Flight Centre Travel Group has announced a 10% year-on-year increase in the total transaction value of its global business in the 2024 financial year ended June 30, driven largely by wins among small and medium-sized enterprises.
The company’s corporate business, which includes SME and FCM travellers focused on large markets, recorded a total transaction value of around $8.2 billion, representing a 35% growth compared to pre-Covid levels in 2019, despite corporate travel lagging behind by around 80% from pre-pandemic levels according to Amadeus Marketplace data.
The group noted that during the fiscal year, Corporate Traveler and FCM acquired new customers with a total annual spend of $1.4 billion, with a significant increase in the number of small and medium-sized businesses acquired by Corporate Traveler compared to previous years. In the United States, SME customer acquisitions nearly doubled in the second half of the year, supported by a new regional structure with major hubs in New York, Chicago and Los Angeles.
“This regional structure has enabled us to better identify new opportunities nationwide and accelerate growth in our top-performing sectors,” said Charlene Liss, president of the Center for Aviation America. “We see exciting potential in the SME market across industries including pharmaceuticals, life sciences, finance and banking, technology, sports and entertainment, and more.”
Globally, Flight Centre’s business transactions increased 11% year-on-year, with the company’s revenue increasing 13.7% to $750 million. FCM reported a 10% increase in transaction volumes, while Corporate Traveler Flight Centre Global Corporate has posted record global profits, according to Flight Centre Global Corporate CEO Chris Galanti.
Despite a “flat trading environment” in corporate travel during the latter part of the financial year and muted growth in airline ticket sales, global corporate travel transaction volumes increased 11% year-on-year in July. Flight Centre managing director Graham Turner told Business Matters that the company’s operations had become leaner, with a 5% reduction in corporate headcount as of June 30, thanks to “strong productivity gains and mass adoption” of Corporate Traveler’s FCM and Melon platforms. Turner also noted that staff retention had improved amid these changes.
Flight Centre’s commercial business reported a pre-tax profit of US$143 million for the financial year, compared to US$99 million in the previous year, reflecting the group’s strategic focus on capturing SME market share and improving operations through technology-driven efficiencies.