Flight Center faces long-term drop in leisure travel, analyst says

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“We’re moving more of our business online, and when you look at places like UK, North America and Europe, we have a significant leisure business but still a very small market share and we are looking at develop it, ”said Turner. .

People with simple domestic bookings would go online, but customers with more complicated travel itineraries would continue to need travel agents, Turner said, especially in the short term given the hassle of requirements. travel and COVID-19 disruption.

Mr Turner said that with the exception of a few major airlines with virtual monopolies on certain routes, he expected carriers to continue paying the same commissions given they would be in fierce competition for The passengers.

Mr Han noted that Flight Center continued to gain accounts in its most profitable global business travel business, and that it had enough cash flow to weather the pandemic as it continued to “wreak havoc on the world. profits”.

Shares of Flight Center and other travel-related ASX stocks such as Qantas and Webjet have been volatile in recent months as hopes of a strong industry recovery grew towards the end of 2021 only for the spread to spread. of the Omicron variant explodes this optimism.

Flight Center shares were trading at $ 35.54 just before the pandemic, fell to a low of $ 8.92 in March 2020, and had climbed back to $ 24.42 in October of last year. The stock closed at $ 17.90 on Friday.

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