UK business volume grew by 17% year-on-year to €93 million (£80 million) in 2023, and is now up by 30% compared with pre-pandemic levels. The global resort operator said the UK’s performance had been "one of its strongest in Europe".
"The UK market has become a key contributor to the company, being the second biggest market in terms of business volume in the Alps [second only to France]," said Club Med in a full-year trading update issued on Friday (15 March).
It said it would continue to pursue a "strong growth strategy" in the UK by "increasing its snow leadership" while expanding its sun market towards key destinations in southern Europe, such as Spain and Turkey, and towards worldwide destinations like the Indian Ocean, Caribbean and southeast Asia.
Globally, Club Med business volume grew to just shy of €2 billion in 2023, up 17% year-on-year and up 16% when compared with 2019, albeit achieved on a 2.3% reduction in resort capacity compared with 2019.
Operating income grew to a record €174 million, up by nearly two-thirds (64%) year-on-year, on an increased operating margin of 9.5% versus 6.2% in 2019. Club Med’s net profit result for the year was €99 million.
In addition, first-half bookings at group level are currently running at record levels, up 14% year-on-year as of 3 March, although Europe (+7%) is lagging behind Club Med’s Americas region (+11%) and Asia (+51%).
Club Med said Asia’s performance was being driven by "the reopening of several destinations and markets in southeast Asia", and "the gradual recovery of the tourism sector in China".
Henri Giscard d’Estaing, Club Med president and chief executive, said: "After returning to its pre-pandemic level as early as in 2022, Club Med reached nearly €2 billion in business volume for the first time in its history.
"The increase of 50% of its operating margin, close to 10%, and its record net profit demonstrates the success of Club Med’s new business model, whose transformation started in 2004."
D’Estaing added Club Med would this year finalise its efforts to "move upmarket" its resort portfolio. Resort capacity increased by 6% year-on-year, with 97% of its resorts now at premium or exclusive collection standard.
