When Fosun Group acquired the French health resort firm Club Med in 2015, it was clear the two firms were hoping to tap into the growing Chinese tourist market but it was unclear what form these efforts would take. Club Med had been struggling for some time to increase revenue. Recently, however, Club Med announced that it intends to open 20 locations near major Chinese cities by 2020.
The new resort line, Club Med Joyview, will cater specifically to affluent, middle-class families and business travelers to China’s major cities. They will be located in smaller cities outside China’s first-tier cities, with the first locations will be located in Anji County, 3 hours outside of Shanghai, and Changli County, about 3 hours outside of Beijing and open later this year.
It has been incorrectly reported by some media that the former location will open in Beidaihe, which is quite close to Changli County, but Club Med representatives confirmed to Jing Daily that Changli County indeed is the second location of their new resort line in China.
The new resorts are built upon the idea of bringing an “international lifestyle with French roots” to the Chinese market with short, premium holidays. Like Club Med’s other resorts, the new Joyview resorts will offer a variety of all-inclusive packages for both leisure and business travel.
Thus far, China has proved a lucrative market for Club Med. They already operate a ski resort, Beidahu in northwest Jilin Province, and four other resorts in Yabuli, Guilin, Zhuhai Dong’ao Island, and Sanya. Their success in China has been part of what has fueled their return to profitability in the year after its acquisition by Fosun. Club Med hopes to capitalize on this by increasing its focus on the Chinese market and posted 6.5 percent increase in revenue between November 2016 and April 2017.
Chinese affluent, middle-class consumers have been increasingly looking for higher-end, luxury travel experiences and in many way this demographic is still an untapped market.
However, Club Med is not reducing its global efforts. New locations are set to open in Italy, the U.S., and Spain.