Flight Centre Travel Group’s (ASX:FLT) Annual General Meeting has taken place and the following business update was issued to the Australian Securities Exchange.
- $6billion in first quarter (1Q) Total Transaction Value (TTV) – our second strongest start to a year and with corporate TTV again at record levels
- 1Q TTV increased about 20 per cent – or more than AUD$900million compared to the same period last year – to AUD$6billion, just below the record circa AUD$6.2billion result we delivered four years ago
- 1Q corporate TTV exceeded AUD$3.1billion, another record, as we continued to outpace the broader sector’s recovery, with activity across the industry globally reaching 72 per cent of pre-COVID levels during the period (Based on MIDT data for 1Q FY23 as a % of 1Q FY19)
- The organic growth that has fuelled our rapid recovery to date has continued with FCM securing new, contracted accounts with projected annual spends in the order of AUD$565million already this year.
Comments by Chris Galanty, Global CEO, Flight Centre Corporate:
“The corporate division of the Flight Centre Travel Group (ASX:FLT), that includes flagship businesses FCM and Corporate Traveller, has achieved record-breaking Total Transaction Value (TTV) for the first quarter of FY24 with year-to-date wins totalling circa AUD$900 million.
“FCM, in particular, has been able to secure some strong wins in both North America, United Kingdom and Asia – one of the many reasons we saw a particularly strong end to the month of October. We see the corporate travel market has recovered to circa 70 per cent as an average across all markets.
“Despite the challenging macro environment globally, FCM and Corporate Traveller continues to win new customers and grow market share – while keeping their resilient customer bases. The small-to-medium sized enterprise market in the U.S. and Canada in particular, is strong.
“We’ve also enjoyed successful growth in both our digital platforms – Melon in the U.S. and UK – and FCM Platform, with our investments in both really starting to pay off.
“All new FCM customers are now successfully implemented on the new Platform and all our existing customers will also be transferred by the end of the financial year. Corporate Traveller’s Melon is also going from strength to strength, with more than 90 per cent of new customers in the U.S. integrated.
“There’s no question our new digital platforms have, and will continue to be, key differentiators when it comes to winning new customers. With our strong people-first approach, combined with successful technological investments to date, this really sets us apart.”
Comments by Flight Centre Corporate Managing Director EMEA – Steve Norris:
“After a positive update from Flight Centre Travel Group’s (ASX:FLT) Annual General Meeting, we’re pleased to share that our corporate brands, FCM and Corporate Traveller, are continuing to flourish.
“As the world has officially opened, global business travel from the EMEA region has truly experienced a renaissance marked by resilient regrowth. We’re seeing increased globalisation and are continuing to see businesses focusing on face-to-face interactions.
“Innovations in hybrid event technology, coupled with an emphasis on personalised experiences have seen a surge. This trend has played a key role in FCM’s focus on boosting its Meetings and Events offering. We can foresee this remaining a huge growth area for the industry, both regionally and globally.
“Throughout EMEA, there has been a rise in small to medium-size businesses travelling in key growth countries. With SMEs accounting for 99* per cent of all businesses in the EU alone, FCM has successfully launched a specialised product designed to make travel as easy as possible for them. So far, we have launched this offering in countries including Ireland and France, and we have a keen interest in continuing to roll this model out throughout the region.
“Speaking of SME business travel specialists, Corporate Traveller UK has had an exceptional year. I’m very proud of the EMEA and global team, especially as they have no plans to slow down any time soon. This year Corporate Traveller UK’s Stage, Screen and Sports pillar has seen the fastest growth with an increase of over 20% in customers from the creative and entertainment industries.
“The demand for business travel throughout the region is continuing to rise. Our internal data revealed that year-on-year (01 January to 15 November 2022/2023) business travel from the UK and Ireland has increased by almost 13 per cent.
As expected, London Heathrow Airport has continued to be the preference for corporates departing from the UK – with London Gatwick and Manchester Airports remaining second and third for another period.
Looking to Europe, Amsterdam has continued to be a popular destination for those travelling for business. According to our data, New York’s JFK airport remains the preference for corporate travel outside of the EMEA region.
“The landscape of business travel has witnessed an enduring revival in the wake of evolving global conditions. Confidence in travel, both for business and leisure, is reflected among professionals to engage in face-to-face interactions, attend conferences, and cultivate relationships crucial for business growth. A trend that will only continue in years to come.”