Tag Archives: Flight Centre Travel Group

FCM Meetings & Events appoints Henry Jones as Global Marketing Leader

FCM Meetings & Events (FCM M&E), the long-standing sector specialist and flagship division of the Flight Centre Travel Group (FCTG), has announced a global business expansion with Henry Jones stepping up as the Global Marketing Leader.

Jones is a seasoned travel marketer and has spent the last 8 years with Flight Centre Travel Group, working across multiple brands and several regions including the United Kingdom, and Canada supporting the launch of Corporate Traveller’s Melon product.

He was most recently the Head of Marketing for FCM Travel Asia based out of Singapore, and has overseen the expansion of marketing efforts into China with the launch of The FCM Platform China, launched FCM Japan and incorporated India into the region with our fantastic team on the ground.

In his new role, Jones will manage FCM M&E marketing and communications strategy including bringing the division’s product suite to market and driving the global brand strategy as FCTG invests heavily in this space.

“Meetings and Events make up a substantial part of corporate travel with the MICE market expected to grow at a compounded annual growth rate of 6.6 per cent from 2022 to 2030 to reach USD1563.3 billion”, said Henry Jones, Global Marketing Leader of FCM M&E.

“Henry is an example of our ‘Brightness of Future’ at FCTG, where every team member is encouraged to develop their career progression. We believe the meetings, events, conferences, and event travel markets are ripe for disruption worldwide and have invested heavily in technology and people. This ensures we have best-in-class technology and people to service the meetings and events industry.”

“By leveraging our global network, we are confident in delivering exceptional meetings and events experiences that captivate audiences, shaping the future of business gatherings worldwide. We know we have an incredible opportunity to grow and position ourselves as the travel management company of choice for meetings, events, and event travel”, said Simone Seiler, Global General Manager, FCM M&E.

 

Flight Centre Travel records PBT of AUD 320mn for FY24

Flight Centre Travel Group (FCTG) has issued its full year results for FY24 to the Australian Securities Exchange.

Flight Centre Travel Group has delivered an AUD 320 million underlying PBT for 2024 fiscal year (FY24) – the result is a 131 per cent increase on the AUD 139 million FY23, and is at the mid-point of FLT’s guidance range.

Total Transaction Value (TTV) reached a record AUD 23.74 billion, slightly above the AUD 23.7 billion FY19 result and a circa AUD 1.8 billion year on year increase, with both corporate and leisure businesses delivering more than AUD 1 billion year on year growth, and corporate achieving another record.

FLT’s global corporate business delivered a 44 per cent underlying PBT increase to AUD 211 million, with Corporate Traveller contributing a record profit.

Corporate TTV increased by 10 per cent to a record AUD 12.1 billion, as the business finished the year about 35 per cent larger than FY19 in a sector that has only recovered to circa 80 per cent of the pre-pandemic activity levels (Source: MIDT).

Bertrand Saillet, Asia Managing Director, FCM Travel, said, “FY24 was a record-breaking year for FCM Travel in Asia, in both TTV and profit levels, driven by strong performance across Southeast Asia and India. Southeast Asia’s consolidated partnerships with our airline partners have yielded greater productivity”.

“FCM Meetings & Events India experienced significant double-digit growth, marked by consistent market share and profitability increases.

“They were also awarded India’s Top 100 Great Mid-size Workplaces 2024 and the Best in Professional Services by Great Places to Work. We believe that our employees are our greatest asset, and this recognition reaffirms our commitment to creating a strong ecosystem for everyone to thrive.

Our “glocal” capabilities have continued to ensure our success in North Asia. Investing in the corporate-specific AI Centre of Excellence for productive operations has led to substantial growth in profitability through digital transformation in Greater China.

“Corporate travel continues to be a critical facet for businesses as they look to survive, thrive, and grow at home and abroad. There’s no question that businesses see travel as a non-discretionary spend.

“FY25 looks encouraging with strong customer wins and a high customer retention rate. As business travel is projected to increase, we’re strategically expanding into new markets. We’ve invested in having the best-in-class technology and people to serve the business travel and MICE industry.”

Chris Galanty, Global Corporate CEO, Flight Centre Travel Group, added, “It’s been a robust year for the corporate pillar of the Flight Centre Travel Group with our flagship brands of Corporate Traveller and FCM Travel delivering record Total Transaction Value in a sector that has only recovered to circa 80 per cent of pre-COVID transaction volumes.

“This result has been driven by high customer retention rates and a large pipeline of new account wins, some of which have yet to be fully implemented, so we’ll see the benefits of these flow over the coming months once they begin trading.

“FCM Travel transaction volumes rose by 10 per cent year on year as the business continues to win and service large multi-national and enterprise-level accounts, while Corporate Traveller delivered a record profit globally, alongside winning managed and unmanaged SME and start-up accounts.

“Our blend of exceptional people and innovative technology continues to set us apart with both dedicated travel consultants and managers joining forces with the mass adoption of Corporate Traveller’s Melon online booking tool in the Northern Hemisphere and FCM Platform globally.

“We’ve continued to invest, and this year saw us launch our global corporate-specific AI Centre of Excellence that’s revolutionising customer service, empowering our agents through smart automation, and is a key driver as we remain on track to deliver our Productive Operations project.

“We’ve also spent a lot of time in understanding the pain points of our customers and we’ve made significant investments to solve these problems – this has since allowed us to generate new revenue streams – meaning that we ultimately stay ahead of the curve.

“We’ve done an excellent job in building a solid foundation of stability, and as recent global industry-wide issues have proved, it always pays to have a travel management company on your side.

“The corporate arm of the Flight Centre Travel Group is a materially larger business than pre-COVID and we’re energised by the progress we’ve made in the Grow to Win space – and will continue to make – in productive operations in Flight Centre Travel Group’s journey to becoming a two per cent margin business.”

Transfers operator talixo inks deal with Flight Centre Travel Group for business travel

Global transfers operator, talixo, has signed of a worldwide partnership to provide pre-booked ground transfers for Flight Centre Travel Group’s flagship corporate travel businesses.

The agreement expands on talixo’s existing relationship with the global Brisbane-based travel agency group, which encompasses pre-booked transfers for their leisure travel division and UK corporate travel branches.

Now, consultants worldwide working for Flight Centre Travel Group’s business travel brands, including FCM Travel and Corporate Traveller, will be able to offer competitive, reliable airport transfers and point-to-point rides in 1,100+ cities and 130+ countries globally, pre-bookable via their GDS.

Despite providing essential connectivity, transfers remain an overlooked part of the business travel experience, with corporates often working with a limited number of local operators in key office locations, or leaving team members to make their own arrangements, with little or no oversight or control.

And, while the business travel community is increasingly looking to public transportation as part of their sustainability and carbon reduction strategies, these options can be limited, time-consuming and unreliable, especially in destinations lacking sophisticated transport infrastructure.

Jens Luik, Head of Global Sales, talixo, commented, “Business travellers want to know that no matter where they travel, they have access to safe, reliable transportation. As the leading global operator of pre-booked ground transfers, our local and tech-enabled fleet operation allows us to deliver consistent, high-quality ride experiences on a global scale.”

This gives travel management partners the confidence to provide their corporate clients with a value-adding end-to-end offering that brings first-mile-last-mile costs under control. This is an area where Flight Centre Travel Group, in particular, excels, and we’re delighted to be expanding our partnership to enhance their offering to corporate clients and their business travellers.”

Mandy Dunbier, Global Supply Partnerships Manager at Flight Centre Travel Group, added, “Business trips don’t start or end at the airport or train station. Providing a true end-to-end service not only gives our corporate clients confidence that their travellers are receiving the best in duty of care, but it also makes their journeys easier and less stressful, which in turn drives greater policy compliance, visibility, and cost control.

Our partnership with talixo gives our branches and regional partners access to competitive, quality standard car services, perfect for day-to-day rides and transfers where premium limousine services wouldn’t be appropriate. Combined with talixo’s extensive geographic coverage and globally standardised experience, it reinforces our best-in-market end-to-end offering to clients worldwide.”

 

FCTG sets up ‘AI Centre for Excellence’ with Adrian Lopez as Head

Flight Centre Travel Group (FCTG) has established an ‘AI Centre of Excellence,’ a new global division that will focus on promoting, adopting, and integrating artificial intelligence technologies into the company’s corporate divisions.

The ‘AI Centre of Excellence’ will strategically harness the power of AI to revolutionise FCTG’s flagship business travel divisions Corporate Traveller and FCM, by enriching customer experiences, boosting employee productivity and more.

As part of the launch, Adrian Lopez will step into a newly created role as Head of AI for Corporate, where he will lead a dedicated team of technical experts responsible for laying out the shared corporate vision for AI within the organisation. He most recently served as Global Chief Technology Officer for FCM Digital.

Adrian and his team will set the overall AI strategy for FCTG’s corporate brands and ensure the company is maximising the potential around generative AI, while doing so effectively, responsibly, and in alignment with its business objectives.

The specialised team will implement best practices and provide research, support, and training around AI, with a focus on improving efficiency and driving value to new and existing clients. They will look to find ways to seamlessly integrate the technology into the operations of the company’s business travel divisions Corporate Traveller and FCM.

“In today’s ever-changing digital world, we recognise the tremendous potential with AI and ways it can transform our work,” said John Morhous, Global Chief Experience Officer, FCTG’s Corporate Brands.

“As we continue to evolve and grow as a business, we’re thrilled for the opportunity to open this new ‘AI Centre of Excellence,’ as well as appoint Adrian into this new leadership role. With his expertise, deep insights, and proven track record in technology innovation, Adrian will be integral to our success in this space, both today and in the years ahead.”

With the debut of the ‘AI Centre of Excellence,’ FCTG will aim to strengthen the relationship between the human workforce and hands-on AI applications. The incredible automation and machine learning that AI offers will prove to be a perfect complement to the personal touch and natural intuition of the human mind.

Furthermore, FCTG will leverage AI to enhance productivity and improve workflow optimisation, allowing its teams to focus on priority initiatives and more creative-driven projects.

“I’m beyond excited for this next chapter in my career with FCTG and to further push the boundaries of technology in travel,” said Lopez.

“The disruptive benefits of AI will enable us to work more efficiently, identify new ways to service our clients, and reach the next generation of business travellers. The launch of the ‘AI Centre of Excellence’ is another significant step and milestone to add to the company’s already decorated history of innovation.”

A travel technology pioneer, Lopez has over a decade of industry experience. In 2014, he co-founded the corporate travel tool SAM, a mobile AI-powered app that operates as a 24/7 virtual travel assistant, helping business travellers easily manage their trips.

FCTG made an initial investment in Sam in 2017, which was followed by a full acquisition in 2019. After the ownership transition, Lopez officially joined the FCTG team, where he has helped oversee the integration of Sam’s capabilities across various corporate travel products, while also leading the development of the new FCM Platform.

Located in Greece, Lopez will report into U.S.-based Morhous, with his role effective immediately.

 

FCM Travel appoints Sunny Sodhi as Managing Director for India

FCM, the flagship large corporate division of the Flight Centre Travel Group (FCTG), has appointed Sunny Sodhi as the Managing Director of FCM Travel India.

Sodhi has spent more than 26 years in the travel and hospitality industry. He is a seasoned professional with experience establishing businesses and delivering accelerated growth.

Previously at OYO, Sodhi was the COO for Luxury and Upscale Business and the Head of Sales for India and Southeast Asia. Before OYO, he was the COO for Yatra for Business (Corporate Travel), a vertical he established from the ground up. He was also the Head of Industry Relations for Yatra.com.

Sodhi has had successful stints at HRG and CWT India in business, sales, and client management roles. He also actively supports the start-up ecosystem in the country.

“India is a vital market for FCM in Asia, and we have been making strategic investments over the last two years in both our people and technology, which have led to strong performances in both corporate travel as well as FCM Meetings & Events.”

“We believe that Sunny, with his extensive experience in corporate travel, technology, and his added focus on people, will take FCM Travel India to greater heights,” said Bertrand Saillet, Managing Director, FCM Travel Asia.
“FCM’s impeccable record in customer servicing and industry-best client retention rates are unparalleled. With the Indian business travel segment poised to grow in double digits over the next 5-6 years, FCM is well positioned to capture this growth phase with cutting-edge technology and well-established thought leadership.”

“I look forward to leveraging my experience in consistently delivering innovative technology-backed business solutions and developing a suite of robust non-air products contributing to consistent and robust growth. I am super stoked to be embarking on this rocket ship with an amazing set of people,” said Sodhi.

 

Air capacity to soar in Q1, 2024: FCM Consulting Global Quarterly Trend Report

Q3-2023 continued the trend from H1-2023, signalling a levelling of the rapid travel growth that started late 2021, and whilst travel demand was growing and positive, the increases have moderated for a third quarter, according to FCM Consulting’s latest Global Quarterly Trend Report.

The key outtake showed that Q1-2024 is forecast to have +71.8 million (+5.3 per cent) more seats (both domestically and internationally) than in 2019, for the same period. The final 2023 seat capacity is forecast to be -2.2 per cent down in 2019.

When we look at air seat growth regionally Africa leads the way with a predicted increase of 14 per cent, followed by the Middle East (up 11 per cent), Latin America (eight per cent increase), North America (up eight per cent), Asia (seven per cent rise), Australasia (flat), and Europe down two per cent.

One of the biggest impediments to recovery so far has been a lack of airline capacity and competition. Conditions are gradually improving, which is expected to benefit travellers as the year progresses, but the concern remains regarding the lack of available seats on services between Australia and Europe, via the Middle East.

As reported by IATA in August 2023, global Passenger Load Factors (PLF) were at 84.6 per cent, with domestic PLF sitting at 83.5 per cent, and international PLF reporting 85.4 per cent.

Domestic PLF across major markets was led by the USA at 84.5 per cent, followed by India (83.9 per cent), Brazil at 83.1 per cent, Japan (82.5 per cent), and Australia at 82.3 per cent. International PLF was led by North America at 87.7 per cent, as the highest performing region compared to the lowest, Africa at 76.2 per cent.

Regarding accommodation, hotel occupancy levels averaged 68^ per cent per month in 2023. Over the past six months corporate average room rates (ARR) have plateaued, signalling rate stability. YTD-2023* ARR compared to 2022 in North America was USD$250, Australia/New Zealand USD$160, Europe USD 194, Asia USD 173, Middle East/Africa USD$203, and Latin America USD 128.

Regarding car hire, the global average daily rate (ADR) has increased by four per cent YTD**-2023 versus 2022. The ADR forecast is rate increases will stabilise to +2-3 per cent in 2024.

This FCM Consulting quarterly report draws on global data sourced from FCM and Flight Centre Travel Group corporate booking data, for travel from July to September 2023 (Q3-2023). The report uses Cirium aviation schedule data as of 23 October 2023. Airfare pricing variations exclude all taxes.

The hotel average room rate (ARR) quoted is the average booked rate using FCM and Flight Centre Travel Group corporate booking data. Variations in rates booked reflect seasonality, supply and demand, booking lead times and variations in exchange rates.

Unless otherwise stated all fares and rates are reported in US dollars. STR hotel data and content were quoted as of 26 October 2023 for the period ending September 2023.