Travel Agents

We’re starting 2018 with “solid momentum”: Skroo

Hannah Edensor

Flight Centre yesterday posted a $325.4 million profit before tax, achieving their major sales target despite what CEO Skroo Turner called “a challenging trading cycle”.

And if you’re anything like us, numbers can get a bit dull after a while, so we’ve found Skroo’s speech on his company’s annual results, for a more interesting take on the profits.

“Flight Centre has started FY18 with solid momentum, which should lead to reasonable first quarter growth,” Turner said.

“In terms of airfare pricing, Flight Centre currently expects a more normal trading environment during FY18 in Australia, with modest decreases or increases in average fares, rather than steep declines across the board.

Turner said that in addition to more a favourable pricing climate, other growth opportunities in FY18 included:

  • Improved leisure results, as Flight Centre expands into new and highly scalable sectors, moves to reduce leisure losses in parts of the Americas and Asia and enhances its network by closing some shops and relocating teams to superior locations
  • Ongoing corporate market-share growth globally, as Flight Centre continues to win accounts across multiple sectors and expands into important new international markets
  • A Stronger contribution from TEN as a result of improved performance from the touring businesses and as the new acquisitions are integrated; and
  • The corporate business’s strong product suite, which complements its people offering, is also leading to rapid growth in auto-fulfilled (touch-less) transactions. This will allow the company to grow TTV without growing cost base.

Turner admitted the first quarter of 2017 financial year was a “subdued trading period as a result of the US and Australian elections and the UK’s Brexit referendum, which led to the Pound’s significant devaluation.

“Airfare deflation also impacted first half FY17 growth… with Flight Centre advertising some of the cheapest international airfare deals it has ever offered during FY17.

“While these offers contributed to the strong ticket volume growth that Flight Centre achieved in markets like Australia, the overall market growth rate (Australia outbound travel) of just over four per cent was fairly subdued by historical standards, pointing to some ongoing consumer uncertainty.”

But when it comes to network growth, Skroo said some sectors can be expected to bloom, while staff numbers should remain relatively flat.

“In terms of network growth, sales team and sales staff numbers are likely to remain relatively flat during FY18, after increasing by 1.8 per cent and around one per cent, respectively, during FY17, as the company focuses on network enhancements and productivity improvements,” Turner said.

“Growth is expected in some sectors and in some lower cost models, along with some closures or changes in strategic direction in some locations.

“In Australia, sales staff numbers are expected to decrease through natural attrition during the first half as new in-store systems are embedded.

“These systems should be fully deployed by early in the 2018 calendar year.

“We believe we are well placed to improve, given the investments we have made, the strategies that have been implemented and the benefits that we have started to see from the transformation program,” Turner added.



SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Hotels

DayAway lands in Australia

The online booking site is here to show Aussies that you no longer have to trawl through your travel a directory for somewhere to stay.

Share

CommentComments

Tourism

Catalan Tourism Board launch grand tour and announce alliance with FC Barcelona

If witnessing FC Barcelona beat some Aussies in a football game last night wasn’t enough Catalonian culture for you, maybe consider a nice tour through the Catalonian country side to really take it in!

Share

CommentComments

Hotels

Jackson Hole reveal what’s new for the Winter 22/23 season

If it’s been 2 and a half years since you’ve been skiing then Jackson Hole have you sorted with a variety of new adventures on offer this year.

Share

CommentComments

Events

Get to know one of our incredible Travel DAZE speakers, Dr. Karl! Tickets are going fast!

Travel DAZE is fast approaching and we have Australia’s most loved clever person gracing us with an incredible talk on the psychological benefits of travel.

Share

CommentComments

Hotels

Airbnb leaves China amid ongoing lockdowns

Like a soon to be ex-wife that complains about her husband never leaving the house, Airbnb is leaving the reclusive Chinese market.

Share

CommentComments

Aviation

Scoot launches flights to South Korea’s ‘Hawaii of East Asia’

Want a Hawaiian holiday but got yourself banned on your last trip? Here’s the next best thing.

Share

CommentComments

Aviation

Register for duo, Air New Zealand’s new training and engagement hub and be in the draw to win some epic prizes

Air New Zealand launched its new training and engagement hub called duo, with training, campaigns, incentives the latest brand updates, plus more.

Share

CommentComments

News

Samoa finally announces border re-opening!

The Pacific Island paradise has been working hard to get travel ready and will soon welcome Aussies back to its sunny shores!

Share

CommentComments

Aviation

“Heroic” flight attendant comes to the rescue as woman gives birth on Frontier Airlines flight

We here at Travel Weekly think this woman deserves a raise, or at least an honorary midwifery degree.

Share

CommentComments

Aviation

Are you a ‘local legend’? Bonza is on the lookout for 17 ambassadors!

We feel as though a local legend could either be a dedicated charity worker in the community or someone who frequently drinks beer out of a shoe!

Share

CommentComments

Events

Travel DAZE speaker Matt Endycott from nib chats all things travel! Get your tickets now!

We’ve got Matt Endycott – one of our exciting speakers – to share his thoughts on the industry. Come to Travel DAZE to hear Matt discuss all things travel!

Share

CommentComments

Midweek Interview

Midweek Catch-up with TRAVLR’s Roann Roberts

We love an alliterative name, all the best superheroes and villains have them. We’re not sure where TRAVLR’s head of global travel product sits on that spectrum, though.

Share

CommentComments