Flight Center Travel Group chief executive Graham Turner told the company's recent annual meeting that the group's corporate brands saw strong trading volumes in the first quarter of its financial year, despite “flatline performance in global markets” Still an increase of 3%.
Turner said the growth was driven by customer wins, which totaled $350 million in annual spend between July and October for Flight Centre's FCM brand. The group's corporate traveler brand, which focuses on small and medium-sized customers, “also continues to see a lot of wins”, although it's difficult to put specific numbers on it because smaller customers “are not bound by contracts and often don't have the strict enforcement to ensure all travel It’s all policy to book through their preferred provider,” he said.
Turner noted that Flight Center's corporate brands have grown to become the group's largest division in terms of total deal value, with FCM being the group's largest global brand, generating 31% of deal value. TTV for fiscal year 2024As of June 30. In fiscal 2019, it accounted for 20% of the group's TTV.
The group's customer retention and growth strategy “recovered the business to around 135% of pre-COVID levels by the end of 2019″ [the 2024 fiscal year]has made no major acquisitions and is well ahead of the overall industry rebound, which is expected to be about 80% of pre-COVID activity by the end of the year,” Turner said.
Turner said there had been “ticket deflation” across the group in recent months, with average international tickets sold through Australia's global distribution system falling 9 per cent in the first quarter of the financial year compared with the same period last year. He said that while this reduced revenue, it was ultimately “very positive” for the business.
“They started to stimulate sales, Australian international ticket sales increased by 15 per cent in the first quarter and that growth rate remained unchanged in October,” Turner said.
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