July 15, 2024

FCM ‘deep into recovery’ with record first half

FCM and its sister TMC, Corporate Traveller, have reported a record first half for their global corporate travel business.

The Australia-based travel giant said that in the six months to the end of 2022 it has already seen total transaction value exceed pre-pandemic levels to a record AU$5 billion (€3.2 billion).

Chris Galanty, Global CEO Flight Centre Corporate, said worldwide the business is “deep into recovery” with the TMC’s performance “outpacing the broader industry”.

“This unequivocal rebound reinforces the importance clients are placing on travel as a critical driver for economic success,” he said.

“Our winning growth strategy combines Covid-period investments in new FCM and Corporate Traveller platforms, compelling customer offerings and improved distribution capabilities through our TP Connects platform.

“We’ve also concentrated on our people, prioritising recruitment, training, and development so we’re fully equipped to help clients navigate and minimise frictions in a more complex travel environment.

“This approach has given us a distinct competitive advantage and enabled our duo of category leading brands to boost market share by retaining, winning, and implementing a larger volume of business – some not yet fully reflected in our FY23 1H results.”

According to the company’s financial statement, it secured AU$1.25 billion (€800 million) in account wins during the period, 57% for FCM and 43% for Corporate Traveller, which specialises in SME accounts.

“FCM’s wins typically came from competing TMCs, while Corporate Traveller won large volumes of business from competitors, disruptors and accounts that were previously unmanaged,” the statement added.

Galanty said as the global economy remains under pressure, the outlook for corporate travel is positive.

“In the second half, we expect to benefit from further stability in global airline capacity and fares, coupled with strengthening of our regional performance, particularly in Asia where travel has recently resumed in markets like China,” he said.

“While there may be further challenges ahead, our ability to flex and adapt means our corporate business is well placed to benefit and keep pace in the year ahead.”