FCTG home-based focus

FLIGHT Centre Travel Group (FCTG) has confirmed several key “transformation priorities” as it navigates through to the other side of the COVID-19 pandemic, including “developing a leading commercial, product and technical offering tailored for independent travel entrepreneurs (home-based agents)”.

The move was announced as part of the company’s full-year results (TD breaking news), with an $849 million statutory loss.

MD Graham Turner also flagged the rejuvenation of the Flight Centre brand while at the same time growing its online sales which had been increasing strongly before the pandemic.

Other priorities included growth in the premium/luxury sector represented by Travel Associates in Australia and Laurier du Vallon in Canada, Turner said, while e-commerce growth will be driven through the Jetmax and StudentUniverse OTA brands.

The company generated almost $1.2 billion in leisure e-commerce revenue in 2019/20, mainly via the Flight Centre brand websites, BYOjet, Aunt Betty and StudentUniverse, which is currently leading the company’s recovery to date with TTV back to 30-40% of prior year levels.

“The company continues to invest in e-commerce capabilities and will soon introduce a new packaging tool, along with other enhancements, to fast-track its online market share growth,” the results announcement noted.

FCTG has seen a consistent uplift in demand since Apr, but ongoing travel restrictions and border closures “continue to hamper a more meaningful industry-wide recovery”.

Flight Centre’s “liquidity runway” means it will also be ready to “capitalise on industry consolidation,” Turner added.