27 August 2020
Flight Centre Travel Group (FCTG) released its year-end results on 27th August for its 2020 Fiscal Year, which shows an optimistic future for its corporate brands despite a major downturn in the travel industry. While FCTG experienced severe losses due to unprecedented travel restrictions caused by the COVID-19 pandemic, FCM Travel Solutions has proved to be resilient. During the global shutdown, its corporate travel division led with a stellar performance to land an outstanding amount of new business and pipeline of potential opportunities, strengthening its position to fuel FCTG’s recovery.
FCM Travel Solutions, which has a presence in 97 countries, won new business globally with total projected annual spend (pre-COVID) of USD$1.3billion, cementing its position in the top three global travel management companies and increasing market share.
FCM’s new accounts include multinational and national large enterprise corporations and government agencies. Together, these wins strengthen an already diverse global customer base, which includes a solid portfolio of companies in mining, energy and construction that continued to book essential travel throughout the crisis. About 25% of FCM’s total transaction value (TTV) currently comes from government, mining/resources and health/pharma sectors.
“The ability to win significant new global clients and have such an outstanding pipeline on the horizon amid the pandemic validates the breadth and depth of our expertise. Through our sound fundamentals, we are committed to helping our customers build resiliency and operate confidently in the face of an evolving corporate travel landscape,” says Bertrand Saillet, Managing Director for Asia, FCM Travel Solutions. “Greater collaboration and trust are essentials in the next wave of corporate travel as organisations reshape and reinvent their business models. The demonstrated commitment highlights FCM as a good partner for companies in helping them to capture more value with greater confidence and consistency from facilitating seamless travel to providing greater control over data and enabling travellers to get on the road again with a peace of mind.”
Overall, FCTG’s corporate travel division saw a profit before tax of roughly AUD$65million during fiscal year 2020 and are well placed to break-even on domestic/regional volumes. It recorded strong first half growth and was on track to top $10billion in TTV before industry-wide activity slowed significantly from March.
Prior to the coronavirus outbreak, FCTG had achieved $150million in global profits (including both its corporate and leisure businesses), for the first eight months of the fiscal year. TTV had also been tracking at record levels through to February 29th, before decreasing significantly in March.
Chris Galanty, Global CEO of Flight Centre’s corporate travel business said: “We are committed to not just getting through this crisis, but to taking advantage of the post COVID market. The pandemic has caused a fundamental global dislocation of the business travel industry and we have had to make difficult decisions. However, we didn’t cut back on investing in implementation, sales, account management and solution design. We made that decision from the outset. If Flight Centre’s corporate divisions are going to come out of this successfully, we needed to keep growing. Our corporate businesses, particularly FCM Travel Solutions, have won record new business in our financial year to end June 2020. And the majority of that was won between January to June in the midst of the pandemic. To achieve this during such an incredibly challenging period is testament to our agile approach in delivering the right solutions and high levels of personal service to our corporate customers.”
About FCM Travel Solutions:
FCM Travel Solutions is one of the largest travel management companies in the world, and the flagship global business travel division of Flight Centre Travel Group. FCM’s network spans 97+ countries, employing over 6000 staff. At the heart of FCM’s business model are our highly experienced people who operate in small teams and are empowered to deliver exceptional customer service to their clients. We never use call centres. The combination of our people’s expertise, supplier relations, unrivalled negotiating strength and innovative technology solutions, has positioned FCM as a leading business travel partner for large national, multi-national and global corporations. For the last eight consecutive years FCM has been named the World's Leading Travel Management Company at the World Travel Awards.