Flight Centre’s global corporate business has seen significant growth in FY2024, driven predominantly by advances with small and midsize business (SME) clients. The company’s corporate segment, which includes SME-focused Corporate Traveler and large-market-focused division, reported a total transaction value of approximately $8.2 billion. This marks a 35% increase compared to pre-COVID levels in 2019, even though the corporate travel recovery lags at around 80% of pre-pandemic levels according to market data.
During the fiscal year, Corporate Traveler and its large-market counterpart added clients with a combined annual spend of $1.4 billion. This growth was particularly notable in the SME sector, which saw a substantial increase in client wins compared to previous years. In the United States, the acquisition of SME clients nearly doubled in the second half of the year. This surge was bolstered by a new regional structure featuring key centres in New York, Chicago, and Los Angeles.
Charlene Leiss, President of Flight Centre Americas, stated, “This regional structure has enabled us to better identify new opportunities nationwide and accelerate growth in our best-performing sectors.” She highlighted that there is exciting potential in various industries within the SME market, including pharmaceuticals, life sciences, finance and banking, technology, and sports and entertainment.
Globally, the corporate business transactions of Flight Centre rose by 11% year over year, with corporate revenue increasing by 13.7% to $750 million. FCM, the large-market-focused division, reported a 10% increase in transaction volumes, while Corporate Traveler achieved record global profits, according to Flight Centre Global Corporate CEO Chris Galanty.
Despite a flat trading climate in corporate travel during the latter part of the fiscal year and minimal growth in airfare sales, corporate travel transaction volumes globally saw an 11% year-over-year increase in July. Managing Director Graham Turner noted the company’s leaner operations, which included a 5% reduction in staff numbers for corporate businesses by June 30, attributed to strong productivity gains and the mass adoption of new platforms.
Improved staff retention was also highlighted amid these operational changes. The corporate segment reported a pre-tax profit of $143 million for the fiscal year, up from $99 million in the previous year. This reflects the group’s strategic focus on capturing SME market share and optimising operations through technology-driven efficiencies.
Flight Centre’s strategic initiatives and restructured operations have positioned it for continued strength in the corporate travel market, particularly among SMEs. The company’s focus on technology and operational efficiencies has yielded considerable financial gains and positioned it well in a competitive landscape.
