Flight Centre Travel Group Limited · ASX:FLT
Flight Centre Travel — Morgans Conference 2017
20 slides from Flight Centre Travel's conference presentation, Oct 11, 2017
Slide 1: The Travel Experience Network (T.E.N)
For personal use only The Travel Experience Network (T.E.N) Presentation by Nick Lucock Morgans Conference October 11, 2017
Slide 2: Business Overview: FLT
Business Overview: FLT For personal use only Business 20,000 people in 5 key Transformation Founded in 1982, IPO Circa $4.5b market regions – program in place – cost in 1995 capitalisation Australia/NZ, EMEA, control & revenue Americas, Asia, Global growth focuses Diversity: 30+ brands, Almost 3000
Slide 3: Core Business Pillars: FLT
Core Business Pillars: FLT For personal use only In addition to being Australia’s largest travel retailer and the Leisure T.E.N country’s largest corporate travel manager, FLT has an emerging stable of in- destination & distribution/support Corporate businesses that form the T.E.N
Slide 4: T.E.N: Strategic Drivers
T.E.N: Strategic Drivers For personal use only Greater end-to- Ability to develop Differentiates Access to end influence unique products FLT’s leisure & external over the (standalone & corporate distribution & customer journey combined) offerings revenue streams Capture a greater Access deeper Mitig
Slide 5: T.E.N – Business Structure
T.E.N – Business Structure For personal use only Global Global Hotel Distribution Network Network Global Global Touring Procurement Network Network Global Global DMC Services Network Network In Destination Businesses / Sales & Support Businesses FY18 In-destination TTV circa $250m (annualised)
Slide 6: Services
Global Services Network For personal use only – Centralised global functions: » Consolidated AARP » Global risk – enterprise, product, in-destination » Legal / tax / corporate structures » Peopleworks & HR – Future Direction » Treasury consolidation » One Best Way » Compliance
Slide 7: Procurement
Global Procurement Network For personal use only – Consolidate global travel procurement » Centralised - FIT / Corporate / Land & Sea / Internal T.E.N » System development & support / database management » Finance – Treasury / AARP » Competitive analysis & yield management » Selling Partners: 20+ bu
Slide 8: Distribution
Global Distribution Network For personal use only – Distribution sales model index: » Full service: person to person » Limited Service: aggregated B2B » Specialist: voucher, rewards program (Get Luxe) » 20+ businesses across 6 countries – Future Direction » Expanded product ranges (touring, adventur
Slide 9: Touring
Global Touring Network For personal use only • Inspiring your travel with • Experts in small group journeys life changing experiences • Mature market • Youth travel 18 – 30s • European centric • 100+ destinations • Acquired in 2009 • Acquired in 2014 • Pax 10,000+ (FY 17/18) • Pax 50,000+ (FY 17/18)
Slide 10: Touring Network - Future Diversification & Growth
Global Touring Network - Future For personal use only – Diversification & Growth » Destinations: South & Latin America (TDT) & Asia (BRT) » Source Markets: Asia / Direct / Online » Brands: Open Age / Adventure » Pax: 100,000+ (FY 21/22) – Emerging trends » New modes of transport: Sail / rail etc » S
Slide 11: DMC
Global DMC Network For personal use only • 12 Asia countries • Mexico / DR / Costa Rica • FIT / GIT / MICE / Transport • FIT / MICE / Transport • Sightseeing / transfers / on ground • Sightseeing • Initial acquisition in 2014 • Acquisition 2017 • Majority ownership 2017 • Pax 10,000+ (FY 17/18) • 35
Slide 12: DMC Network - Future
Global DMC Network - Future For personal use only – Geographic Expansion: 90% of key leisure & corporate destinations » Organic: USA / Canada / Cuba / South America » Acquisition: Australia / South Pac / Europe – Service Expansion » Cruise sector » Tour operator services (GIT) » Global brand for B2B
Slide 13: Hotel
Global Hotel Network For personal use only – Bespoke Hotel Management Asia (BHMA) » Bangkok-based, acquired July 2017 – Portfolio: » Small to Medium 3 - 5 star properties » New build “B” grade locations » Brands: X2, X2 Vibe & Away Resorts » 15 properties operational & 10 due to open in 2017/18 » 0%
Slide 14: Hotel Network - Future
Global Hotel Network - Future For personal use only – BHMA development pipeline pivot: » 4 to 5-star standard » New build & re-flagged properties » Tier “1” destinations & “A’” grade locations – Geographic Expansion » Organic – Australia / South Pacific / Indonesia / S.E. Asia » Acquisition - USA /
Slide 15: Travel Experience
Travel Experience Network For personal use only X2 RIVER KWAI HOTEL X2 VIBE BURIRAM HOTEL
Slide 16: Travel Experience
Travel Experience Network For personal use only X2 Vibe BANGKOK
Slide 17: Travel Experience
Travel Experience Network For personal use only X2 KOH SAMUI RESORT
Slide 18: Travel Experience
Travel Experience Network For personal use only X2 SUMBAWA, INDONESIA X2 PHUKET KAMALA
Slide 19: Travel Experience
Travel Experience Network For personal use only X2 VIBE HOI AN, VIETNAM AWAY KOH KOOD RESORT
Slide 20: For personal use only
THE FOR T wg piel Or WORLD HOSE WHO WANT TOSEE