FLIGHT Centre, which now has almost half of its network located outside of Australia, has seen a doubling of sales from its Asia/Middle East leisure travel business between July and December 2012.
Though unable to provide specific numbers for leisure travel alone, earnings from corporate and leisure travel sales was up 35 per cent to A$37 million for Singapore and 31 per cent to A$73 million for Greater China, but down 10 per cent to A$152 million in India.
While Flight Centre’s main reason for entering Asia was corporate travel, it now wants to focus on offering leisure travel service in countries such as Singapore, India, China and Hong Kong (TTG Asia e-Daily, September 7, 2012). The company now has three retail outlets in Singapore, two in Hong Kong and 13 in India, while also having sales teams in Hong Kong and China.
Flight Centre managing director, Graham Turner, said: “Our Singapore and Greater China businesses contributed record (July to December) EBIT, which helped Flight Centre comfortably surpass the profit milestone that was established last year.”
During 2011/2012, India, China, Hong Kong, Singapore and the United Arab Emirates generated more than A$500 million in sales, contributing more than A$6 million EBIT to Flight Centre’s results for the period.
Rob Flint, Asia-Middle East executive general manager, Flight Centre, added: “Almost half of our (2,450) shops and businesses globally are located outside Australia, and we’re now closing in on 100 corporate and leisure travel outlets in Asia and the Middle East…We see the region as a solid growth opportunity.”
Around 80 per cent of Flight Centre businesses globally are leisure shops.
Overall, Flight Centre reported a seven per cent year-on-year increase in global sales during July to December 2012. In Australia, sales were up nine per cent year-on-year, with cheap fares stimulating demand.
