Total Transaction Value (TTV) for corporate business increased by 10 pc to a record AUD 12.1 billion
Australian travel agency Flight Centre Travel Group has delivered a AUD 320 million (USD 217 million) underlying profit before tax (PBT) for Fiscal Year 2024, that ended on June 30, a spike of 131 pc on the AUD 139 million PBT registered in FY23.
In a press statement, FCTG says the Total Transaction Value (TTV) in the year reached a record AUD 23.74 billion, slightly above the AUD 23.7 billion FY19 result and about AUD 1.8 billion year on year increase, with both corporate and leisure businesses delivering more than AUD 1 billion year-on-year growth and corporate achieving another record.
Bertrand Saillet
“FY24 was a record-breaking year for FCM Travel in Asia, in both TTV and profit levels, driven by strong performance across Southeast Asia and India. Southeast Asia’s consolidated partnerships with our airline partners have yielded greater productivity. FCM Meetings & Events India experienced significant double-digit growth, marked by consistent market share and profitability increases,” says Bertrand Saillet, Asia Managing Director, FCM Travel.
“They were also awarded India’s Top 100 Great Mid-size Workplaces 2024 and the Best in Professional Services by Great Places to Work. We believe that our employees are our greatest asset, and this recognition reaffirms our commitment to creating a strong ecosystem for everyone to thrive,” he adds.
The company’s global corporate business delivered a 44 pc underlying PBT increase to AUD 211 million, with Corporate Traveller contributing a record profit.
The statement adds that Total Transaction Value (TTV) for corporate business increased by 10 pc to a record AUD 12.1 billion, as the business finished the year about 35 pc larger than FY19 in a sector that has only recovered to about 80 pc of the pre-pandemic activity levels.
“Our ‘glocal’ capabilities have continued to ensure our success in North Asia. Investing in the corporate-specific AI Centre of Excellence for productive operations has led to substantial growth in profitability through digital transformation in Greater China. Corporate travel continues to be a critical facet for businesses as they look to survive, thrive, and grow at home and abroad. There is no question that businesses see travel as a non-discretionary spend,” Saillet says.
“FY25 looks encouraging with strong customer wins and a high customer retention rate. As business travel is projected to increase, we are strategically expanding into new markets. We have invested in having the best-in-class technology and people to serve the business travel and MICE industry,” he adds.
Chris Galanty
“It has 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 pc of pre-Covid transaction volumes,” says Chris Galanty, Global Corporate CEO, Flight Centre Travel Group.
“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 pc 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,” says Galanty.
“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 Traveller’s Melon online booking tool in the Northern Hemisphere and FCM Platform globally,” he adds.
“We have continued to invest, and this year saw us launch our global corporate-specific AI Centre of Excellence that’s revolutionising 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 have also spent a lot of time in understanding the pain points of our customers and we have 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,” Galanty adds.
“We have 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 are energised 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 2 pc margin business,” he adds.
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