During Flight Centre Travel Group’s Annual General Meeting, the Australian Securities Exchange received several significant business updates. The company’s Total Transaction Value (TTV) for the first quarter (1Q) was AUD 6 billion, marking its second-strongest start to the year. Corporate TTV was also at record levels. TTV climbed by over 20% in the first quarter of this year, or over AUD 900 million, to AUD 6 billion, which is just less than the record AUDD 6.2 billion that we achieved four years prior.
Based on MIDT data for 1Q FY23 as a percentage of 1Q FY19, the company’s corporate TTV for the quarter exceeded AUD 3.1 billion, setting a new record. During the same period, industry activity worldwide reached 72% of pre-COVID levels. This year, FCM has secured new, contracted clients with estimated annual spending of over AUD 565 million, continuing the organic growth that has propelled the company’s swift recovery thus far.
“Asia has continued to show a double-digit recovery for the first quarter of FY24 in corporate travel,” stated Bertrand Saillet, Managing Director, FCM Asia. India and Southeast Asia performed well, maintaining their increases in profits and market share.
“North Asia broke even despite difficulties in China and Japan, and we anticipate more strengthening for the remainder of the year.
“We continue to observe significant resilience in the small-to-medium sized firm sector in Asia, which has contributed to an improvement in margin. Our retention rates, which stand at 98%, are also quite good.
“In important areas, the use of our new technology, FCM Platform, has expanded self-service capabilities. We have been successful in gaining new clients in the area thanks to our well-timed technology investments.
“The corporate division of the Flight Centre Travel Group (ASX:FLT), which 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 totaling circa AUD 900 million,” said Chris Galanty, Global Corporate CEO, Flight Centre Travel Group.
“One of the many reasons we saw a particularly strong end to the month of October was that FCM was able to secure some strong wins in both North America and the United Kingdom and Asia.” As an average across all markets, we observe that the corporate travel market has returned to about 70%.
“FCM and Corporate Traveller continue to grow their market share and acquire new clients while holding onto their loyal customer bases, even in the face of a difficult macroenvironment globally. Particularly in the United States and Canada, the market for small-to-medium sized enterprises is robust.
Our investments in Melon (the US and UK) and FCM Platform, our digital platforms, have also seen strong growth, and they are beginning to yield positive returns.
“By the end of the fiscal year, all of our current clients will likewise have been transferred, and all new FCM customers have been successfully integrated on the new Platform. Melon, a corporate travel company, is likewise growing, with over 90% of new American clients being integrated.
Without a doubt, our new digital platforms are and will be our main differentiators in attracting new clients. This really sets us apart—our strong people-first philosophy along with our thus far effective technological investments.
Source- Hindustan times