FCTG off to an impressive start in 2024

Flight Centre Travel Group (FCTG) held its Annual General Meeting recently and issued the following business update to the Australian Securities Exchange.

In its update, FCTG reported:

• $6 billion in first quarter (1Q) Total Transaction Value (TTV) – its second strongest start to a year and with corporate TTV again at record levels
• 1Q TTV increased about 20% – or more than AUD$900 million compared to the same period last year – to AUD$6 billion, just below the record circa AUD$6.2 billion result it delivered four years ago
• 1Q corporate TTV exceeded AUD$3.1 billion, another record, as it continued to outpace the broader sector’s recovery, with activity across the industry globally reaching 72% 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 its 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.

Commenting on the results, Chris Lynes, managing director of Canada, Flight Centre Travel Group, said: “We’ve experienced unprecedented success in the first quarter (July-Sept 2023), of FY24 at the Flight Centre Travel Group, with an incredible increase in profits compared to the same period last year.”

Lynes pointed out that: “This growth is undeniable proof of our resilience, vision, and dominant position within the Canadian corporate travel sector, particularly among startups and mid-sized enterprises (SMEs).”

And he continued: “No surprise here; Canada’s vibrant and dynamic business ecosystem consistently ranks among the world’s best markets for SMEs, a fact that has contributed to our soaring profits.”

Lynes also noted that “with new data from Morgan Stanley confirming the continued growth of the corporate travel sector, we have every reason to be confident in our future in Canada.”

FCTG’s managing director of Canada said that: “Toronto, Vancouver, and Calgary remain the top destinations for domestic corporate travellers, while international travel has seen an uptick in popularity for U.S. destinations like Las Vegas, Chicago, and New York City. Indeed, our nation’s business borders are growing ever wider.”

And he concluded: “We’re off to an impressive start this first quarter of FY24, and the outlook for the remainder of the financial year is even more promising.”

Chris Galanty, global corporate CEO, Flight Centre Travel Group, observed that: “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.”

Galanty continued: “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% as an average across all markets.”

“Despite the challenging macro environment globally,” Galanty noted, “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.”

He added that: “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.”

Galanty said: “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.”

And Galanty concluded: “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.”