Home » Australia Travel News » Flight Centre Hits New High with AU$23.74 Billion Total Transaction Value and AU$320 Million Profit in Fiscal Year 2024
Wednesday, August 28, 2024
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Flight Centre Travel Group (FLT) has reported a robust underlying profit before tax (PBT) of AU$320 million for the 2024 fiscal year (FY24), marking a remarkable 131% surge compared to the AU$139 million recorded in FY23. This impressive outcome aligns with the mid-point of FLT’s forecasted guidance range, highlighting the company’s successful performance over the past year.
The Total Transaction Value (TTV) also hit an all-time high, reaching AU$23.74 billion. This figure slightly surpasses the AU$23.7 billion achieved in FY19 and represents an approximate year-on-year increase of AU$1.8 billion. Both the corporate and leisure sectors of FLT played pivotal roles in this growth, each contributing over AU$1 billion in additional revenue compared to the previous year. The corporate segment, in particular, achieved another record, underlining its critical role in the company’s overall success.
FLT’s global corporate division saw a significant boost, with a 44% increase in underlying PBT, reaching AU$211 million. Corporate Traveller, one of FLT’s key corporate travel brands, also delivered a record profit, underscoring its strength and market position.
Corporate TTV rose by 10% to a record AU$12.1 billion, with the corporate business now standing approximately 35% larger than in FY19. This growth comes despite the broader sector recovering to only around 80% of its pre-pandemic activity levels, according to data from MIDT.
These achievements reflect FLT’s strategic efforts to capitalize on the post-pandemic travel rebound, positioning itself strongly within the global travel industry.
Charlene Leiss, The Americas President, Flight Centre Travel Group, “It’s been another exciting year for Flight Centre Travel Group in the United States, with our corporate and leisure businesses experiencing tremendous growth and delivering increased revenue that has allowed us to significantly expand our footprint and grow our market share across the country.”
“Throughout the last year, we have taken important steps in our flagship business travel divisions Corporate Traveler and FCM Travel that have enabled us to fast-track our expansion in the Americas and ensure we are charting a path forward. We have secured key accounts, while prioritizing and deepening our connection with our existing clients. In the ever-changing business travel world, our ability to adapt and meet the needs of today’s business traveler has been paramount to our continued success.”
“With Corporate Traveler, we started to strengthen our sales, customer success, and operational teams in our new East, Central, and West hubs, located around New York/Boston, Chicago, and Southern California respectively. This new regionalized and streamlined approach that we put in place this year has allowed us to better identify new opportunities throughout the country, as well as accelerate growth in our best performing sectors. We are seeing exciting potential across the SME market in a number of different industries right now, including pharmaceutical, life sciences, finance and banking, technology, sports and entertainment, and more.”
“On the FCM side, our teams continued to service our large multi-national and enterprise-level customers by blending our extensive global reach with deep local insights. In the last year, we further enhanced our productive operations work as we remain committed to increasing efficiency and optimizing our revenue. Our plans in this space are geared towards capitalizing on the strong corporate growth opportunities in the robust U.S. market.”
“With each brand, we continue to invest in new, innovative technologies that help enrich the customer experience and drive value to new and existing clients, which has led to mass customer adoption of our revolutionary digital platforms, Corporate Traveler’s Melon and FCM Platform. Through our strategic relationship with our majority-owned TPConnects, we have strengthened our distribution technology to improve our NDC content offerings and be able to provide our customers a more personalized, dynamic, and competitive product. This past year was also highlighted by the launch of ‘AI Center of Excellence,’ a new global division that is focused on promoting and integrating artificial intelligence technologies into the operations of our business. The debut of our new AI division is just another example of the way we are further pushing the boundaries of technology in travel. Our continued advancements in technology will help set us apart and keep us at the forefront of the business travel industry for years to come.”
“As part of our leisure growth efforts this past year, we have increased the focus on our independent and luxury sectors, through our new Envoyage brand and Scott Dunn. Our new global home for independent travel agents and agencies, Envoyage will help us maximize our potential in the fast-growing independent travel space, while Scott Dunn will continue to position us to capitalize on the U.S. luxury travel market. Going forward, our diversified leisure business will also continue to serve the broader leisure market through our existing Liberty Travel wholly-owned business models of storefronts and group travel, as well as the student population globally via our Massachusetts-based Student Universe OTA.”
“We are proud of our incredible work this year and we are looking forward to even greater success in the year ahead!”
Chris Galanty, Global Corporate CEO, Flight Centre Travel Group, “It’s been a robust year for the corporate pillar of the Flight Centre Travel Group with our flagship brands of Corporate Traveller and FCM Travel delivering record Total Transaction Value in a sector that has only recovered to circa 80 per cent of pre-COVID transaction volumes. This result has been driven by high customer retention rates and a large pipeline of new account wins, some of which have yet to be fully implemented, so we’ll see the benefits of these flow over the coming months once they begin trading.”
“FCM Travel transaction volumes rose by 10 per cent year on year as the business continues to win and service large multi-national and enterprise-level accounts, while Corporate Traveller delivered a record profit globally, alongside winning managed and unmanaged SME and start-up accounts.”
“Our blend of exceptional people and innovative technology continues to set us apart with both dedicated travel consultants and managers joining forces with the mass adoption of Corporate Traveler’s Melon online booking tool in the Northern Hemisphere and FCM Platform globally. We’ve continued to invest, and this year saw us launch our global corporate-specific AI Centre of Excellence that’s revolutionizing customer service, empowering our agents through smart automation, and is a key driver as we remain on track to deliver our Productive Operations project.”
“We’ve also spent a lot of time in understanding the pain points of our customers and we’ve made significant investments to solve these problems – this has since allowed us to generate new revenue streams – meaning that we ultimately stay ahead of the curve. We’ve done an excellent job in building a solid foundation of stability, and as recent global industry-wide issues have proved, it always pays to have a travel management company on your side.”
“The corporate arm of the Flight Centre Travel Group is a materially larger business than pre-COVID and we’re energized by the progress we’ve made in the Grow to Win space – and will continue to make – in productive operations in Flight Centre Travel Group’s journey to becoming a two per cent margin business.”
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