Club Med’s Annual Ski Report - Brits Keep Calm And Ski On Despite Rising Cost Of Living
Today, luxury travel brand Club Med has revealed its findings from its annual ski report, The Economy of Ski: The Financial Factors Impacting the Upcoming Season. The report aims to explore the key themes holidaymakers are considering and grappling with this upcoming ski season, particularly in light of the current cost of living crisis.
As the nation faces a shift in the economy due to inflation and increasing prices, the ways in which Brits book their winter sports holidays have taken a unique turn as customers’ priorities adapt. Evidence shows that despite the current economic climate, there still remains a real appetite for ski holidays as the nation seeks escapism during this trying time. Although eager to travel abroad and take advantage of the first “post-restrictions” ski season, value for money is of utmost importance to consumers, with France considered the top destination to provide this. This report examines how socio-economic factors continue to inform booking behaviours, while exploring ongoing trends and developments in winter sports holidays.
Current Socio-Economic Factors
This upcoming ski season is set to be the first full, undisrupted season since winter 2018/19, following three years of travel restrictions. Although this is encouraging for both ski enthusiasts and the travel industry, it is important to consider how the current cost of living crisis impacts holiday booking behaviours. While some people are having to forgo their ski holiday this year in light of increasing costs, 55% of those polled are still going ahead, but with certain factors taking on more importance. When looking to book a destination or resort, value for money is now the single most important factor, and this is of the greatest concern to those aged between 45-54.
In light of the cost of the living crisis, 53% of people polled are considering a different winter sports destination. France comes out on top as the destination perceived to provide the best value for money and this is echoed by trends seen at Club Med. Sales at its French resorts for the upcoming season are up 36% compared with the same time last year, with Les Arcs Panorama, Alpe d’Huez and Tignes amongst the bestselling resorts.
Nicolas Bresch, Managing Director, UK & Nordics at Club Med comments, “With prices and currencies surveyed fluctuating in these uncertain times, we’ve made a promise to our customers and are guaranteeing that the price of their stay will not change after booking. We believe the all-inclusive ski holiday model will be more attractive than ever given this, with customers feeling safe in the knowledge that they are not going to be hit with lots of additional costs after booking.”
While spending in light of the cost of living crisis is front of mind for many, 60% of frequent skiers are in fact planning to spend more on a winter sports holiday this year. With the first restriction-free season upon us, it is evident that winter sports enthusiasts are wanting to get back to the mountains and are willing to spend more to achieve this. Frequent skiers are prepared on average to spend £1,979 per person, an increase of 53% (£689) compared to average spends for the 2021/22 season.
Data from Club Med reflects this with the average order value (AOV) of its winter sports holidays increasing by 9% year-on-year as the demand for luxury holidays continues on an upwards trajectory. When it comes to spending more on a luxurious experience, Club Med is opening its very first Exclusive Collection ski resort in Val d’Isère for the winter 2022/23 season. The resort will include 91 brand new deluxe rooms with balconies, 95 brand new spacious deluxe rooms and 30 suites. This is coupled with state-of-the-art health and wellness facilities and restaurants including Les Millésimes - offering the very best in fine dining with five-course taster menus on offer and wine pairing options. This resort is already at 70% occupancy capacity for the opening month in December.
Other factors also impacted by rising inflation and the cost of living include the type of accommodation people are considering for their winter sports holiday. More than half (57%) of those polled are reconsidering their accommodation options. This year, for the first time, the all-inclusive model is the leading option for accommodation, overtaking self-catering, which was the most popular for the 2021/22 season. Google Trends data from September 2022 taking a look at the past 12 months, also shows a 3,450% increase in people in the UK searching for the term ‘all-inclusive family holidays’.
Booking Behaviours and Destinations
As we look ahead to the 2022/23 season, people are looking to organise their holidays further in advance with research showing that 87% of frequent skiers have already booked their trip six months or further in advance. This is in contrast to last year where 72% of frequent skiers were prepared to book at less than a month’s notice. Data from within the Club Med business further supports this, showing that clients have booked at least three months earlier when compared to the 2021/22 season.
This winter, many Brits have decided that they’d like to try a new type of holiday. Of those polled, 46% cited that this year will be their first winter sports holiday and of these, two in five (40%) mention this is down to wanting to try something new. At all of the Club Med mountain resorts, there are activities that cater for everyone, not just avid skiers.
Throughout 2022, the travel industry has been presented with an array of issues, including the situation that has unfolded at airports. When reviewing the airport and airline chaos of recent months, 69% of Brits are now considering travelling with hand luggage only to avoid long delays or lost luggage. In relation to airport travel, two-thirds (66%) would consider holiday options which avoid flying altogether.
In terms of destinations, Switzerland (38%) continues to be the most popular for the ski season, followed by France (37%), Austria (28%), Italy (27%) and Canada (23%). This suggests people are still after those traditional alpine resorts and are also opting to stay closer to home. Aspen, Saint Moritz and Les Deux Alpes topped the most popular Club Med resorts list, with Alpe d'Huez and Val d’Isère rounding out the top five.
Nicolas Bresch, Managing Director, UK & Nordics at Club Med, comments, “It’s encouraging to see that many of the destinations Brits want to travel to are places where we have some of our best winter ski resorts. We are excited to see that the appetite for alpine destinations is on the up as we have ambitious expansion plans over the next five to ten years, including resort renovations for Serre Chevalier next season and Saint Moritz for the 2024/25 season. This is in addition to the opening of an Exclusive Collection space at La Rosière which will now offer 43 suites from December 2023 and an entirely new resort in San Sicario in the heart of the Italian Alps for the 2025/26 season. As always, we are working closely with our customers and trade partners to understand where the greatest demand for new resorts lies and aim to accommodate.”
When looking at a destination or resort, value for money is the single most important factor for 40% of people, while 39% of frequent skiers deem good conditions and snowfall as one of the most important factors when choosing a resort. Resorts located in Les Arcs and La Rosiere see a higher than average snowfall in December, with La Rosiere on average getting 52cm on average in the run up to Christmas alone, which helps to explain their popularity early in the season.
Sustainability
Climate change is at the forefront of public consciousness now more than ever and many have taken definitive action to reduce their environmental impact. Therefore, it is no surprise that 58% of the people surveyed look at the sustainability credentials of their holiday provider before booking. This figure is up from 54% in 2021, demonstrating the ever-growing significance of sustainability for the customer.
The travel industry does not solely provide escapism, leisure and adventure, but provides these pleasures at a certain cost to the environment. The issues which have the biggest environmental impact when it comes to international holidays are air pollution (48%), energy consumption (39%) and plastic waste (39%) according to the research. Club Med has implemented a range of eco-commitments to improve the environmental management of its business, aware of the onus placed on the travel sector to reduce its carbon footprint. Notably, the Club Med resort at Valmorel was the first mountain hotel in France to be certified HQE (High Environmental Quality) in 2012, while all new resorts to undergo construction since 2018 are BREEAM eco-certified (or equivalent). More recently, the ‘Happy to Care’ initiative has now seen 100% of all eligible Club Med resorts receive a Green Globe certification. Across all resorts, single-use plastic items have been banned.
Eco-conscious choices are of particular importance to those going on winter sports holidays as travellers look to spend the majority of their time amongst nature. When booking a ski holiday, 43% of frequent skiers report that they choose holiday providers which give back to the local community, while 37% choose companies which sustainably source food, and 35% select those which are single-use plastic free.
Nicolas Bresch, Managing Director, UK & Nordics at Club Med comments: “Our commitment to sustainability began over 40 years ago, in 1978 with the introduction of the Club Med Foundation. The Foundation continues today to strive to support local communities and the environment in which we live and house resorts. We are always looking for ways we can do better as one of the biggest all-inclusive holiday brands, not only in Europe but worldwide, which is why we have worked hard to make sure 100% of eligible Club Med resorts are Green Globe Certified. We understand that sustainability is becoming increasingly important for holidaymakers, and we are proud to say it has and always will be a priority for us.”
A summary of the Club Med 2022 report can be found online here.
