Club Med, the globally recognized resort operator, is positioning itself to capitalize on the rising demand for upscale all-inclusive holidays, as it moves towards a public listing in Hong Kong after going private last year. The company, controlled by Fusion International since its $1.2 billion acquisition, filed for an initial public offering (IPO) in August, aiming to tap into a growing market segment that favors convenience and cost certainty combined with premium experiences.

All-inclusive vacations have seen a resurgence, driven by travelers’ preference for transparent pricing and the appeal of four- and five-star resorts. A recent survey conducted by British Airways indicated that nearly two-thirds of prospective holidaymakers expressed interest in fixed-price holiday packages, especially those offering an enhanced level of service. This trend aligns with Club Med’s strategy to upgrade its product offering beyond traditional budget all-in vacations.

Despite its longstanding presence in the sector, Club Med has maintained a relatively steady footprint in terms of number of resorts, operating 69 locations for more than a decade. However, the company plans to increase its portfolio to 85 resorts by 2030, with an emphasis on attracting visitors from emerging markets. The move reflects expectations that demand for inclusive luxury holidays in these regions will sustain growth in the sector.

The competitive environment remains challenging, with Club Med holding roughly a 1.1 percent global market share in resort operations. This modest share helps explain historically low valuations in the all-inclusive hotel market. For example, Hyatt’s acquisition of Playa, a rival specialist in all-inclusive resorts, for $2.6 billion last year, valued the business at approximately 9 to 10 times its projected 2027 earnings before interest, taxes, depreciation, and amortization (EBITDA), lower than Hyatt’s overall multiple of 17 times.

While inclusive holiday packages are gaining momentum, investors face uncertainty over whether Club Med represents the optimal entry point into the sector. Since Fosun International took full control of Club Med three years ago, the company’s revenue per available room—a key performance metric in hospitality—has shown little growth despite a robust rebound in travel following the pandemic. Nonetheless, Club Med remains one of the few publicly tradeable entities focused exclusively on the holiday resort market, although Fosun is expected to retain majority ownership after the IPO.

Fosun has yet to announce a listing price for Club Med shares, but once set, it could provide a benchmark for valuing other players seeking to expand their all-inclusive offerings. Industry competitors such as UK airline Jet2 and the soon-to-be-private easyJet are among those broadening their holiday package portfolios, suggesting intensified competition in the market for inclusive travel experiences.