FCM Targets a 50% Business Recovery by Year End

FCM, one of the world’s largest travel management companies, expects a significant rebound in its global corporate travel business by year-end as activity increases and as it starts to see stronger returns on the multi-million dollar investments in it has made in its offerings during the pandemic.

The business, which operates in more than 95 countries, believes sales will continue to increase globally and is targeting 50 per cent of pre-COVID levels by the end of the year. With vaccination programmes well underway in key markets, and gaining momentum globally, and as consumer confidence increases, the corporate business’s profitability remains on track to return late in 2021, as the company has previously forecast.

At the end of April, Flight Centre Travel Group’s corporate business, of which FCM is the flagship multinational focused division, was trading at 29 per cent of prior year levels globally, but had developed a strong organic growth profile, fuelled by a combination of high customer retention rates and record new account wins during the pandemic. Recent wins have included large and high-profile accounts, such as Procter & Gamble and Atos.

Marcus Eklund, FCM Global Managing Director, said: “Based on early signs that vaccines are effective in preventing symptomatic infection, and with healthy vaccine rollout rates in key markets such as the Australia, New Zealand, the US and UK, we expect health risks to reduce. In the absence of disruptions such as new strains, this should lead to an easing of government-imposed restrictions on domestic and international travel, and a partial rebound of the global business travel market by year end. Based on our experiences, travel immediately rises by 20-30 per cent when restrictions are relaxed. A healthier rebound will occur if international borders remain open.”

FCM’s diverse customer base is playing a key role in future growth, with recent focus groups indicating high levels of pent-up demand.  

Eklund said: “The mining, construction, pharma, energy and resources, FMCG manufacturing industries and their associated supply chains, together with governments and other growth companies, were responsible for most business travel activity during 2020.  They will also drive early growth in travel activity this year, as their C-suite, customer-facing and sales executives recommence their traditional customer and team engagement.

“Confidence in business travel will fundamentally change as a result of consolidation and structural changes in the market. It is essential for the corporate travel industry to be highly adaptable to rapid change. It must also offer a greater number of services in health, safety and customer communication, and expedite their delivery, to remain relevant in this environment. These are the areas we have focused on and invested heavily in for the benefit of our customers during the pandemic and during the recovery phase.

Ciarán Kelly, FCM Managing Director, Middle East and Africa Network added:

Saudi Arabia and the UK are two key markets for us in the region and with these borders opening, at this stage, in the next few weeks we are expecting a surge in customer demand. We have maintained close contact with our customer base and while a handful have put travel on hold this year, the vast majority are looking forward to resuming travel to their key markets as soon as possible.

 

The last 12 months have been constant from new customers reviewing their travel program and approaching us for a holistic solution coupled with on the ground consultant support and technical support.  We are currently at 30% of pre-Covid volumes, and so alongside the new clients we have won, the UAE  vaccination drive and trials with passport vaccination app, we do expect to finish 2021 at 50% business recovery.