NEWS — HOT STORIES 4
Rival Club Med bidder trumps Chinese conglomerate to value operator at €915m
“Over the years we have become a front-line player of the tourism sector in the French Alps.” Italian investor Andrea Bonomi raised his offer
for Club Med to €24 a share last week, valuing the company at €915 million and outbidding an improved offer from Chinese conglomerate Fosun International. France’s stock market gave rival bidders until December 19 to outbid Bonomi. Reports have suggested that uncertainty about the
Rebekah Commane in Val Thorens
Club Med has reiterated its commitment to its core French Alps ski product as a bidding war for the all-inclusive resort operator steps up. Speaking at the launch of the Club Med Val
Thorens Sensations resort in The Three Valleys, chief executive Henri Giscard d’Estaing said he wanted any new owner to maintain the company’s links to the French Alps. He said: “Our futures are entangled. It is even more important to underline this today as the fate of Club Med is at stake on the stock market.
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future ownership of Club Med has restricted its ability to deliver on medium-term plans. D’Estaing appealed for support from business partners, saying: “Now is the time for us to count on you. We need your support.” The operator has undergone a number of changes in its UK management team in recent months, but has pledged to increase its commitment to the trade. D’Estaing announced Club Med is taking on the management contract for a second ski resort in
“Our futures are entangled. It is important to underline this today”
China, the five-star Beidahu, in northeast China. The 170-room property is due to open in summer 2016. Club Med entertains more than 150,000 customers
a year in the French Alps, employing more than 3,000 staff during the winter and 1,000 in summer.
Tui hails ‘unique’ sales role in £362m profit Ian Taylor
Tui Travel reported “strong UK trading” and 12 months of “outperformance” as it announced an annual group profit of £362 million last week. But chief executive Peter Long said there had been no rise in overall demand and he expects little improvement in the market next year. Instead, Long hailed the success of the company’s ‘unique products’ strategy and its drive to take sales direct and online. Tui’s direct sales in the UK passed
90% and Long told analysts: “We breached 50% in [UK] online sales; 84% [of mainstream sales] were unique. Why? They give a high level of customer satisfaction, drive repeat business and drive early bookings and higher margins.” He added: “We are able to offer very good value due to our scale – that is key.”
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travelweekly.co.uk — 11 December 2014
Long said the overall market had not picked up, adding: “There has been a delay in consumer confidence transferring into bookings. Our performance was underpinned by our unique holidays.” The falling price of oil – down 40% since the summer – could have an impact, he said, but added: “A significant percentage of our fuel is contracted [already]. It will drive better pricing as we go forward, and that could drive demand. However, a lot of customers’ disposable income is not improving so we don’t anticipate a massive upswing. “This is a not a time when people
are going to want to be spending more.” However, Long said he sees “exciting
opportunities” in long-haul, with the company
operating its entire UK programme with a fleet of Boeing 787s and considering buying more. ❯ Travel Weekly Business, page 71
MORE HOT STORIES
Club Med chief executive Henri Giscard d’Estaing
51%
Proportion of Tui Travel sales made online in year to September
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