Flight Centre Travel Group Records Strong Start to the Fiscal Year at Annual General Meeting
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 Corporate CEO, Flight Centre Travel Group:
“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.”
For the full ASX announcement, please CLICK HERE.
Comments by Melissa Elf, Flight Centre Corporate ANZ MD/FCM Global COO:
“Corporate travel continues its upward trajectory for our flagship brands in and out of Australia with both large businesses and small-to-medium sized enterprises taking advantage of the increased airline capacity at home and overseas with meetings, events, and conferences remaining a priority.
“FCM and Corporate Traveller have both enjoyed strong wins to start the fiscal year as we continue to gain market share across multiple sectors – with Stage and Screen solidifying its position as the market leader within their specialised travel segments.
“We have seen an 11 per cent increase in corporate travel bookings for the first four months of the financial year versus 2022 with Mining/Oil/Gas, Government/NFP, and Services leading the way in the industries most travelled between July and October.
“The golden triangle of Sydney, Melbourne, and Brisbane has also gone from strength to strength during that time with Melbourne to Sydney bookings up 8.5 per cent, Brisbane to Sydney seeing an increase of 8.1 per cent, and Brisbane to Melbourne up just over 10 per cent.
“US-based bank Morgan Stanley surveyed 135 corporate travel managers from organisations around the world who collectively account for USD$8 billion in annual global travel spend – with corporate travel managers expecting their organisations' travel budgets in 2024 to grow by an average of around eight per cent year-on-year.
“It will be very interesting to see how the traditionally ‘quieter’ periods of December and January for corporate travellers will pan out this year, with the ever-increasing drive towards extended ‘bleisure’ stays and the desire for in-person Christmas functions roaring back.”