Club Med’s Mufraggi Discusses Company’s Evolution
Hotel & Resort Club Med Claudette Covey January 30, 2014

Club Med, a pioneer in the all-inclusive market, opened its first all-inclusive resort in 1950. We sat down with Xavier Mufraggi, Club Med’s CEO for North America, to talk about how the company has evolved over the years. He also discussed the company’s expansion plans and its focus on active vacations geared toward families.
How’s business?
We had a very good year in 2013, which was a record for the last 10 years. This year should be even better. We’re already seeing a lot of movement for 2015.
How many resorts are in the Club Med portfolio and how many more will be added?
We have 72 resorts worldwide. We have eight in this part of the world between the U.S.A. and the Caribbean. As of today we plan to open at least two or three resorts per year around the world.
In China we’ll have five resorts by 2015. And in this part of the world, in North America and South America, we should open two new resorts in the next three years.
What are your expansion plans in North America?
Our No. 1 priority is to open a ski resort in the United States or Canada. If it’s in Canada it will be in Quebec. We will open one in Canada and the U.S. by 2020. We also have discussions in California, Lake Tahoe, Colorado and Utah.
Who are Club Med vacations targeted to?
We have always really positioned ourselves to active vacations. You will have 10 to 12 different activities at a given resort.
But at Club Med Sandpiper Bay in Port St. Lucie, Fla., we have tennis, golf, fitness, volleyball and triathlon academies with specialized facilities and training for all ages.
The tennis director, Gabe Jaramillo, has trained eight No. 1 players in the world.
How has Club Med changed and evolved over the years?
There was a strong shift in 2000 when we renovated most of our properties to be more upscale. We moved from a base that was one-third singles, one-third couples and one-third families. Now Club Med is 70 percent families, 20 percent couples and 10 percent singles.
We’ve really moved to an upscale family environment -- especially at Club Med Sandpiper, where we might be 80 percent families.
How did the Club Med Sandpiper Bay become so successful?
First, it’s following the big trends we see in global tourism. You see more and more people trying to maintain a good balance between time they want for themselves to recharge doing sports, time for their work and time for their families. At Club Med Sandpiper you have the answer.
The second aspect is the all-inclusive nature of the product, a segment of the industry that is really going strong in the Caribbean and Mexico. Club Med Sandpiper Bay is the only all-inclusive in the United States. People really like the convenience and the value for money we can offer. That’s why the resort is so successful.
When did Club Med begin targeting a more affluent clientele?
The shift really happened five years ago. We made the choice to cater to a more upscale clientele and demographic. What we provide today is completely in line with what the upscale clientele is looking for. They don’t have that much time.
Most of the time now Mommy and Dad are working. So when they go on vacation they want time to recharge, they want time to connect with a spouse, they want time to spend with the kids and they still want to do their own sports. There’re not that many places you can have all that.
How important are travel agents to Club Med’s success?
Travel agents have played a huge role in our success, particularly those agents that want to specialize and know their markets and how to create added value.
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