Club Med still hurts after US attacks

THE ongoing fallout for the global holiday industry from last September's terrorist attacks on the US has been shown graphically by Club Méditerranée, the French-based holiday operator.

Revenues for the celebrated bourgeois sun, sea and sand holiday company fell 13.5% in the months May to July, to e451m (£289m). But the overall slump conceals a tale of two continents: reservations by the company's core French clientele rose 8.9%, leading to French revenues 3.9% up on the same quarter of 2001.

But in the US, where Club Med has used its upmarket image to attract clients to its Mexican and central American villages, holidaymakers were conspicuously fewer.

Executive chairman Philippe Bourguignon said the slowdown was compounded by late bookings. He is confident cost-cutting and moves upmarket after last year's profit warnings are positioning the group for a strong rebound.