Flight Centre Travel Group Ltd (ASX: FLT) shares have charged higher in the past month, but could a new trend in corporate travel impact the travel recovery?
The travel company's share price has jumped 11.58% in the past month. In today's trade, Flight Centre shares are falling 1.83%. For perspective, the S&P/ASX 200 (ASX: XJO) is up 0.23% today.
Let's take a look at the outlook for the Flight Centre share price.
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New business travel trend
Business executives are taking longer trips since COVID-19, scrapping one-day trips for more lengthy stays.
One-day trips are declining by 25%, CWT states, cited by Reuters. CWT Asia Pacific sales head Akshay Kapoor noted the fall in shorter trips while highlighting this could translate to more revenue from longer hotel stays. Kapoor told the publication:
I think the trend away from one-day trips in favour of longer stays is here to stay as travellers become more environmentally and fiscally conscious.
This could translate into a higher revenue per available room for hotels in the long run.
Flight Centre is a global travel company that offers not just flights, but also hotels, cruises and travel tours.
In FY22, Flight Centre reported that its corporate businesses returned an underlying EBITDA profit of $14 million for the year, compared to an $80 million loss in FY21.
Flight Centre said "accelerated" leisure and corporate sales growth was driven by higher airfares and demand.
Corporate TTV surged 158% in FY22 to $5.6 billion, while leisure TTV jumped 197% to $4.1 billion.
Flight Centre share price snapshot
Flight Centre shares have lost more than 21% in the past 12 months, while they are down 5% year to date.
In comparison, the S&P/ASX 200 (ASX: XJO) has lost nearly 7% in the past year.
Flight Centre has a market capitalisation of about $3.3 billion based on the current share price.
