Flight Centre Travel Group Limited · ASX:FLT
Flight Centre Travel — Morgans Conference 2016
28 slides from Flight Centre Travel's conference presentation, Oct 12, 2016
Slide 1: Morgans Conference Presentation 12 October 2016
MORGANS CONFERENCE PRESENTATION 12 OCTOBER 2016 For personal use only
Slide 2: Our 2022 Flight Path
OUR 2022 FLIGHT PATH For personal use only Blueprint in place for 2022 & 2035 Focus on improving mid- Targeting long-term growth in 6 key results areas Multi million dollar investments underway to transform IT, enhance diversity & deliver new revenue streams
Slide 3: 2022 Flight Path: Tech Investments
2022 FLIGHT PATH: TECH INVESTMENTS For personal use only Best Product & Pricing Efficient Financial Management Technology Transformation Leading Online/Self Service Single View of Customer – all Capability Channels
Slide 4: 2022 Flight Path: Operational Investments
2022 FLIGHT PATH: OPERATIONAL INVESTMENTS For personal use only •New & unique • Brands ranges exported & developed & launched deployed New Brand Products expansion People Acquisitions Initiatives •10 additions • Ownership since FY15 to schemes complement • Workplace organic growth flexibility
Slide 5: 2022 Flight Path: Recent Acquisitions
2022 FLIGHT PATH: RECENT ACQUISITIONS For personal use only FCM Corporate Businesses Mexico Netherlands Malaysia Germany* Sweden* Finland* Norway* Denmark* Online StudentUniverse BYOJet Other Ignite (49%) Travel Tours* (India) Maya Events (cievents Hong Kong) AVMIN * Not yet formally completed
Slide 6: 2022 Flight Path: Key Strategies
2022 FLIGHT PATH: KEY STRATEGIES For personal use only 1. Make it easy to buy from us and thus lead to sticky and deep customer relationships 2. Famous distinctive brands with expertise 3. Scalable growth
Slide 7: 2022 Flight Path: Key Growth Sectors
2022 FLIGHT PATH: KEY GROWTH SECTORS For personal use only Leisure Travel Medium- In- term destination Non-travel Growth Travel Drivers Experiences Corporate Travel
Slide 8: 2022 Flight Path: Leisure Travel Retailing
1) 2022 FLIGHT PATH: LEISURE TRAVEL RETAILING For personal use only Aim to be the world’s best person-to-person retailer Diverse network of mass market & specialist brands to meet customers’ needs across multiple channels Growing distribution channels to dominate the leisure travel market in many co
Slide 9: Travel Retailing: The P2P Index
TRAVEL RETAILING … The P2P index For personal use only CORE LEISURE VOLUME 85-90% of Australian TTV OTA CONTACT FLAGSHIP COMMUNITY HOME EVENTS CENTRES STORES BASED • High volume, low • 24/7 telephone • Hyperstores • Shopping centres • Associates • Travel Expos, touch, low margin sales & assist • Meg
Slide 10: New Initiatives: Australian Leisure
NEW INITIATIVES: AUSTRALIAN LEISURE For personal use only Book With Me • Personalised URL for FLT’s travel agents Interest-free Holidays • Offer extended to FLT’s leisure brands through new agreement with Flexi Group Key To The World • Innovate digital travel wallet launched by Travel Money Platinum
Slide 11: Australian Leisure: Falling Fares
AUSTRALIAN LEISURE: FALLING FARES For personal use only Cheap fares Legacy of driving widespread demand international Average discounting international that started fares currently during Q3FY16 Average domestic fares are relatively flat considerably lower than PCP
Slide 12: Falling Flight Prices: Examples
FALLING FLIGHT PRICES: EXAMPLES For personal use only $1,500 $1,000 Headline Return Fare from Sydney Oct 16 $500 Headline Return Fare from $0 Sydney Oct 15 Phuket London Bangkok LA New (Based on fares advertised on York flightcentre.com.au) The cheapest advertised fares to Phuket & London are curren
Slide 13: Student/Youth: Growth Objectives
STUDENT/YOUTH: GROWTH OBJECTIVES For personal use only 1. Be the dominant global retailer of student & under-30s travel products through both the StudentUniverse brand & Student Flights brand initially 2. Be a major provider of student & under-30s travel experiences including touring, accommodation
Slide 14: Highly Coveted Youth Travelers
Highly Coveted Youth Travelers For personal use only Multiple long-haul trips Educational, leisure & altruistic per year travel purposes 18 – 30 years-old Long-term customer base Explore new destinations High yield Global explorers Flexible dates $200b-a-year industry Future business travelers
Slide 15: In-Destination Travel Experiences
2) IN-DESTINATION TRAVEL EXPERIENCES For personal use only FLT’s growing network of tour operators & ground operations businesses
Slide 16: In-Destination Travel Experiences
2) IN-DESTINATION TRAVEL EXPERIENCES For personal use only Destination Management • Back-Roads • Future • Top Deck • Buffalo growth Tours (JV) opportunity Tour Hotels Operations Manufacturing & delivering products that can be distributed via FLT’s leisure network
Slide 17: DMC: FLT's Destination Management Company
DMC: FLT’S DESTINATION MGMT COMPANY For personal use only An Early Success Story JV with Vietnam-based Buffalo Tours launched in September 2014 Now operating in 11 Asian countries Day tours, extended touring, transfers, contracting attractions & hotels FIT & GIT - Top Deck ground operator, MICE, cru
Slide 18: Corporate Travel
3) CORPORATE TRAVEL For personal use only ✓ TMC ✓ SME ✓ Entertainment / Sport ✓ MICE ✓ Education ✓ Consulting ? Low Cost Corporate By sales, FLT is now one of the world’s top-5 corporate travel managers & aims to be the world leader
Slide 19: Corporate: Growing Globally
CORPORATE: GROWING GLOBALLY For personal use only Now generating Corporate 14.37% Company- about 33% of turnover Has almost CAGR owned global topped doubled achieved businesses in turnover $AU6.2b since FY11 over past 5 19 countries* (almost 50% during FY16 years in the UK & USA) * Including recent
Slide 20: Corporate v Leisure Turnover FY16
CORPORATE v LEISURE TURNOVER FY16 For personal use only 90.00% 80.00% 70.00% 60.00% 50.00% Leisure & Other 40.00% Corporate 30.00% 20.00% 10.00% 0.00% Australia UK USA Almost half of FLT’s turnover in the USA & UK and almost a quarter in Australia now comes from the company’s corporate brands
Slide 21: Corporate: Global Growth
CORPORATE: GLOBAL GROWTH For personal use only Circa 14.3% Turnover ($AUb) CAGR without 7 any significant 6 acquisitions 5 4 3 Turnover ($AUb) 2 1 0 FY11 FY12 FY13 FY14 FY15 FY16
Slide 22: Corporate Travel: Global Scale
CORPORATE TRAVEL: GLOBAL SCALE For personal use only FLT now has an equity presence in 4 of UK USA the world’s 5 largest corporate markets Company owned businesses in 4 other top-15 countries – India, Canada, Australia & Netherlands Germany China Aim to be in all top-15 countries by 2022 (excluding
Slide 23: The Top-15: FLT's Missing Ingredients
THE TOP-15: FLT’S MISSING INGREDIENTS For personal use only South Italy France Japan Korea Spain Brazil Europe Asia/Americas
Slide 24: Other Businesses Adjacent to Travel Business Model
4) OTHER BUSINESSES For personal use only ADJACENT TO TRAVEL BUSINESS MODEL
Slide 25: For personal use only
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Slide 26: For personal use only
PEDAL cReUR Our purpose... ~ Enriching mind, body, S. earth and soul with om fj , the freedom of riding. 7, & ' | f APD ij ADVANCE TRADERS*
Slide 27: 2022 Flight Path: Acceleration
2022 FLIGHT PATH: ACCELERATION For personal use only Objective: To establish the world’s leading travel accelerator, incorporating areas of our DNA & contributing to our future story Long-term plan for incubation Mentoring & hubs in key developing start-ups to accelerate global locations growth & re
Slide 28: Questions?
For personal use only QUESTIONS?