By Bev Fearis, published 19/08/20
Flight Centre Travel Group is reporting a record amount of new accounts for its corporate business despite the challenging period for the travel industry.
Giving a financial update, the travel giant said its corporate side, which includes FCM, Corporate Traveller, Stage & Screen, Flight Centre Business Travel and cievents, has fuelled the company’s revenue generation during Covid-19 lockdowns when essential services have generally been permitted to travel.
It said FCM alone secured new accounts with an annualised spend of $1.3 billion during the 2020 financial year, with most of these wins coming in January to June during the height of the pandemic.
“Covid-19 and, specifically, the government responses to it have clearly had devastating impacts on businesses worldwide and on the airline, travel, tourism and hospitality industries in particular. This has severely impacted us and our people, and some very tough decisions have been made over the past four and five months,” said FCTG’s Managing Director Graham Turner.
“Despite ongoing restrictions, revenue has now started to increase, particularly in Europe, and we have surpassed our initial cash flow target, thereby extending our liquidity runway.
“We have also continued to win a record amount of new corporate accounts while generating an underlying corporate profit during FY20. This highlights both our corporate business’s resilience and its strong future growth prospects in this large, global travel sector,” added Turner