Flight Centre Travel Group AGM 2023
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 Charlene Leiss, President of the Americas, Flight Centre Travel Group:
“The growth we’ve seen in the travel industry in the first quarter of the fiscal year has been strong, on both the corporate and leisure side of the business. There has been a strong resurgence in the U.S. as travelers have returned in a big way throughout the country.”
“Even in uncertain economic times and with the recent rise in geopolitical issues, our flagship business travel divisions FCM and Corporate Traveler, continue to thrive, winning new business and growing market share, while driving value for their existing customers as well. The small-to-medium sized enterprise market in the U.S., one of the fastest-growing segments within the industry, has particularly been strong of late.”
“To coincide with the return of normal business operations over the last year, we have strategically expanded our footprint and strengthened our sales, customers success, and operational teams, especially in the East, Midwest, and West regions. Corporate Traveler revealed that Boston, New York, Los Angeles, London, and Chicago have been the top destinations for travelers, while the industries spending the most on travel have been pharmaceutical, finance/banking, charity/non-profit, biotechnology, and technology.
“We are again leading the way in the technology space and our increased focus on innovation has been integral to our continued success. Our new digital platforms, Melon and FCM Platform, have helped us revolutionize the business, while allowing us to optimize efficiency and accelerate overall growth. Furthermore, we have seen online customer adoption with both platforms significantly increase over the last year, with more than 90 per cent of new customers in the U.S. integrated.”
“Going forward, we will be identifying new technology-driven opportunities, such as various AI-focused initiatives, that will help us further transform the customer experience and stay ahead of the competition. We are looking forward to another exciting year ahead.”
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 Traveler, has achieved record-breaking Total Transaction Value (TTV) for the first quarter of FY24 with year-to-date wins totaling 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 Traveler 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 Traveler’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.”
