The deal the French tour operator has signed with Fosun, China’s largest privately-owned conglomerate, is a sign of its determination to become market leader in the country with five villages by 2015.
The announcement followed a sharp improvement in Club Med's interim results announced last week at a press conference held at the refurbished Club Med de Balaia resort in the Algarve.
Shares rose by 8% on news that the all-inclusive tour operator had posted an interim profit of €3 million for winter 2010 compared to a €22 million loss for the same period last year.
Although revenue fell 7.1% from €724 million in winter 2009 to €673 million in 2010, operating income rose by 16% to €28 million for the six months ending April 30 2010.
Ash Cloud Costs Club Med €5.6 million
The ash cloud wiped €5.6 million off its bottom line. Flat demand in Europe also reduced revenue by 5.5% although summer sales had bounced back during the last two months.
Henri Giscard d’Estaing, chairman and chief executive officer, said: “I’m very pleased to see the sharp improvement in our first-half results, which demonstrate that in a still flat European market, Club Mediterranee’s business model delivered over the winter season.
“In addition, the renewed pace of village openings with Yabuli in China and Sinai Bay in Egypt next winter has repositioned Club Med in a positive dynamic. By the end of 2010, two-thirds of our villages will be rated 4 and 5-Tridents and by the end of 2015, China will be our second largest market with five villages and 200,000 customers.”
The return to profit was attributed to continuing demand for the more upmarket four and five Trident villages, many of which have undergone massive refurbishment programmes.
Despite a 4.5% decline in customer numbers overall, the number of four- and five Trident customers grew by 1,000 to 294,000, accounting for a 1% point increase over winter 2009. The proportion of families in this customer base also grew by two points from 57% to 59%.
The tour operator plans to have two-thirds of its capacity in four and five Trident villages by 2010.
New Club Resorts in Egypt and China
New resorts due to open this winter include Sinai Bay in Taba, Egypt, which will open in December and focus on families and the Canadian-style Club Med Yabuli in Heilongjiang, a leading ski resort in China.
New resorts under development are in Valmorel (France), Oman, Fuzios (Brazil) and Cefalu (Italy). Sandpiper in Florida and Yasmina in Morocco will also be upgraded by 2011.
Kathryn Liston - A Jill of all trades, my 30 years as a travel journalist has seen me carry out all jobs from writer, editor and sub editor to online ...
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