Club Med Reports Flat Third-Quarter Financial Results of $455 Million

Club Med released its third quarter financial results, reporting a rise in village sales revenue of 0.3 percent to €342 million ($455 million) primarily because of healthy Easter holiday numbers in May, which offset the drop in July business impacted primarily by the French market.

Capacity was down by 4.5 percent over the third quarter, with a 7.5 percent drop in capacity in the Europe-Africa regions due to the permanent and temporary closings of a variety of resorts.

On a brighter note, bookings in the Americas region were up 6 percent due in large part to robust U.S. business. Club Med attributed Asia bookings rising 8 percent due to fast-growing economies, while China bookings alone were up 28 percent.

“The financial results in the third-quarter of 2013, which show a 6 percent increase in revenue in the Americas, illustrate that despite today’s harsh economic climate, Club Med continues to be a leading force in the all-inclusive vacation industry,” said Xavier Mufraggi, president and CEO for Club Med North America.

“Exceedingly more U.S. and Canadian travelers are looking for different vacation options outside of the Caribbean and Mexico, and with 71 all-inclusive resorts worldwide, Club Med stands poised to meet this demand. The ski market has shown especially great potential, with the announcement of the newest mountain resort, Val Thorens, set to open in December 2014,” he added.

Source: Travel Pulse, http://www.travelpulse.com/club-med-reports-flat-thirdquarter-financial-results-of-455-million.html