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Most liked posts in thread: FLT - Flight Centre Travel Group

  1. Value Hunter

    Value Hunter

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    Flight Centre is a business that seems to make most of its profits from middle aged and old people. In another 20 or 30 years when all of today's younger people who all grew up with the internet become the next generation of old or middle aged people nobody is going to visit a store front travel agent any more. It is a business with a limited shelf life.

    I sometimes book through Flight Centre but they hardly make any profit from it. I shop around online and then get Flight Centre to price match. The reason for doing this is if something goes wrong and I have problems, as a customer Flight Centre are relatively easy to deal with and I just deal with one port of call instead various airlines, etc.
     
  2. Country Lad

    Country Lad Off into the sunset

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    We will be away for 80 days in Europe, UK and cruises. We did a lot of price checking and quickly eliminated Flight Centre. Ended up doing most of it ourselves both for price and being more flexible with options. Most of our friends travelling overseas are organising the trips themselves, particularly with the wide availability of Airbnbs and so much information on the internet. Maybe that is the way travel arrangements are going in the future to the detriment of the likes of FLT who now need to gouge to make a reasonable profit.
     
    Miner and fiftyeight like this.
  3. greggles

    greggles I'll be back!

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    I wouldn't be going near FLT anytime soon. I think the retail part of the business model isn't as relevant as it once was given how easy it is to book travel online these days. I used Flight Centre quite a bit up until around 2012 but since then I've been booking things online myself and getting better prices.

    More competition, lower margins and the slow decline of their Australian-based business, which now accounts for less than 50% of group revenue, will continue to impact FLT in my opinion.
     
    Smurf1976 and Miner like this.
  4. sptrawler

    sptrawler

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    Could be one to watch in the short term, there may be some pain for travel agents IMO.
     
    qldfrog and Trav. like this.
  5. Trav.

    Trav.

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    @sptrawler I think that you are right plus the cruise companies etc as it appears to be a knock on effect.

    Looking at the chart I was surprised to see that the SP wasn't lower so maybe the we have seen the worst and people are now coming to grips with it, but the announcement released on Friday by FLT it did manage to scare away a few people down -2.4%

    Support @ $37.59

    upload_2020-2-9_4-45-19.png
     
    qldfrog and sptrawler like this.
  6. greggles

    greggles I'll be back!

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    I'm wondering if things will ever be the same for FLT after this. I suspect the travel industry will take years to recover and many Australians are now more likely to holiday at home rather than travel overseas. The psychological scars from this coronavirus outbreak are going to take a long time to heal.

    Add to that the ease of online booking in 2020 and I think that it is inevitable that the role that FLT plays in the travel industry in the future will slowly decline. Essentially the bulk of their revenue comes from commissions from airlines and hotels and other service providers such as tour operators. There is a lot more direct advertising from these kind of companies now and I think the days of package holidays organised by a third party such as FLT now represent a much smaller slice of the travel industry pie than it did say 20 years ago.

    Does any here use Flight Centre regularly? I used to use them quite a bit in the 90s and 00s, but since 2010 I haven't used them once.
     
    Dona Ferentes and sptrawler like this.
  7. systematic

    systematic

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    Yep, it's call ASF :D

    FLT Margins.png
     
    fiftyeight likes this.
  8. fiftyeight

    fiftyeight

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    http://mobile.abc.net.au/news/2018-...ping-off-customers-underpaying-staff/10051474

    This fits in well with my post above. FLT were charging huge margins whenever they could. The good sales people made good coin and so did FLT by knowing who to target and how to do it.

    This is all changing and it has driven the good sales people out. FLT will soon be "price beating" every customer competing with online aggregators
     
    systematic likes this.
  9. Miner

    Miner

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    Thanks mate. Good points for sure. HLO offers better value for money to etail customers from my experience. Thks a lot.
     
    Smurf1976 likes this.
  10. bigdog

    bigdog Retired

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    Motley reported today

    Flight Centre denies mass store closures.
    The Flight Centre Travel Group Ltd (ASX: FLT) share price will be on watch this morning after the company refuted claims that it would close around one-tenth of its stores. According to the AFR, Flight Centre has no plans to close stores despite analysts at Citi believing that it could improve profit margins.

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    One month chart

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    Last edited: Jul 24, 2019
    Miner likes this.
  11. bigdog

    bigdog Retired

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    ASX announcements this morning which market did not like

    The first four months of FY 2020 have been a challenging period for Flight Centre. This is due to a continuation of the issues and disruptions that significantly impacted its second half results in FY 2019.

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    FLT 2019 MD's AGM Address and Results Guidance announcement is uploaded

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    View attachment 98480
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    Last edited: Nov 7, 2019
    sptrawler likes this.