After surfing through the 1950s, pioneering Club Med heads for ski trails

The company that started the trend towards all-inclusives is now turning its attention in a seemingly unlikely direction: upscale ski resorts. But that raises the question whether it will be smooth downhill racing for the former Club Med.

"Club Med started the all-inclusive trend in the mid-1950s, and the industry hasn’t looked back since," wrote directorofhotels.com.

"Opened in 1950, Club Med was the world’s first all-inclusive vacation, and it was all about excess: food, drink, and, eventually, sex. The Club attracted mostly young couples and singles, and it grew up smack in the middle of the sexual revolution," wrote justmeans.com.

The Paris-based Club Med started out as a low-cost resort chain and surfed profitably through the 1970s on its reputation for "sea, sex and sun. It sought to project a more family-orientated image in the 1980s and 1990s, but that wasn’t enough to offset the competitive pressures from companies that offered newer resorts at comparable prices," wrote The Wall Street Journal.

At its peak, Club Med owned 120 properties around the world, including many in hard-to-reach exotic locations. But the company declined in the 1990s as competitors sprang up that broadened beyond couples into the family market with even upscale hotel putting their toes in the water.

ResortCompete says there are several reasons why "all-inclusives are thriving this winter."

They include travelers’ knowing in advance their costs for rooms, food, drink and entertainment.  They are also frequently found in some of the world’s most stunning settings. Romance has long been a lure for couples but in recent years many all-inclusives have added programs for the entire family.

Gourmet meals are another lure at many resorts of this type. And so is the personal attention.

As a result, many all-inclusives have an extremely high rate of guest returns. Why?

"It’s due in large part to service that is so personal and friendly, you cannot help but want to go back," says ResortCompete.

There are some destinations such as Mexico where all-inclusives are particularly thriving.

"Mexico’s visitors have sent the message loud and clear. They want no-hassle vacations for one set price, be it $150 or $600 per night, without all those pesky decisions about where to go and what to eat," says the San Francisco Chronicle. "They want a safe place where the kids can play while their parents sip piña coladas at the pool bar. Fancy restaurants, spas and gyms are welcome amenities, of course, and excellent service a necessity."

Even destinations rich in culture and gastronomy are experiencing the all-inclusive demand.

More and more hotels are also offering guests all-inclusive plans and packages. Those include major chains.

Starwood Hotels & Resorts Worldwide, Inc. and Sunstar Hotel & Development, S.A., last year announced the opening of the Sheraton brand’s first all-inclusive resort – The Sheraton Bijao Beach in Panama. The hotel marks the second Starwood all-inclusive resort in Central America.

"All-inclusive plans used to be about 20 percent of the business," in Mexico, said Abel Villa, Sales Director at the Villa Premiere hotel near Puerto Vallarta. "Now it’s more 50-50 and demand is increasing."

AMR has been particularly successful in its ten years in the business. It represents several brands including Sunscape Resorts & Spas, Secrets Resorts & Spas, Dreams Resorts & Spas, Zoetry Wellness & Spa Resorts, and Now Resorts & Spas. It began in 2001 with just one Sunscape resort in the Riviera Maya.

Today, AMResorts has 28 properties, four brands and $520 million in sales. It’s also planning additional resorts in Los Cabos, Puerto Vallarta, Cancun, Cap Cana, Punta Cana and Costa Rica.

The venerable French resort operator Club Med—once mostly known for its beachfront huts and sprawling buffets—is now looking at upscale ski resorts to the US and Canada for future expansion, says the Wall Street Journal. Those two areas make up about one quarter of the global skiing market.

Club Med calls itself the global leader in ski lodging due to its 18 resorts in the Alps.

"But the company faces steep challenges" in its new direction, reports the Journal.

One reason is that prime properties in the hottest ski markets are in demand and there are few for sale.

"And Club Med must also convince affluent Americans to embrace a pricey version of the all-inclusive model that Club Med invented and made famous but long has been associated with cheap destinations for partygoers," says the Journal.

Despite recent growth in the all-inclusives, it’s still often characterized as mainly budget resorts for couples and singles, say travel observers.

Club Med now has 80 resorts world-wide, including a handful in Asia. Last year, Club Med opened its first Chinese resort—a ski resort—and it plans to open four others in China by 2015.

By David Wilkening