Spotlight

A pioneering brand

Club Med has created an all-inclusive concept for its resorts that would not only bring about exclusivity but also help it create a destination in itself. By Dinkar Farwaha

When Gerard Blitz, a Belgian water polo champion, visualised an idea of building vacation villages that would be affordable for all, little did he know that he would pioneer a trend. From an endeavour to generate an environment absolutely different from other resorts, where guests can participate in an exhaustive range of leisure options without worrying about extra charges, Club Med came into being.

The all-inclusive package, in which a guest pays a single fee for transportation, accommodation, three meals a day, snacks, beverages, sports and evening entertainment, became the unique feature of the resort. The concept was innovative and found takers owing to its uniqueness that was then missing. This led to a process of growth and the genesis of a brand as well.

Growth path

The first Club Med resort was opened in Mallorca (an island in Spain) where thatched huts and tents were used. To ensure that each resort reflects the country's indigenous atmosphere where it is built, it was made sure the development of the resort revolves around the natural environment. In 1955, the chain ventured outside the Mediterranean for the first time when it opened a holiday resort in Tahiti. It later forayed into the North American market by opening resorts in the Caribbean and Florida. The chain made its presence felt in the Asia Pacific market in 1980 with the launch of Club Med in Cherating Beach, Malaysia. Today, the chain operates 80 luxurious resorts in Europe, Africa, USA, the Caribbean, South America, French Polynesia, Asia and Australia.

Developing the selling strategy

The company has developed a selling strategy for itself by giving exclusivity to its product. Primarily, the customers are given a special designation in Club Med - Gentils Membres (GMs). The employees (administrators, chefs, hostesses, sports instructors or for that matter entertainers) are referred to as Gentils Organizateurs (GOs). "The GOs are the soul of every Club Med resort," opines Mumtaz Moiz, country manager (Singapore) and business development manager (India) for Club Med. She adds, "The unique feature in every resort is that all the GOs and GMs play, dine, drink, and dance together." According to her, GOs come from diverse nationalities (more than 50 different countries).

The resort also hires local staff as cleaners and cooks and they are known as Gentils Employés (GEs). To distinguish itself from its counterparts, the company uses trident symbols to rate the comfort level of each resort. For example, two-trident villages focus on providing all the necessities at an affordable price. Four-trident villages on the other hand focus on comfort and offer a much higher level of comfort than say two-trident villages. Moreover, all the resorts offer huge sports centres. From water sports (swimming, sailing, water-skiing) to adventure sports (wind surfing, scuba diving, kayaking) to tennis and soccer and even circus skills like trapeze and trampoline, the resorts offer a comprehensive range of sports in the all-inclusive package. Factors like these give a sort of exclusivity to the product.

Setting it apart from the competition

With time, the all-inclusive vacation package became one the fastest growing segment in the hospitality and tourism sector. In mid 1990s, chains like Club 18-30, SuperClubs, Carnival Corporation, Sol Meliá, and Sandals Hotels posed serious competition to Club Med. To set it apart from the competition, the company developed a plan to strengthen its core values and essential qualities. All the villages were renovated (which included addition of spas, luxurious suites and extensive customer choice) and a large sum of money was spent on marketing and introducing new activities. From thatched huts and tents to modern hotels and bungalows, the resorts gradually evolved over time. Some other changes include choice of shorter stay periods (previously one week was the minimum length of stay), provision of specialty restaurants, special facilities for children (in the form of baby club, mini club or a kid's club). "However, the spirit and philosophy of the resorts have remained the same, which is to simplify the vacation experience as much as possible," informs Moiz.

Over the last couple of years, the chain has focused chiefly on luxury for its members and has globally launched or re-opened 10 villages, renovated six villages and closed five villages. Latest developments include the launch of Club Med La Plantation d'Albion in Mauritius, which opened in September 2007 and the re-launch of Club Med Bintan Island in March this year. Since 1998, the company's percentage of upmarket (four-trident and three-trident category) resorts has increased from 66 per cent to 80 per cent.

On the other hand, a sharp decline has been witnessed in the number of two-trident villages (from 28 per cent, they have gone down to seven per cent.) Recent trends and these figures strongly suggest that after years of positioning itself as a product for all segments, the chain is now focusing more on luxurious holidays for its members. Its latest advertising campaign, which has been created by French luxury brand specialists Publicis Et Nous, is also targeted towards the luxury market. "The new signature 'Club Med: Where happiness means the world' positions Club Med as a destination which is not only luxurious but also offers guests the freedom to enjoy whatever makes them happy," says Moiz.

From a hotspot destination mainly for singles and young couples to developing itself as a popular vacationing place for people of all age groups to repositioning itself in the luxury brand sector, Club Med has time and again proved to be a trendsetter. Such consistent initiatives have helped the company to bring people together from different backgrounds and provide them with an atmosphere where they can take part in as many activities as they wish to or simply unwind and relax.