Flight Centre Travel Group has reported a 10% year-over-year increase in total transaction value for its global corporate business in the 2024 fiscal year, ending June 30, driven significantly by wins among SMEs.
The company’s corporate business, which includes SME-focused Corporate Traveler and large-market-focused FCM, reported a total transaction value of approximately $8.2 billion, marking a 35% growth compared to pre-Covid levels in 2019, despite corporate travel recovery lagging at around 80% of pre-pandemic levels according to Amadeus market data.
The group noted that during the fiscal year, Corporate Traveler and FCM added clients with a combined annual spend of $1.4 billion, with a notable increase in SME wins for Corporate Traveler compared to previous years. In the U.S., SME client acquisitions nearly doubled in the second half of the year, bolstered by a new regional structure featuring key centres in New York, Chicago, and Los Angeles.
“This regional structure has enabled us to better identify new opportunities nationwide and accelerate growth in our best-performing sectors,” said Charlene Leiss, President of Flight Centre Americas. “We are seeing exciting potential across the SME market in various industries, including pharmaceuticals, life sciences, finance and banking, technology, sports and entertainment, and more.”
Globally, Flight Centre’s corporate business transactions rose 11% year over year, with corporate revenue increasing 13.7% to $750 million. FCM reported a 10% increase in transaction volumes, while Corporate Traveler achieved record global profits, according to Flight Centre Global Corporate CEO Chris Galanty.
Despite a “flat trading climate” in corporate travel during the latter part of the fiscal year and minimal growth in airfare sales, corporate travel transaction volumes globally saw an 11% year-over-year increase in July. Flight Centre’s managing director, Graham Turner, told Business Matters the company’s leaner operations, with a 5% reduction in staff numbers for corporate businesses as of June 30, thanks to “strong productivity gains and the mass adoption” of FCM Platform and Corporate Traveler’s Melon. Turner also noted improved staff retention amid these changes.
Flight Centre’s corporate businesses reported a pre-tax profit of $143 million for the fiscal year, up from $99 million in the previous year, reflecting the group’s strategic focus on capturing SME market share and optimising operations through technology-driven efficiencies.
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Flight Centre makes gains with SMEs, boosting corporate growth