"Based on our experience, travel immediately rises by 20-30% when restrictions are relaxed,” said FCM global managing director, Marcus Eklund. Photo Credit: FCM
Buoyed by increasing global corporate activities, travel management company FCM is expecting a 50% rebound in its global corporate travel business by the end of 2021.
With increased vaccination efforts in key markets driving consumer confidence, FCM, believes sales will continue to increase globally.
The group, which operates in more than 95 countries, reported that its corporate business profitability remains on track to return by the end of the year, as previously forecast.
At the end of April, Flight Centre Travel Group’s corporate business, of which FCM is the flagship, was trading at 29% of 2020 levels, with a strong organic growth profile. According to the company, this growth was fuelled by a combination of high customer retention rates and record new account wins during the pandemic — like Procter & Gamble and Atos.
Marcus Eklund, FCM global managing director, said: “Based on early signs that vaccines are effective in preventing symptomatic infection, and with healthy vaccine rollout rates in key markets such as Australia, New Zealand, the US and UK, we expect health risks to reduce.
"In the absence of disruptions such as new strains, this should lead to an easing of government-imposed restrictions on domestic and international travel, and a partial rebound of the global business travel market by year end. Based on our experience, travel immediately rises by 20-30% when restrictions are relaxed. A healthier rebound will occur if international borders remain open.”
According to Eklund, the industries which remained strong in 2020 — mining, construction, pharmaceutical, energy and resources, FMCG manufacturing industries and their associated supply chains, together with governments and other growth companies — will continue driving early growth in travel activity in 2021, "as their C-suite, customer-facing and sales executives recommence their traditional customer and team engagement".
To capture this market, Eklund highlighted the need to be "highly adaptable to rapid change" as well as for the corporate travel industry to "offer a greater number of services in health, safety and customer communication, and expedite their delivery, to remain relevant in this environment".
In June 2020, the group launched Traveller Hub, an interactive online resource that provides up-to-date Covid-19 travel information. This was backed by a global rebrand in March 2021, along with the roll-out of a new online booking platform, and a digital health wallet.
With the rise of the hybrid workplace, Eklund expects some pre-pandemic travel activity will shift to virtual working models, leading to further consolidation as organisations increasingly seek travel management providers that are secure and demonstrate a strong duty of care.
"In this fast-changing, unpredictable world, health and safety will remain the single biggest priority," he said.