Flight Centre Travel Group (FCTG) reported that total transaction value (TTV) from its corporate travel business nearly doubled year over year during the 2023 fiscal year. For the year ending June 30, corporate TTV rose to $7.1 billion, with records achieved in all geographic regions.
These results, according to the company, were 96% above the TTV in the 2022 fiscal year and 25% above 2019 levels, which was the previous record for the group’s corporate travel sector, consisting of FCTG’s large-market-focused FCM division and its SME-focused Corporate Traveler division.
The group’s corporate transaction volumes also surpassed 2019 levels, which it attributed to “high customer retention rates and a large pipeline of global account wins for both FCM and Corporate Traveler.” New accounts contracted for FCM totaled $1 billion in annual spending and largely moved to FCM from another travel management company, while most of Corporate Traveler’s new accounts were previously unmanaged programs, according to the group.
The company said it has incurred “significant upfront costs” related to its customer growth, including adding about 1,000 new sales and support staff across the corporate segment through the fiscal year.
Spend per client, according to the company, remains below 2019 levels, which the company said it expected to continue “in the near term as customers maintain their cost reduction focus.” The group still expects corporate TTV to continue to grow year over year in the 2024 fiscal year with new client wins.
The Americas became the largest region for Flight Centre’s corporate business in terms of TTV in the 2023 fiscal year, representing 31% of the total, slightly above Australia/New Zealand’s 30% share. Europe, the Middle East and Africa represented 28% of TTV for the fiscal year, and Asia made up the remaining 11%.
Flight Centre’s corporate segment reported a $123 million EBITDA (earnings before interest, taxes, depreciation and amortization) for the fiscal year, up from $3.9 million the previous year.
