Chinese cash revives Club Med

June 28, 2017 by  
Filed under EUROPE, News, North Asia

NICE, FRANCE, 28 June 2017: Club Med has embarked on global expansion with eight resorts having opened during the last two year and at least 20 more planned for China according to Club Med president Henri Giscard d’Estaing.

He made the comments on the sidelines of celebrations to mark the opening of Club Med’s Opio Resort in Nice, last week.

In the past 10 years, the Club Med president admitted the company had opened “very few resorts.”

This year it will open Grand Massif Samoens-Morillon in the French Alps and Tomamu in Japan.

“We will also expand in the Chinese market at a faster pace as Chinese consumers have changed greatly in their demands for tourism and family holidays will increasingly become a major trend,” he noted.

This October and November, two resorts in Anji and Changli will start trial operation under Joy View, a new holiday brand tailored to meet the needs of the Chinese market.

Such resorts, closer to big cities, will still adopt some of the traditional elements of Club Med, while focusing on travellers who prefer on short breaks. Club Med plans to open 20 resorts in China by 2020.

Club Med, one of core portfolio companies of Fosun Tourism Group, reported an operating profit of EUR44.1 million in 2016, up 36% on a year-on-year basis.

Fosun Group chairm, Guo Guangchang, said: “Fosun will offer more of China’s growth momentum to Club Med, and of course will support the revival of this brand in Europe and beyond.”

Club Med is an important member of what Fosun calls its happiness ecosystem. It identifies three major core business segments in the group – health, happiness and wealth.

Thomas Cook, an established British travel agency is another “happiness” member as is Atlantis Sanya, which aims to become the world’s top comprehensive tourist destination and will begin operations at the end of the year.

Another member of the “happiness” segment is Ixigo India’s largest online travel platform.

Fosun Group global partner senior vice president and Fosun Tourism Group chairman & president Qian Jiannong said: “Tourism has become one of the fastest developing sectors of China’s economy. With 2017 as the first year for Fosun Tourism Group, we hope to leverage the existing brands in the global leisure resort area … Fosun will continue to support Club Med as it grows into one of the top holiday brands in the world.”

Meanwhile, Club Med has seen a sharp increase in the number of customers compared to the previous years, reaching the highest level of performance over the past decade.

Bookings for summer 2017 are up by 5.3% compared to the same period in 2016 and all geographic regions have reported higher business volumes and an increase in customers.

Club Med booking trends have changed with the arrival of digital technology and mobile devices. Today, 56% of Club Med customers used their smartphones or tablets to book.

About Fosun Group

Fosun was founded in 1992 in Shanghai. Fosun International (00656.HK) was listed on the main board of the Hong Kong Stock Exchange 16 July 2007. As at 31 December, 2016, Fosun’s total assets exceeded RMB480 billion and is principally engaged in three business segments of health, happiness and wealth.

SOURCE: PRNewswire, Fosun International Limited

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