Corporate Travel Management reported a 70 percent increase in revenue and a 77 percent increase in total transaction value year over year for the 2023 fiscal year, with strong growth in Europe, Asia and Australia/New Zealand but “slower than expected” travel demand in North America.
CTM’s total revenue for the fiscal year, which ended June 30, reached A$660.1 million (US$427.3 million), about A$12 million higher than earlier projections, according to the travel management company. The company saw “strong momentum” in the fourth quarter of the fiscal year, with revenue recovering beyond 90 percent of 2019 levels.
In North America, revenue increased 40 percent year over year to A$303.7 million (US$196.6 million), and the fiscal year included the completion of the integration of Travel and Transport, which CTM purchased in 2020. CTM’s client base in the region remains 35 percent below 2019 levels in terms of pro forma revenue in the 2019 fiscal year, but the TMC said it has seen “significant revenue improvement” in the region since March and expects it to “grow significantly” in the 2024 fiscal year.
CTM’s revenue in Europe grew 70 percent year over year to A$143 million (US$92.5 million) amid “major new client and contract wins,” the TMC reported. The company expects “strong growth” in its European business in the 2024 fiscal year, and it recently secured a contract, which became operational at the end of the 2023 fiscal year, to manage the accommodation needs of asylum seekers in the U.K., which has a total transaction value of about £1.6 billion (US$2 billion) over two years.
Revenue in Australia and New Zealand increased 134 percent year over year to A$160.1 million (US$103.6 million) during the fiscal year, which included the integration of Helloworld’s corporate and entertainment brands. Total transaction value in the region has reached 2019 levels, although travel demand has not fully recovered, with high airfares making up the difference, according to CTM.
In Asia, revenue increased 198 percent year over year to A$51.6 million (US$33.4 million), with China reopening in the second half of the fiscal year. CTM said its market share in Asia is now double what it was in the 2019 fiscal year.
CTM reported EBITDA of A$167.1 million (US$108.2 million) for the fiscal year, up 179 percent year over year. “Pleasingly, we are successfully converting the revenue recovery into net profit,” according to CTM managing director Jamie Pherous.
