Club Med’s Evolution: A New Focus on Families and Ski Resorts

If you still think about beaches and singles when you think about Club Med, it’s time to think again. The global all-inclusive resort brand now has a portfolio that is one-third ski resorts with a customer base that is two-thirds families, with just one-third couples and singles. And the company is in a major growth mode for both beach and ski resorts, as it targets a more affluent market.

Henri Giscard d’Estaing, CEO, said Club Med is expanding its ski product in Europe and Asia with several resorts open or in development in China, Japan and South Korea. He said the company has 20 ski resorts in the Alps alone with plans to open one per year, adding that Club Med has enhanced its ski resort service to make it hassle free.

Club Med Rio Das Pedras – Las Reserve

Travel agents are important partners for the brand
When booking a vacation, said Giscard d’Estaing, the family’s travel agent will inform the resort of their sizes, weights and other information. When they arrive, they will find a private locker with skis and boots inside – as well as ski lift passes ready.

“We not only provide value for the money but offer the value of time so that people don’t have to waste a minute of their vacation on organization,” said Giscard d’Estaing.

Club Med gets about 40 percent of its bookings through travel agents, said Chris Greco, business development manager. The company has a dedicated trade website and offers a “generous” agent loyalty program, as well as discounts and FAMs.

Club Med continues to evolve
Club Med recently entered into a partnership with Ski.com, a provider of mountain vacation packages. Club Med resorts are now available via Ski.com with prices starting at $199 per night per person and including, but not limited to: lodging, lift tickets, lessons, dining, activities and child care.

Giscard d’Estaing said that U.S. business to Club Med’s Alpine resorts has doubled in the last three years because of the brand’s growth, the strong dollar and inexpensive flights to the Continent.

As for the changing market, he noted that just 15 years ago, Club Med’s clientele was one-third family, one-third couples and one-third singles – now totally transformed because of reinvented approaches to sports, food and entertainment. “It has been a remarkable evolution for Club Med,” he said.

The best resorts in prime destinations worldwide
Giscard d‘Estaing also commented that since Club Med was first in destinations like Bali, Phuket, Thailand and The Maldives, “we have the best locations in those places,” and added, “we are the only global all-inclusive brand. With more than a half century of experience, we know how to make the economics work in any destination.” (The first Club Med opened in Mallorca in 1950.)

Club Med now has a subsidiary brand called the Exclusive Collection, which includes entire resorts or hotels within resorts that are in the five-star category and others that are four-star properties.

Giscard d’Estaing said that since 2004 when he became CEO, the company has closed 65 resorts around the world because they were not in a physical condition to be upgraded and meet the brand’s current standards.

Ski trends driving the affluent market
Xavier Mufraggi, CEO, North America and Caribbean for Club Med said three trends are working in Club Med’s favor as it moves to cultivate a more affluent ski clientele. They are:

• Experiential vacations. Skiers are looking for something beyond skiing. They want an Alpine experience and skiing is just part of it. They are looking for local flavor as far as food, and local activities whether that be dogsledding or kayaking in an Arctic environment.
• Skiers have their own bucket lists of mountains to visit. As a result, Brazilians are skiing in the Alps and American skiers are going to Japan.
• Older millennials now have children and they do not want to go through all the hassles that might spoil a vacation. “A ski holiday is expensive and complicated,” said Mufraggi, “but we are able to make it simpler and with better value because of our experience.”

New property openings and renovations in the works
Club Med is in a major development mode to the tune of $1.5 investment in opening new properties and renovating many existing resorts. 

The company currently has 68 resorts worldwide, and Mufraggi said they will open seven in 2018, seven in 2019 and 10 in 2020. He added, “We are also refurbishing our rooms and upgrading our service with lots of training.” Giscard d’Estaing said Club Med is working with local organizations to make the food and other experiences more representative of the destination.

Among the recently opened resorts were: Club Med Lake Paradise in Sao Paulo; Club Med Sanya on the island of Hainan in China; and Club Med Beidahu in Jilin, China. Opening in the near future are: Club Med Grand Massif Samoens Morillon in the French Alps (December 2017); Club Med Cefalù in Sicily (summer 2018); and Club Med Lombok in Indonesia (2019).

Lake Paradise

Giscard d’Estaing said the company is also looking for more resorts in North America. “We will have more announcements soon,” added Mufraggi.

In addition, Club Med Turks & Caicos resort, seriously damaged by the recent hurricane, will reopen on Jan. 31, 2018.

Asked about the impact of climate change on the ski resorts, Giscard d’Estaing said, “We build on the highest mountains where the weather is dependable. Also, snow-making technology has gotten better, and we use that when it is necessary.”