Club Med Reports Increases in Visitors, Revenue for 2011

Club Med Reports Increases in Visitors, Revenue for 2011
By Brian Major

Club Med announced its 2011 financial results highlighted by increases in the resort company’s village business volume and village operating revenue. The company posted the increases despite an operating loss of 24 million euros, of which 19 million euros were related to the cost of closing non-strategic villages.

Club Med’s business volume totaled 1.46 billion euros, a 6.3 percent increase over 2010, according to a company statement. The company’s village revenue increased by 4.4 percent to 1.41 billion euros, while RevPAR (revenue per available bed) rose 3.8 percent, led by a 2.8 percent improvement in average price per hotel day to 135 euros, combined with a one-point occupancy rate increase to nearly 68 percent.

Other operating income and expense costs represented a net expense of 11 million euros and mainly included restructuring costs. The company’s finance cost represented a net expense of 16 million euros versus expense of 22 million euros in 2010, reflecting the decline in interest expense resulting from the 50 million euro reduction in average net debt and improved financial ratios.

Net income before tax and non-recurring items quadrupled to 33 million euros in 2011, according to the statement, and reflected a net profit of 2 million euros versus a loss 14 million euros in 2010.

The company’s resort-wide guest total rose 2.1 percent in 2011, with the number of Club Med 4- and 5-Trident guests increasing by 130,000. In all, 810,000 customers stayed in “upmarket” Club Med villages during the period.