The luxury all-inclusive travel brand, Club Med revealed their financial results for 2022, with the brand increasing its business volume by 100% (€1.7 billion) compared to 2021. The operating profit for this same time period also equated to €98 million as the brand rebounded its financials to pre-pandemic levels.
Other notable financial results include the adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) which represented €309 million, and net financial debts now stand at €308 million compared to €490 million euros at the end of 2021.
The impressive results stem from a mass return to global travel, with resort capacity increasing by 62% last year compared to 2021 – overall recovering to 92% of the 2019 level. While 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 start of 2023 has also witnessed continued growth, with the business volume for January and February reaching their respective highest monthly levels compared to recent years. This is further backed up by departures scheduled for the first half of 2023 being up by 36% compared to the same period last year. For the second half of the year, bookings are also up by 23% compared to the same six months in 2022.
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 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 returned to pre-pandemic levels of activity
Club Med’s 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 now in the high-end (Premium) and very high-end (Exclusive Collection) categories.
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, based in particular on upgrading the portfolio of resorts.
The recovery was uneven by geographical areas
Europe increased by 116% compared to the last year 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.
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 Alps, and the first Exclusive Collection mountain resort, Club Med Val d’Isère, also contributed their upscale capacity to the growth in European activity.
North America 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 first half of 2022 (73%). On the other side, the business volume in 2022 had an increase of 110% compared with 2021.
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