Club Mediterranée Reined In Losses in 2004

Club Mediterranée, the French company, lost €44 million this year, yet that was €50 million shy of the €94 million it blew in 2003. Now the enterprise is apparently sneaking out of the red-number column for the first time in two years.

The company’s sales went up 1.2 percent –deducting the money it spent on corporate overhaul- to €1.6 billion, though returns fared differently depending on the region of the world.

Europe, for instance, endured a 3.3 percent slide as a result of a tough situation in the local travel industry. Asia, for its part, revved up to a blistering 14 percent spike, while America scored a modest increase.

As to its perspectives for the ongoing wintertime travel season, Club Mediterranée has so far inched up 3.6 percent compared to the numbers posted a year ago.

“The year 2004 has brought about a sharp about-face for Club Mediterranée,” the group’s President and CEO Giscard d´Estaing said. “For the first time in three years, we’re back in black numbers, even though we’re not seeing favorable market conditions yet.”

As to his company’s merger with Accor, the French megabuck company, Mr. d’Estaing explained “the move puts us in a position to be back at out best and be ready to pour as many as €100 million into the business in 2006.”