All-Inclusive Pioneer Club Med Aims for Stock Market Return: Key Facts to Consider
The Giscard d'Estaing-led Trident Brand is eyeing a Paris Stock Exchange return.
Written by Stéphane Barge
Investigative Chief
Published on
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Club Med is stirring up a storm! The brand's boss, Henri Giscard d'Estaing, unveiled his plans yesterday to take the vacation pioneer public on the Paris Stock Exchange, ten years after its delistment. Since he took charge of the luxury vacation provider over two decades ago, the son of former President Valéry has given it a high-end makeover. He officially completed this revamp last year by elevating all 68 villages to luxury status.
For the past two years, its results have vindicated this strategy. In 2024, the company broke its €2 billion turnover barrier for the first time, with an impressive operating margin of over 9% - nearly four times greater than a decade ago. To double in size and boost its margins to 15%, as it now aims, the boss must seek funding for this ambitious growth. But this pursuit won't be easy, as its majority shareholder, the indebted Chinese Fosun Tourism, shows little enthusiasm.
There's been a lot of rumbling between the French travel titan and the Asian tourism conglomerate. "We have no intention of listing Club Med on the stock exchange," Fosun stated today. This could threaten the future of the Trident brand, a premier vacation provider celebrating its 75th anniversary this year. Here's a lowdown on this French icon.
The origins of a passion project
"Developing a taste for outdoor life, physical education, and sports", was the aim of the Club Méditerranée association, officially inaugurated in a Prefecture on February 11, 1950. Founded by Belgian entrepreneur Gérard Blitz, a water polo player and son of a diamond merchant, the association kicked off with its first members meeting at Austerlitz station in Paris. They embarked on a 36-hour train journey to Spain and were welcomed by their first Club Med village: 200 repurposed army tents nestled on the shores of Alcudia, a humble fishing village in Palma de Mallorca, Spain.
The cherished €43 T-shirt
It's one of the hottest sellers in Club Med's boutiques, found within each of its villages. The iconic 45 T-shirt, launched in 1995 to celebrate the 45-year anniversary of the Trident brand, remains popular among travelers. Strangely, the 50 T-shirt unveiled in 2000 to commemorate the brand's 50th anniversary didn't fare as well. It was pulled from the market after just a year, at the request of some 10,000 club members who petitioned for its return! The 45 T-shirt faces stiff competition from the 88 T-shirt, launched in Asia to avoid offending superstitious individuals. In Asia, the number 4 is perceived as unlucky, while the number 8 connotes happiness and prosperity.
Adventuring onto the seas
Club Med ventured into the cruise industry in the 1960s
Club Med dipped its toes into cruises in the 1960s by leasing the Ivan Franko, a Soviet-flagged ship. This early foray, made during the Cold War, proved short-lived. The French all-inclusive vacation powerhouse returned to this market in the early 1990s, investing in its own ships. Initially, they owned the Club Med 1, later sold to an American company. Then came the Club Med 2, a colossal five-masted sailboat measuring 187 meters, now offering luxury cruises in the Mediterranean and the Caribbean.
The mission against waste
Following his father's footsteps, who crusaded against waste, Henri Giscard d'Estaing has launched a war on food waste. Gone are the days of the Pantagruel-like buffets! Chefs now plate dishes in front of customers, with portions measured to minimize waste. In the kitchen, the smart bin, equipped with cameras to measure wasted food, has streamlined waste reduction efforts. In a Bali village (Indonesia), this system has reduced waste by 56% in just six months, saving approximately €30,000.
Frozen Slopes in Indoor Winter Wonderlands
The Club Med Urban Oasis Taicang resort in China has been enjoying a snowball effect since its opening late 2023. Six months later, it welcomed 300,000 snow enthusiasts to its expansive indoor ski slope. Not eco-friendly, considering its energy-intensive climate control, the resort's popularity has prompted Fosun Tourism, the Chinese owner of Club Med, to plan expansions, doubling the skiable area with local authorities' support!
Tags: * Club Med * Vacations * Stock Market * Luxury
- With the Trident brand aiming for a Paris Stock Exchange return, Henri Giscard d'Estaing, Club Med's boss, may need to explore financing options beyond Fosun Tourism to fuel the growth of this luxury vacation provider.
- As part of Henri Giscard d'Estaing's mission against waste, Club Med has streamlined its food waste reduction efforts at its resorts, employing methods like smart bins and serving meals plated in front of customers to minimize waste.
- Club Med's foray into the indoor winter wonderlands extended beyond its Taicang resort in China, as it offered a snow-filled experience on an expansive indoor ski slope, attracting 300,000 snow enthusiasts within six months.
