Corporate Travel Management reported a 25 percent increase in revenue in the first half of its 2024 fiscal year, reaching a record A$363.7 million (US$237.9 million), despite "negative travel sentiment" that hit in its second quarter.
That negative sentiment in the months of October through December included the conflict in the Middle East, slower-than-expected recovery in outbound travel from China and corporate travel budgets being used up by the end of the calendar year, according to CTM. North America, where CTM revenue was up 3 percent year over year to A$150.7 million (US$98.6 million), was hit hardest by those factors, with most of CTM's clients' budgets used up by the end of September due to "unsustainable high ticket prices," the travel management company reported.
CTM noted that has "dissipated" starting in January, with ticket prices down by double-digit percentages year over year, which is "positive for corporate customer calendar year 2024 budgets and activity levels." North America also has led for new client wins for CTM in the first half of 2024, according to the earnings report.
In Europe, revenue in the first half of the fiscal year increased 118 percent year over year to A$98.5 million (US$64.4 million), which CTM said was driven by client wins as well as crisis and humanitarian projects from a U.K. government contract it manages in such locations as Israel, Ukraine, Afghanistan and Sudan. CTM's client base in Europe has recovered to 75 percent of pre-pandemic levels, according to the TMC.
In Australia and New Zealand, CTM's first-half revenues increased 1 percent year over year to A$81.4 million (US$53.2 million). CTM said it has seen a "strong January rebound" in the region, with revenue up 11 percent year over year, and client wins in the region during the first half of the year was the best since the pre-Covid years.
In Asia, revenues were up 63 percent year over year in the first half to A$32.5 million (US$21.3 million). CTM reported earnings in the Greater Bay Area of China have recovered to only 50 percent of pre-pandemic levels, slower than expected, but added that it is winning corporate business "at record rates" in Asia.
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