Club Med: Making a Comeback

Topics: Club Med, All-inclusive resort, Gérard Blitz Pages: 3 (828 words) Published: November 24, 2010
Club Mediterranee (Club Med) is a corporation in the all-inclusive resort market that manages over 140 resort villages in Mediterranean, snow, inland and tropical locales in over 40 countries. It was founded by a group of travelers, headed by Gerald blitz, in 1950However over the years they realized that all-inclusive system does not work anymore. People are not willing to spend large amounts of money for vacations. Its competitors have been able to customize travel packages for each customer. Even though it seems easy for Club Med to do the same but because it has so many resorts all over the world the currency devaluation and political boycotts are causing Club Med problems with these decisions. These external factors are reducing the company’s ability to increase sales and gain new customers.

The Club Med style can be best described by the sense of closeness found among the managers. Because they are all former village chiefs they know the company’s everyday operations. The difference between Club med and other hotels is that, it is much simpler. Even the room decorations are simple and spares. Also its distinguished feature is that it is a place where one can “escape”. However in 2004 they introduced a new strategy that gave consumers a differentiated product that was more chic and luxurious, especially in the Americas.

Until 1986 Club Med had a very strong position in the all-inclusive resort market. If one wanted to go to a resort but use another company it had to pay 50-100% more. Internet accounts more than 20% of its sales. Finding a labor was never a problem for this resort either.

In 1986 competition began because other companies adopted its style. The only difference was that Club Med’s service included drinks. In 2004 it reverted to and all-inclusive deal. In 2005 it declared the Alps area that attracted thousands of tourists. Jack Tar Village is one of the competitors of Club Med. It operates mostly in Caribbean. Its resorts are positioned as...
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