Morningstar | Flight Centre Diversifying into Overseas and Corporate Travel to Combat Headwinds Facing Leisure
Flight Centre will remain highly profitable for some time, particularly in Australia and New Zealand, where its vast network of retail shops, scale, and brand awareness will continue to drive the group's returns. However, we are wary of longer-term structural headwinds.In the leisure segment, we see pressure on commissions as consumers become more comfortable with dealing directly with suppliers and pure online agencies, and technology erodes the information imbalance that exists between Flight Centre and the leisure traveller. Furthermore, the cost of maintaining the physical network (wages, rent) is likely to magnify the impact on earnings from just a slight deterioration at the top line.In the corporate segment, the industry is highly competitive, customers are powerful, and the information imbalance between them and Flight Centre is not as acute as in the leisure segment.Flight Centre Travel Group is engaged in the travel retailing in both the leisure and corporate travel sectors, plus wholesaling.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
We have operations in 27 countries.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.