Company: Club Méditerranée (Club Med)

Founders: Gerard Blitz

Industry: Leisure and Hospitality

History:

Club Méditerranée, or Club Med, is a corporation that offers vacation packages around the world. Club Med was founded in 1950 by Belgian Gerard Blitz, a former water polo champion. The company started as an organization that accommodated members in simple huts in villages on the Island of Mallorca, Spain. Today, these simple huts have been replaced by modern blocks with fully equipped facilities.

Between 1963 and 1993, when Gilbert Trigano was in charge, the club increased its number of villages. Winter villages were established in 1956 and the club offered winter sports and activities.
The club attracted young people mostly when it first started. In 1967, Club Med opened its first Mini Club, making the corporation a holiday destination for families as well.

In 1995, Club Med fully became a for-profit company and ceased being a non-profit club. The company still charges customers with a membership fee and an annual fee though, as it still holds on to the membership system.

Club Med experienced a downfall in their fortunes when in the 1990s competitors in the same market imitated their concept. This prompted the company to radically alter their strategy under Philippe Bourguignon’s leadership in 1997. Club Med opened French gyms, bar and restaurant establishments, and affordable resorts. The company also planned 13 new villages for the next decade. This attempt at reviving their success failed, though, due to the events that followed the 9/11 attacks in the US in 2001.

In 2002, a new approach was made when Henri Giscard d’Estaing became CEO. The club focused on the villages and vacationers. This strategy proved successful; by 2005 the company started making substantial profits again.

In 2006, the corporation and its partners invested over $530 million in renovating their offerings – they revamped seven of their rudimentary resorts. In 2008, they launched an advertising campaign and dedicated 25 million euros in 24 countries.

Leadership:

Henri Giscard d’Estaing, CEO
Hendel Duplessy, General Manager