Club Med Malaysia consolidates its growth against pre-pandemic period with an optimistic outlook for 2024

March 21, 2024

Club Med Malaysia consolidates its growth against pre-pandemic period with an optimistic outlook for 2024

Club Med, the pioneer of premium all-inclusive holidays, is celebrating a year of resilience and significant achievements, with 2023 marked by strong growth and financial performance not only for the Malaysian market, but also within Asia and its global counterparts.

Club Med Malaysia’s business has shown its resilience with results consistently superior to pre- pandemic period:

The market boasts a remarkable business rebound, surpassing 2019 performance by 40% alongside a 41% client growth.
Phenomenal success for Japan mountains with a year-on-year growth in business volume of 231%, due to rising popularity of snow holidays within Malaysia and a strong “revenge travel” trend, particularly among families seeking unforgettable winter adventures.
Southeast Asia beach resorts grew by +45% in business volume against 2019, showing a healthy recovery.
Domestic travel has doubled against 2019 with an 86% growth, supported by a dynamic domestic demand.
In the meantime, demand for other Southeast Asian destinations increased, particularly in Indonesia & Thailand where we observed twice the number of clients visiting our resorts.

Within the East and South Asia, and Pacific (ESAP) region, Club Med achieved new heights with strong demand for its Premium All-Inclusive Resorts:

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The ESAP region doubled its business volume of 102% year-over-year and 6% over 2019.
A significant upswing in the number of guests, with a remarkable 43% rise compared to 2022, and reaching pre-pandemic levels.
- This increase was partly due to the revenge travel phenomenon, a strong momentum on domestic travel in Japan & Malaysia, and the success of our mountain business (+44% vs pre-pandemic) supported by the opening of Club Med Kiroro Peak in December 2022, a new mountain Resort in Hokkaido, Japan.
- This momentum continues with very strong trends for our fourth Mountain Resort in Japan, Club Med Kiroro Grand, which opened in December 2023 and for Kiroro Peak which ascends to Exclusive Collection status with new elevated experience and premium offerings for luxury ski adventures in the upcoming winter season.

The group’s 2023 results reinforce its market leadership in snow and sun holidays across the globe with the anticipation of a robust outlook for 2024. Highlights of Club Med’s global achievements in 2023 includes:

Business volume amounted to €1,981M, representing an increase of 17% compared to 2022, and 16% versus 2019.
Record resort operating income amounted to €174M, an increase of 64% compared to 2022, and 70% compared to 2019.
Resort capacity increased by 6% compared to 2022 with 97% upscale or very upscale capacity (+10pts vs 2019).
Club Med welcomed over 1.5 million guests in 2023, a 16% year-over-year increase. This growth was driven primarily by a rebound in travel from Asia following pandemic restrictions.
The average room occupancy rate reached 70%, reflecting a 3.4 points rise from 2022.
Operating margin is up 50% to 9.5%, compared with 6.2% in 2019, thanks to a successful upmarket strategy and business model optimization.
100% Premium & Exclusive Collection: Club Med Resort portfolio will achieve full upscale transformation to Premium or Exclusive Collection by mid-2024.
Record performance of current first half 2024 bookings at +14% as of 2 March 2024 compared to the same period of 2023, which was already at record level.

Reflecting on the results of 2023, Rachael Harding, CEO of Club Med ESAP Markets, said: “Club Med’s exceptional results are a testament to our market leadership in premium, all-inclusive holidays, especially in our mountain resorts. Embracing our refreshed brand identity and campaign, ‘That’s l’Esprit Libre‘, we will continue to create experiences that allow our guests to disconnect from the worries and mental burden of everyday life to fully embrace the present. This will be achieved through doubling down on the essence of holidays with Club Med where well-designed spaces, curated sports and activities, signature festive ambience and our international team of G.Os are synonymous with our premium all-inclusive program. With a robust expansion plan, Club Med is well-positioned to cater to the travellers of today & tomorrow.”

Olivier Monceau, General Manager, Club Med Singapore and Malaysia adds:

“Looking back on our outstanding achievements in 2023, we’re delighted to observe how our dedication to delivering extraordinary experiences have resonated with Malaysian travellers, especially within the family and active individuals segment. In line with our global upscale strategy, we solidified our position as the leading snow holiday leader in Hokkaido, with 4 resorts, offering a seamless, hassle-free winter experience to the Malaysian travellers with our signature premium all-inclusive offering. This tremendous snow success we had in 2023 validates our strategy and reveals a very encouraging potential for our snow holiday business. This performance also reflects the resilience and potential of the Malaysian tourism market. Looking forward, record-breaking bookings for the first half of 2024 indicate we’re on track for continued success and we are dedicated to crafting memorable moments for our valued guests”

Based on encouraging performance indicators, Club Med gleaned insights on dominant travel trends and guest preferences that will guide business strategies in the months ahead. Some of the travel trends identified in the 2023 results includes:

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Reinforced Leadership in Premium, All-inclusive Holidays

In a rapidly evolving travel landscape, Club Med reaffirmed the enduring appeal of its premium all-inclusive holidays in 2023. Despite the macroeconomic uncertainties, geopolitical unrest and the rising cost of living, travel demand continues to soar. As discerning travellers increasingly seek hassle-free, comprehensive holiday experiences, Club Med’s offerings will continue to provide unparalleled value and world-class hospitality.

Following the success of Club Med Tignes and Club Med Val d’Isère in the French Alps, Club Med is prioritising the expansion of its Exclusive Collection portfolio by adding more properties and enhancing Exclusive Collection spaces within its Four-Trident (Four-star) Resorts. The brand’s unwavering dedication to elevate its premium experiences has solidified its position as a relevant, global leader in the all-inclusive segment, reaffirming the allure of carefree and all-encompassing holidays that fulfils the holiday dreams of today’s travellers.

Commitment towards Sustainability and Eco-tourism

Club Med’s commitment to sustainability continues to take centre stage through its Happy to Care programme, from minimising the environmental impact of its operations to empowering local communities. The brand aims to further reduce its carbon footprint, by enhancing waste management practices, such as the elimination of single-use plastic and combatting food waste, and championing eco-friendly initiatives across its Resorts to ensure that each guest can revel in an unforgettable holiday while contributing to the preservation of the planet.

Additionally, Club Med commits to eco-certify the construction of all its new Resorts with BREEAM or their local equivalent as part of its continued efforts dedicated to responsible tourism, as well as to obtain Green Globe certification, ensuring both new and existing Resorts are sustainably operated.

3. Appeal of Snow Holidays

In a recent snow holiday study commissioned by Club Med, 3,500 respondents unanimously attested that snow holidays are growing in popularity, driven by the thrill of winter sports and the charm of snow-covered landscapes. The desire to escape daily tropical monotony motivates 45% of respondents to embark on these snowy getaways. Exploring new cultures and cuisines at the destination also adds to the appeal, with excursions to local sights, tasting local delicacies, and convenient ski gear rentals being among the top desired additional services for snow holiday enthusiasts. Notably, over 80% of respondents concur that all-inclusive snow holidays offer not only convenience but also a chance to indulge in a variety of activities, all while providing excellent value for money.

These findings aligned with and were reflected in Club Med’s strong business volume recorded in 2023 and is expected to grow in 2024.

4. Embracing Summer Mountains

The survey findings also indicated that one in two are aware of the summer mountain holiday concept and as many as 80% are interested in going on one in the next two years. Catering to the evolving preferences of travellers seeking immersive, nature-centric experiences, Club Med’s summer mountain Resorts are set to captivate adventure enthusiasts and nature lovers alike. Offering a diverse array of exhilarating outdoor activities, premium accommodations, and awe-inspiring natural landscapes, Club Med establishes itself as a preeminent authority in curating unforgettable summer mountain getaways, providing an ideal blend of adventure and relaxation for travellers seeking memorable, nature-infused vacations.

Gearing Up for Growth

Looking forward to 2024 and beyond, Club Med continues its ambition to be the most desirable holiday lifestyle brand and is poised for dynamic growth and expansion with plans to introduce several new resorts in key destinations worldwide.

In a transformative journey last August 2023, Club Med together with Paradise Indonesia, inked a landmark Memorandum of Understanding (MoU) to craft an exceptional portfolio of upscale all-inclusive resorts throughout Indonesia. Aligned in their vision of curating coveted lifestyle holidays tailored to the discerning tastes of today’s travellers, the two esteemed hospitality entities aim to unveil unparalleled experiences in some of the globe’s most exquisite locales. Spanning multiple phases, the ambitious development initiative targets the creation of over five new resorts. The inaugural phase, set to unfold within the next five years, will witness the debut of three luxurious havens in key tourism hotspots: North Sulawesi, Bali, and West Java

With further details of new resort openings to be released very soon, some of our upcoming new openings and renovation highlights includes:

New Eco-Chic Resort: Club Med Borneo, Malaysia (2025)

Nestled between the woods and the waves in the enchanting landscape of Kota Kinabalu, Club Med Borneo, opening in 2025, will offer a pristine paradise where jungle meets idyllic white sand beaches and crystal-clear waters. Embracing Club Med’s commitment to eco-friendliness, the Resort’s design blends harmoniously with its lush surroundings, drawing inspiration from the woods and sea. Every element has been thoughtfully crafted to ensure minimal ecological impact while providing utmost comfort and luxury throughout the Four-Trident property and Exclusive Collection space. Club Med Borneo will be both BREEAM and Green Globe certified, furthering the brand’s commitment to low density, sustainable development.

New Beach & Safari Resort: Club Med South Africa Beach & Safari (2026)

Scheduled to open in 2026, Club Med South Africa Beach & Safari is set to redefine South Africa’s hospitality landscape as the brand’s first-ever location in the country. Located in KwaZulu-Natal, known for its natural beauty and pleasant weather, the Resort will offer a unique blend of beach and safari experiences, allowing guests to enjoy a surf-lifestyle concept and an opportunity to stay in a Big Five Game Reserve for an unforgettable safari adventure. Nestled on the “Dolphin Coast,” the beach Resort will provide breathtaking views of the coastline, while the interiors, entertainment, and gastronomy will showcase the rich influences of the African continent. The Four-Trident Resort will feature an Exclusive Collection space, along with a spa, fitness centre, yoga school, and an adults-only Zen pool and bar, in addition to various land and water sports, including Club Med’s inaugural Surf School. Committed to environmental sustainability, Club Med South Africa Beach & Safari will implement eco-friendly practices such as the Bye Bye Plastic Program and Green Globe sustainable tourism certification, exemplifying its dedication to corporate social responsibility.

Club Med Phuket, Thailand (2024)

Having recently completed the first phase of its room renovations, guests visiting Club Med Phuket can look forward to the completely redesigned Superior and Deluxe rooms, inspired by the natural beauty of Phuket and feature sustainable, locally crafted furnishings.

In 2024, Club Med Phuket will undergo the second phase which includes:

Family Oasis: As the first-ever Family Oasis in ESAP, this newly extended family zone will feature 32 Family Rooms and a family water play area, specially designed to offer a space for families to relax, have fun and create lasting memories together.
Enhanced Rooms: Part of the brand’s ongoing commitment to providing guests with the best possible experience, the Resort will continue its room refreshment that is scheduled to be completed by end 2024.

For more information on Club Med, visit www.clubmed.com.my