What we think of today as Club Med started in 1950 as a non-profit dedicated to developing an appreciation for outdoor life. My, how things have changed.
The current international resort corporation is most definitely for-profit, posting record revenue in the first half of 2006 as it saw the fruits of a savvy, contemporary business plan begin to pay dividends. At the same time, several of Club Med’s partners have decided to become shareholders, including a 2 percent stake by Air France-KLM, a strategic airline partner. The move comes amid reports of an increase in revenue and net income for Club Med worldwide.
Even as key personnel change and new resorts open and reopen, Club Med continues to redefine itself in an ever-changing, all-inclusive market. And the good news for agents is that the company sees them as a main ingredient to its continued success.
Club Med Americas
Perhaps the biggest changes for the company have been here in the Americas.
Club Med has recently announced the appointment of Cedric Gobilliard as president and CEO of Club Med, North America. Gobilliard, who started his career at Disneyland Paris, where he held positions in marketing and sales, succeeds John Vanderslice.
The Americas — which includes North and South America and the Caribbean — is one of the company’s most important regions.
“In many ways, the North American business has often been the leader in generating innovations for the Club Med brand,” said Kate Moeller, Club Med public relations director. “The concept of total all-inclusive was introduced several years ago in the North American zone. It was so successful, that Club Med resorts worldwide will follow suit this year. Now, the North American zone will push the concept of the all-inclusive even further with our new discovery resort, Cancun Yucatan, set to open in November of this year.”
According to Moeller, over the last several years Club Med has been reinventing the all-inclusive experience with more refined, richer accommodations, cuisine and activities. This is certainly true of one of Club Med’s newest resorts in the region, Buccaneer’s Creek in Martinique, and it appears to be the wave of the future for the company as a whole.
“With its redesigned and renovated facilities, its high-quality spa and the opportunity to discover the culture and history of the Yucatan Peninsula, Cancun Yucatan will symbolize the next step in bringing Club Med’s upscale all-inclusive offer to the North American market,” said Moeller. “The signature for Club Med in the years to come will become high-end services that include room service and total relaxation and comfort in a multicultural environment. We also envision making the majority of our resorts accessible to families in the next several years.”
Club Med officials have credited the recent upsurge in the company’s revenues and profits to the increased participation of travel agents, who have helped account for a guest repeat factor of upward of 70 percent.
After years of trying direct sales, which company officials admit failed, Club Med changed course shortly after Sept. 11, and reinvigorated its relationships with travel agents. The result was a revenue and customer base that grew faster in the western United States than anywhere else in the country.
Today, travel agents can tap into Club Med’s improved electronic marketing tools at a dedicated agent Web site, and the company is offering agent seminars at a slew of trade conferences.
Commissions for travel agents begin at 11 percent, and as their generated revenue for Club Med increases, that percentage can go as high as 17 percent.
With agents by their side, the company sees the financial picture as rosy indeed.
“The new Club Med is demonstrating that it is clearly on the right track and is now assertively positioned as the global specialist in upmarket, friendly, multicultural vacations,” said Henri Giscard d’Estaing, Chairman and CEO of Club Med.
All of which means we shouldn’t expect a return to non-profit status anytime soon.
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| AGADIR IS BACK Club Med has officially reopened its 374-room property in Agadir, Morocco (photo, top), after a $9 million renovation, which includes an increase in the number of deluxe rooms, the installation of air conditioning, a new overflow pool and improvements to the public spaces and bar and restaurant. The resort, which is now celebrating its 40th anniversary, features Moroccan-made materials and furnishings, including tiling, bronze work, rugs, pottery and leather and sculpted wood ceilings. The bar, for example, is now made of locally mined copper. The makeover, one of a series of current renovations at Club Med’s 85 properties worldwide, was the work of Paris-based designer Marc Hertrich, who will also oversee the design Club Med’s new $20-million property in Cancun, which will open in September. “Marc wanted to fuse contemporary and native styles,” said Club Med public relations director Kate Moeller, “so he went to local artisans and said, ‘Can you do this?’ and ‘Is it possible to do it this way?’ You can see the results in the renovation.” Another Club Med property in Morocco, Le Riad in Marrakech, has undergone similar renovations recently. Club Med Agadir, located on Morocco’s glistening southern coast, was opened in 1966. The public beach stretches for over five miles, and the resort itself is just 20 minutes by foot from the center of town. In 1960, a major earthquake all but destroyed the city, which was relocated several miles to the south and totally rebuilt. The final death toll was 12,000, making it the worst earthquake ever to hit Morocco. The property features bungalows scattered in a lush garden of oleanders and eucalyptus, some with ocean views. An annex building, known as “Le Ranch,” is located 10 miles away by free shuttle. Also available to guests is the nearby Dunes Golf Course, with three nine-hole courses, a driving range and two putting greens. |
