Skift Travel News Blog

Short stories and posts about the daily news happenings around the travel industry.

Business Travel

Corp Travel Agency CTM Finally Returns to Yearly Profit

4 months ago

Australia’s Corporate Travel Management has managed to convert the recovery in global business trips into a small profit, after more than two years of tough trading conditions.

It was boosted in particular by winning large accounts off rival agencies, according to CEO Jamie Pherous, and three pandemic-era acquisitions, the most recent being 1000 Mile Travel Group, an all-share transaction worth $1.3 million carried out last month.

The Brisbane-headquartered agency reported a 2022 full-year profit of $41.4 million on an underlying earnings before interest, taxation, depreciation, and amortization (or EBITDA) basis. That’s for the 12 months up to June 30, 2022, and follows total transaction value of $3.51 billion — more than three times the $1.12 billion recorded in 2021. Revenue was $269.1 million.

In 2021 it made a loss of $5 million, on an EBITDA basis.

New Wins

Speaking during an earnings call on Tuesday, Pherous said new clients were contributing to its results, with those clients having moved from its competitors, rather than previously having had unmanaged travel programs.

“We’re winning a lot of business and most of it’s off peers,” he said. “A lot of peers are in difficult positions and can’t reinvest in technology or people at the moment.”

In its 2022 first half, which covers the six months to Dec. 31, 2021, it won $3.27 billion of new corporate business. That amount equates to how much those companies spent on travel during 2019.

“We’re one of the very few (agencies) that can demonstrate we can convert recovering activity into revenue and profit before tax,” he added.

The CTM boss also played down any concerns over staffing levels. It recruited 950 employees in the 12 months, and more than doubled staff in its recently acquired Helloworld division from 125 to 285 people.

Pherous also said that CTM had an “out of the box” recruitment strategy.

“We’re finding people from outside the industry, and put them through our academy. Our senior executives talk about their youth and exuberance,” he said. “We’re nearly at the resources we need. We think it’s critical, we’re not in that race to barter and bargain for staff.”

Business Travel

Australian Corp Travel Agency CTM Notches Up Yet Another Acquisition to Expand in U.S.

5 months ago

Australia’s Corporate Travel Management has bought 1000 Mile Travel Group in an all-share transaction.

Terms of the deal were not fully disclosed, but on Friday CTM issued 106,336 fully paid ordinary shares to Zazi Pty Ltd, in its capacity as trustee of the Zazi Investment Trust, as part consideration for the acquisition of 1000 Mile Travel Group.

This element values the deal at more than $1.3 million.

Founded in 2015, 1000 Mile Travel Group is a network of independent travel experts who handle corporate, group, cruise and leisure bookings.

CTM said the acquisition will help it expand its “independent consultant footprint” in the small and medium enterprise market in Australia, the UK and North America a region where it’s been heavily investing over the past two years.

CTM snapped up U.S.-based Travel and Transport for $195 million in September 2020, months after acquiring Texas-based Corporate Travel Planners.

Closer to home it recently bought Melbourne-based Helloworld Corporate for $127 million.

The deal comes at a time when travel management companies are desperately seeking to recruit more consultants to cope with renewed demand for business trips.

“Our business was established to meet the needs of the independent corporate travel business owner market, and our business model has grown from strength to strength,” said Ben Ross, 1000 Mile Travel founder and managing director. “That model has never been more in demand than it is in the post-pandemic environment, and we’re excited to take the next step of our growth journey with CTM.”

CTM founder and managing director Jamie Pherous added the agency was “well-placed to expand the 1000 Mile Travel model into our largest markets of North America and the UK.”

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