Corporate Travel Management’s revenue in the quarter ending June 30 reached nearly 70 percent of pre-pandemic levels, with the travel management company seeing “momentum [that] makes us optimistic about the future” during that period, CTM managing director Jamie Pherous said in TMC’s earnings announcement.
TMC said demand for corporate travel in North America “remained strong” during the final quarter of fiscal 2022, with revenue in the region reaching 73 percent of the same quarter in 2019. These figures take into account the acquisition of Travel and Transport in 2020 and Pherous said that the integration into a single system should be completed by the end of summer, which will give an additional boost to the region.
For the fiscal year, North America accounted for 56 percent of CTM’s total revenue and other revenue, according to Kevin O’Malley, TMC’s CEO for North America.
In Europe, revenue during the quarter recovered to 86 percent of 2019 levels, which CTM attributed to a “combination of customer wins, new contracts and the broad recovery.” TMC also noted that Earnings Before Interest, Taxes, Depreciation and Amortization in the region reached 108 percent of pre-pandemic levels, the first region to surpass the 100 percent mark in that metric.
Revenue recovery in the Australia/New Zealand region reached 64 percent of 2019 levels. CTM reported that the region had the fastest levels of recovery during the quarter, although revenue recovery lagged in part due to a stronger mix low international travel. In June, when international travel became a bigger part of the mix, revenue reached 74 percent of 2019 levels.
Asia’s revenue recovery continued to lag at 39 percent of pre-pandemic levels, particularly due to China, where borders still remain largely closed to international travel.
CTM claimed increased market share within the wider corporate travel market and a customer retention rate of 97 percent. Pherous noted that those customers who are being retained had rates that were either the same or increased.
“Customers are really appreciating services that go the extra mile, and customers are prepared to pay for that,” he said.
CTM said it expects the recovery to continue in the coming months through additional market share gains and the recovery of the travel program, with a May survey of CTM customers showing that 80 percent expect to spend as much or more than they made money. Covid-19 in fiscal year 2023. TMC projects that it will achieve full recovery in fiscal year 2024, based on current projections from the International Air Transport Association.
Results of the first part of CTM 2022