Flight Center makes profits for SMEs and stimulates business growth

Flight Center Travel Group has reported a 10% year-over-year increase in total transaction value for its global business operations in the 2024 financial year ending June 30, driven significantly by gains among SMEs.

The company’s business businesses, including the SME-focused Corporate Traveler and the mass market-focused FCM, reported a total transaction value of approximately $8.2 billion, a growth of 35% compared to pre-Covid-19 levels crisis in 2019, despite business travel recovery lagging around 80% of pre-pandemic levels, according to Amadeus market data.

The group noted that Corporate Traveler and FCM added clients during the fiscal year with a combined annual spend of $1.4 billion, with a notable increase in SME wins for Corporate Traveler compared to previous years. In the US, the number of SMB customers almost doubled in the second half of the year, supported by a new regional structure with key centers 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 Leiss, president of Flight Center Americas. “We see exciting potential in the SMB market across several sectors, including pharmaceuticals, life sciences, finance and banking, technology, sports and entertainment, and more.”

Globally, Flight Centre’s business transactions increased 11% year over year, while operating revenues increased 13.7% to $750 million. FCM reported a 10% increase in transaction volumes Business traveler achieved record global profits, said Chris Galanty, CEO of Flight Center Global Corporate.

Despite a “flat trading environment” in business travel during the latter part of the financial year and minimal growth in airline ticket sales, business travel transaction volumes globally rose 11% year-on-year in July. Flight Centre’s managing director Graham Turner told Business Matters about the company’s leaner operations, with a 5% reduction in its corporate workforce as of June 30, thanks to “strong productivity gains and the mass adoption” of FCM Platform and Corporate Traveler’s Melon. Turner also noted improved employee retention as a result of these changes.

Flight Centre’s operations reported pre-tax profits of $143 million for the financial year, compared to $99 million in the previous year, reflecting the group’s strategic focus on capturing SME market share and optimizing operations through technology-driven efficiency.