Club Méditerranée saw annual pre-tax profits rise by 7.3% to €35 million as it moves to attract more holidaymakers from fast-growing economies.
But net profits for the 12 months to October came in at just €2 million.
The French all-inclusive company said that this was “despite accelerating deterioration of the European tourism markets during the summer”.
The number of customers from the UK was down to 40,000 from 43,000 in 2011 but better than 39,000 in 2010 and 35,000 in 2009.
Revenues were up by 3.7% to €1.5 billion as Club Med saw only a marginal 1.9% rise in holidaymakers to 1.268 million over 2011. Within this figure there was a 7% increase to 57,000 staying in higher grade accommodation.
Booking for winter 2013-13 were down by 3.7% as of December 1.
The company is targeting China as its second largest source market with 200,000 holidaymakers expected by 2015. A new brand called ‘by Club Med’ is being created to target high income earning Chinese customers.
Club Med plans to increase the number of upscale villages and seek more business from developing countries such as Brazil and Russia.
Chairman and chief executive Henri Giscard d’Estaing said: “Club Méditerranée’s reported an increase in revenue for fiscal 2012 despite accelerating deterioration of the European tourist markets during the summer.
“Thanks to its powerful positioning on the upscale market, the group was able to protect its margins and demonstrate the resilience of its business model.
“Club Med is now in a position for a new step forward in the deployment of its international expansion strategy, by leveraging its stronger financial position, its upscale portfolio of villages and the ability to interface one-to-one with customers through direct distribution network.
“Club Med is positioned to capture growth in the market of all-inclusive upscale vacation packages in order to get by the end of 2015 one in three customers to come from fast-developing economies.”