Fosun-owned Club Med says Hongkongers heading for ski slopes, bucket-list destinations as travel bookings rebound
- Club Med data shows that people are now spending 23 per cent more and staying 10 per cent longer than they did before the pandemic
- The resort operator, owned by Hong Kong-listed Fosun Tourism, sees an increase in advance bookings, making its 2024 figures ‘promising’ already
Hongkongers are ready to splash out more money on travel, especially to snowy and premium destinations, according to resort chain operator Club Med.
The company, owned by Hong Kong-listed Fosun Tourism, racked up record sales of last-minute travel bookings for September, which signals that tourism in Asia is in a “rebound phase” after the rollback of travel curbs, said Rachael Harding, CEO of East and South Asia and Pacific.
However, mainland China’s outbound market is still lagging behind, she said.
The last-minute nature of recent bookings shows people have lingering concerns about making long-term plans, Harding said. But Club Med also sees booking patterns shifting back to a more traditional profile with more advanced bookings, making the company’s 2024 figures “promising” already, Harding said.
Club Med data shows that Asia-Pacific travellers now spend 23 per cent more and stay 10 per cent longer than they did before the pandemic. Bucket-list destinations have also become popular choices among Club Med customers this year, with luxury beach resorts in Maldives and Bali proving popular in addition to ski destinations.
Hong Kong locals are keen for ‘revenge travel’, and Japan has always been a top-of-mind destination, said Prudence Lai, senior research analyst with Euromonitor International. “A lot of Hong Kong locals have saved up travel budget during the three years of pandemic and are willing to spend more on premium local experiences when travelling abroad this year, for example on food and dining, and experiences such as skiing,” she said.
Ski trips account for 65 per cent of Club Med trips by Hongkongers, the highest percentage in the world, according to the company. While most skiing-related bookings are in Asia, especially in Japan, the share of European destinations this year increased compared to pre-pandemic levels.
Last December, Club Med opened a new resort, Kiroro Peak, in Hokkaido Japan. Its 80 per cent occupancy rate in the first quarter this year boosted the company’s confidence to expand its ski-sector operation in Hokkaido, with another resort, Kiroro Grand, slated to open later this year right next to the existing one.
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“There is definitely a need to reconnect with a passion, like skiing or scuba diving, that people haven’t been able to do for some time,” said Harding, who now leads a team focusing on Asia-Pacific markets excluding mainland China.
“Changes in trends towards exploration, adventure and wellness from Chinese and wider travellers are being noted by major Asian resort operators as they look to capture the returning outbound demand by curating culturally immersive experiences which cater to the mind and body,” said Shaman Chellaram, senior director of Asia at Colliers’ Valuation & Advisory Services.
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Club Med’s global business volume doubled last year compared to 2021, returning to pre-pandemic levels. The recovery in Asia was much slower than the rest of the world, as most Asian countries were more cautious about lifting Covid-19 travel restrictions. Some of Club Med’s 20 resorts in the Asia-Pacific region were shut down during the pandemic and only reopened less than a year ago.
This year, Asia’s tourism market has seen an aggressive rebound. The number of customers booking Club Med resorts in Asia-Pacific reached 245,000 in the first half of 2023, up from 107,000 last year, according to Fosun Tourism’s interim results. The company’s business volume in Asia-Pacific in the first half of 2023 tripled compared with the same period last year. It has not fully reached the pre-pandemic level yet, with a gap of 8 per cent to its 2019 figure.
The company planned to add 17 more new resorts and renovate 10 existing resorts before 2025.
