Corporate Travel Management reports “strong momentum” in corporate travel activity since the beginning of the calendar year and expects full recovery is within sight, according to an earnings report issued on Wednesday.
The report for the first half of the 2023 fiscal year, which ended Dec. 31, showed total transaction value had more than doubled compared with the first half of the 2022 fiscal year, reaching A$4.2 billion (US$2.9 billion). Revenue increased 79 percent year over year to A$291.9 million.
Corporate travel in North America stalled during those six months due to “poor airport experience and schedule reliability,” according to CTM, but it rebounded in January to reach its highest levels since the Covid-19 pandemic began. Total transaction value in the region was up 51 percent year over year, and revenue increased 58 percent.
In Europe, total transaction value increased 15 percent year over year, and revenue was up 3 percent, but CTM noted that the first half of the 2022 fiscal year in Europe was a record half due to projects specific to the pandemic. CTM projects the next six months in Europe will be “very strong,” with January EBITDA reaching record levels even though the month is seasonally weak for corporate travel.
In Asia, total transaction value increased 477 percent year over year, and revenue increased 232 percent. CTM said half of its profit in the region was generated in November and December due to the reopening of Hong Kong, and China’s reopening in January was “the last piece of the puzzle for a full CTM recovery.”
CTM managing director Jamie Pherous said the travel management company “has largely rebuilt our workforce with excess capacity for future servicing,” including adding 204 full-time employees during the half.
The company reported EBITDA of A$51.3 million for the first half of the fiscal year, up 182 percent year over year. In the second half of the fiscal year, CTM projects its EBITDA will be in the range of A$109 million to $129 million, “which would ensure great momentum for the expected [fiscal year 2024] full recovery,” according to Pherous.
