 2022. 

 

Club Med's recovery demonstrates the relevance and success of its strategy, now based on five pillars: 

• Premium with Club Med spirit: The current rebound in travel shows that the high-end sector is the first to recover and is more resilient when facing the effects of economic cycles. 
• Become the Hospitality employer of choice: As the tourism industry is facing difficulties in recruiting and attracting talent, Club Med's ambition is to offer its teams a "life-changing experience" through personalized management, training and fast-track career paths. 
• Glocal: Combining a global approach with a local focus in terms of markets, products, and destinations to achieve sustainable growth and to diversify regional operational risks. The Covid-19 pandemic and travel restrictions have led to an increase in domestic tourism.  
• "Happy Digital”: Continuing the digital transformation to improve the customer and employee experience in the resorts and offices, by investing again in digital and technology at the same level as before the pandemic, to support the rebound.  
• “Happy to Care”: Aiming to take care of the environment and communities, with the implementation of numerous measures in favour of responsible tourism: BREEAM eco-certification for the construction of Resorts and obtaining Green Globe certification for the daily management of Club Med Resorts. 

These 5 strategic pillars help accelerate the recovery of Club Med, the world leader in all-inclusive and experiential premium holiday for families and active couples. 

 

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

 

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