Flight Center Travel Group reported record monthly corporate travel sales in September and October, though managing director Graham Turner said the travel management company still has plenty of room to grow in demand recovery.
At the group’s annual general meeting on Monday, Turner said the total transaction value of Flight Center’s business approached A$1 billion (US$671 million) in both September and October. He said overall transaction volumes had returned to pre-Covid-19 levels and revenues were around 95 percent of 2019 levels.
However, these numbers do not mean that companies are traveling at pre-pandemic levels.
“Travel … is at a relatively early stage on the road to recovery, and there is significant pent-up demand that does not fully translate into bookings,” Turner said in his remarks during the meeting. “In business travel, for example, our recovery is driven by very high customer retention rates and high volumes of new account wins rather than a return to overall customer activity to pre-Covid levels.”
For the first four months of the group’s financial year, which runs from July to June, the group’s corporate business reported an EBITDA of A$58 million, compared to a loss of A$28.8 million in the same period a year earlier, Turner said. The group expects the current fiscal year to be one of “gradual recovery” for the travel industry in general, with an even larger recovery in fiscal 2024.