FCM sees strong recovery for Asia business as borders reopen

FCM, the flagship business division of Australia’s Flight Centre Travel Group, has exceeded the 50% trading mark of pre-COVID turnover with the recent reopening of borders and the relaxation of restrictions in several key Asia markets.

Its Singapore business saw a 62% month-on-month increase in turnover for March.

“March was an extraordinary month, fueled by fantastic news from several key Asian markets. The announcement by Singapore [of the Vaccinated Travel Framework] was the tipping point which drove a marked recovery for our business in the region,” says Bertrand Saillet, managing director for FCM Asia, in a statement.

On April 1, Singapore launched the Vaccinated Travel Framework (VTL) that allows fully vaccinated travelers to enter Singapore quarantine-free, replacing all existing vaccinated travel lanes and unilateral opening arrangements.

Saillet added that this and other developments in the region would help rebuild not just business travel but also bring a much-needed boost to the recovery of Asian economies and tourism industry.

The travel management company expects “accelerated recovery” from its key Asia markets in the coming months. Its optimism stems from more countries in Southeast reopening their borders without the need for quarantine and on-arrival testing, coupled with the anticipated lifting of travel bans over the next two months from major business travel markets like Hong Kong and Japan. These developments bode well for Asia’s recovery as well, it added.

FCM stated the corporate business has proven to be resilient over the last 24 months. It won $1.4 billion of new businesses globally in the last financial year, gaining clients like Proctor & Gamble, Spotify, Tupperware, Nationwide, AXA and Atos.

According to FCM, it has also “simplified its implementation approach for new multi-national clients through a complete redesign of the integration and onboarding process to address and remove pain points while reducing average onboarding timeframes by up to 50%.”

Timothy Williams, chief financial officer for FCM Asia, says, “Transaction levels for corporate travel in global markets, which have opened since Q4 2021, have seen a bounce-back between 50% to 70% of pre-COVID levels, with some markets hitting 100% recovery this quarter, performing even better than pre-COVID levels.

“This positive trajectory indicates a strong desire to return to in-person meetings for successful business development in 2022, and we’re confident that Asia’s recovery will mirror that of the Americas and Europe in the coming months.”

FCM’s booking figures showed companies in the manufacturing and technology sector are leading the business travel bounce back. Pre-pandemic both were key markets driving business travel, and they continue to dominate the charts as markets in Asia reopen at varying rates across the region.

The others in the top 10 industries leading business recovery (from January 1 to March 31) are: services (includes business solutions, logistics, medical, insurance), retail trade, finance and insurance, construction, marine and agriculture, health care and social assistance, mining, transportation and warehousing.

“Many industries have struggled during COVID with huge disruptions to their supply chains. As border restrictions start to lift businesses are returning to travel to ensure they are engaging with customers and suppliers on a more intimate level,” Williams says.

While 2022 is marked as an optimistic year of recovery for Asia, Saillet acknowledges that it would not be without some issues.

“Clearly companies need to have confidence that travel is going to yield positive results for their business, and that the reward is worth the effort and new focuses that come along with it. While easier border navigation is a critical component, there are other factors that play a part in stimulating the return to travel. Once these factors and travelers’ confidence are overcome FCM is confident that corporate travel is going to come back in a big way,” he says.

*This article originally appeared on WebinTravel.