Morgans Roundtable Presentation Graham Turner, April 10, 2019 1 A - - PowerPoint PPT Presentation
Morgans Roundtable Presentation Graham Turner, April 10, 2019 1 A STRONG HISTORY OF GROWTH Global force in travel 25b 10,000 Top four global TMC Top leisure travel company 20b market leader in Australia, 7,500 NZ & South
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Graham Turner, April 10, 2019
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A STRONG HISTORY OF GROWTH
Global force in travel Top four global TMC Top leisure travel company – market leader in Australia, NZ & South Africa Leisure / Corporate businesses in 22 countries Total Corporate presence in 90+ countries (including partner network) Productivity focus – TTV growth now consistently
5,000 7,500 10,000
10b 15b 20b 25b TTV Businesses
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Brand
TMC / Global
Model
SME / Local Niche
Organic Growth - Super investment in Sales and Marketing One FCM - Standardising and Globalising Investing in Platforms
Key strategies
Sales Excellence Investment in Technology and digitisation – Upside deal announced in USA this week Product Development
Niche brands and/or specialisations to provide additional customer benefits and retention
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An organic growth model Tailored for customers Global success
Investing in sales and marketing and delivering value to customers Growing through winning and retaining customers – no large scale acquisitions Some small acquisitions historically to complement organic growth and gain a footprint in key markets – Nordics, Casto Distinct brands with distinct offerings designed specifically for different customer types SME – Corporate Traveller TMS (National, Multi National, Academia) - FCM SSME – Flight Centre Business Travel (included in leisure results) A proven model that has been deployed in 20+ countries throughout the world All countries profitable (excluding FCM Germany start-up) and with strong future growth prospects Highly productive and highly scalable Company-owned corporate businesses generated 37% of group TTV during 1H (circa $4.2b)
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Ongoing investment in key platforms to enhance the traveller experience, access data, deliver new mobile solutions and achieve better cost efficiencies Technology labs in place in Boston, Barcelona, Bangkok, Brisbane & Washington DC to develop new tools & products for customers Recent investments in mobile apps (Sam & Claire) to add full native booking capability to Sam :] “your pocket travel assistant” 25% interest acquired in The Upside Travel Company (USA) this week to fast-track growth in SME sector
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Technology-driven SME specialist with potential to disrupt the large SME & unmanaged corporate sectors Investment reflects FLT’s strategy of creating a next generation SME platform that blends the company’s people expertise with best in class technology to drive an optimal traveller experience Blended SME model to be deployed initially in USA & earmarked for release in Canada & UK Upside will also continue to operate as a standalone corporate business
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Mass Premium Youth
AU NZ RSA
Market leader Growth in new models Vertical expansion Digitisation
UK USA CANADA ASIA
Specialist player Unmanaged small business FCBT Vertical niche Digitisation
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Growth Expansion in growth models and sectors Specialist businesses / online / home-based / flash sale Network Ongoing closure / relocation program for underperforming or poorly located shops Slowdown in recruitment after largest ever 1H to reflect current market conditions In-store staffing levels – right number of consultants per shop Costs Ongoing focus on reducing head
Offshoring, outsourcing, robotics Productivity & Margins IQR – instant quality response to all customer enquiries Attachment, quotes on all products, packages Sales of FLT family products Centralised pricing Proactive and targeted performance improvement plans in place to help consultants achieve targets
ADDRESSING THE CHALLENGES
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FCB 2.0
Membership - Personalised offers, closed user group rates Products & Pricing - New use of data for pricing and packaging of offers Self Service - Mobile apps, new websites, eCommerce, modifying bookings Sales Technologies - Lead generation, lead management (Red Connect)), CRM Modern Marketing - Automation, data for segmentation, retargeting.
New models
Independent contractor and affiliate Host to referral agent model Online Flash sale / voucher Youth and social StudentUniverse (online student brand) earmarked for Australia launch late in 2H
Productivity & People
Seeking further productivity gains New in-store sales system (GDS) now fully deployed Specialisation Flexibility and retention Cost out and efficiency Automation/digitisation to remove pain points
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Touring Destination Management Hotels
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10-year lease agreement in place for four-star Camakila Resort in Bali Management agreements in place in 22 other properties Short-term expansion focus on key locations in Australasia
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Tracking towards bottom of targeted FY19 profit range (underlying PBT between $390m and $420m) at end of 1H Monitoring monthly trading results to ensure range remains appropriate Continued focus on Australian leisure business to improve margin, increase TTV & slow cost growth after challenging 1H Rapidly growing North America business continuing to perform but now tracking against a strong trading period during FY18
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