FCM takes strategic steps to transform its business for future growth
FCM, Flight Centre Travel Group’s flagship global business travel division, is weathering the COVID-19 challenge and eyeing further growth opportunities globally.
At a time when many of its competitors have been forced to hibernate their operations, the business has drawn on its financial strength to invest heavily in key growth drivers such as new and differentiated products, and fast tracking new technology implementations to enhance the customer experience, to make travel safer and easier.
This has led to a strong pipeline of new account wins, in addition to delivering valuable new products and services to customers globally – thereby enhancing an already compelling customer offering.
Since the start of its financial year on July 1, 2020, FCM has won new business globally with a total projected annual spend (pre-COVID) of $US700m. Around 60 per cent of this amount has been secured in the key EMEA and Americas markets, including high profile multinational companies in the technology, financial services, manufacturing, FMCG and pharmaceutical sectors.
FCM, which has a presence in 97 countries, has also continued to invest significantly in implementation of new clients globally. Total implemented business since July 1, 2020 has a pre-COVID spend of $US590m and is headlined by FCM’s largest ever global account, a Fortune 100 technology company in 72 markets, as well as the TMC’s first ever UK government contract, which will be serviced via FCM operations in 40 countries.
In a further positive sign, $US294m. of implemented business has started trading with FCM since January 2021, which will fuel the TMC’s continued recovery in the second half of the company’s financial year.
FCM’s financial stability, sustained investment in key business areas and its commitment to supporting customers throughout the last year is underwritten by its parent company the ASX publicly listed Flight Centre Travel Group.
In its half year result announcement, Flight Centre Travel Group this week highlighted its $AU1.2billion liquidity runway as one of the key factors in its success to date in “weathering the unprecedented COVID-19 challenge”.
Flight Centre Travel Group's chief financial officer, Adam Campbell, said decisive actions taken during the past 12 months, including a $AU700m equity capital raising and a $AU400m convertible note issue, as well as restructuring global teams, and streamlining business operations, had given FLT and its key brands a strong platform during a challenging period.
“These measures have not only secured FCM’s longevity and enabled them to withstand the impact of the pandemic on business travel, they have also ensured FCM can continue to support customers and bring exciting and innovative new products to market,” Adam Campbell said.
Marcus Eklund, FCM’s global managing director, said: “FCM’s priority throughout these challenging times has been to support our customers and give them confidence in the strength of our business in the long term. Our strategy is not only to survive, but to thrive. Whilst many other less secure TMCs have been forced into hibernation, FCM has done the opposite. We took the decision to continue investing in sales, implementation, account management and solution design to ensure we were there for our customers when they needed us. We also continued to win record amounts of new business globally, which is testament to FCM’s agile, flexible approach and culture of fluid-thinking in delivering the right travel management solutions for our customers.”
