WHEN Club Med CEO Henri Giscard d'Estaing was building an upscale resort in Marrakech, he and members of his management team visited the super-luxury Amanjena resort in the same city - where the architecture buff in him admired the scale and beauty of that hotel and its spectacular design.

"The architecture of the Aman there is really lovely," remembers Mr Giscard d'Estaing. "I said our Le Riad Club Med should have the same level of beauty and quality - but should be totally different."

In some ways, Club Med is the anti- Aman - a resort concept fundamentally opposed to what Aman and other ultra high-end hotels have to offer. Instead of focusing on discretion and privacy for adults, Club Med appeals to people who want to bring their families and interact with hotel staff and other guests - but in an up-market, all-inclusive environment.

After he took the reins at Club Med in 2002, Mr Giscard d'Estaing, 51, who is a son of former French President Valery Giscard d'Estaing (1974-1981), embarked on an extensive programme to revamp Club Med's once mass-market image. In effect, he made a one billion euro (S$2.1 billion) bet on the company, renovating dozens of resorts and opening many new ones while closing others that were deemed not to be in keeping with the company's new direction.

By this year Club Med will have completed the first phase of its major makeover.

The best rooms at its most luxurious resorts are now comparable to the top rooms in a five-star hotel. And the original no-holds-barred, fun-in-the-sun philosophy has been tempered by a need to attract a more discerning, family-friendly clientele with large discretionary income.

At a recent gathering in Greece to announce its interim results, Club Med showed improvement in the bottom line as well as steady growth in terms of customers - although the jury is still out on whether its financial future is secure.

"When you do a dramatic change in direction, you first need time to physically change resorts," points out Mr Giscard d'Estaing.

"Second, it can only work if your clients like it - and there is every sign that they do.

On a pure economic front, we also have clear signs that it is working. They want Club Med to be casual, convivial and friendly.

"Third, we had to make sure the team understood and liked the new direction. We surveyed our GOs on whether we should be the biggest or the best - and they said the best."

Mr Giscard d'Estaing notes that Club Med villages are invariably found in the best locations. "When you have the best locations and are not offering the best kind of comfort, this is not playing to your strength.

We are targeting families and couples who want upscale, all-inclusive and multi-cultural holidays. We are in the luxury-plus section, not just luxury."

Given there are only nine Club Med properties in Asia, and Asia is the region with the biggest growth potential, Mr Giscard d'Estaing says the company is looking closely at adding resorts, possibly in China, Vietnam, Cambodia, the Philippines and India.

The next stage also involves building and marketing villas within resorts. "For me, innovation is the ability to combine things like luxury and a friendly atmosphere," Mr Giscard d'Estaing says. "Villas combine luxury, privacy and openness to activities - it's the best of both worlds.

"But what we will never do is have a place that gives the impression that it is packed. Luxury is space.

"Instead, our objective is to grow through innovation. For instance, we will be in West Africa in two years - and we will focus on being ecological and discovering nature.

"We will keep the values, ambitions and spirit of Club Med, while adapting to tomorrow's world," he adds.

This article was first published in The Business Times Weekend edition on June 21, 2008.