Flight Centre grows corporate travel presence

Australian travel retailer Flight Centre Travel Group has furthered its position in the European market, taking full ownership of corporate travel business 3Mundi, which operates in France and Switzerland. 

Flight Centre acquired 25 per cent of the business in June 2017, though has worked with 3Mundi since 2015 through its FCM Travel Solutions corporate travel management network as a licensee. 

With the acquisition, Flight Centre’s corporate travel network now extends to the UK, Germany, France, the Netherlands, Ireland, Switzerland, Sweden, Norway, Finland and Denmark.

“France is an important business travel hub globally, and is now the world’s sixth largest corporate travel market, making it a significant future growth opportunity for our company,” Flight Centre managing director Graham Turner said. 

“We have worked closely with the 3Mundi team since 2015 and believe that this extension of our relationship will unlock further benefits – both for 3Mundi’s local customers and for FCM customers in general – and help us capitalise on this opportunity.”

According to Turner, the deal will broaden 3Mundai’s reach, and give the business full access to Flight Centre’s corporate travel systems, products and customer offerings, while strengthening Flight Centre’s overall corporate network.

3Mundi managing director Solenn Le Brazidec will continue to oversee the business’s day-to-day operations, and has been appointed Flight Centre’s travel solutions’ general manager for France and Switzerland.

“The incredible opportunity to wear the FCM brand for four years already has allowed us to grow and triple our turnover,” Le Brazidec said. 

“By now becoming a subsidiary of [Flight Centre], we have a stronger global offering for our customers, a greater technological integration and more opportunities for growth.”

3Mundi is not the first corporate travel business Flight Centre has invested in this year – having previously acquired a 25 per cent stake in The Upside Travel Company, and becoming its largest individual shareholder.

According to Flight Centre, during the six months to December 31, 2018, its corporate travel business generated about 37 per cent of global total transactional value – about $4.2 billion. 

In late April, Flight Centre lowered its profit guidance for the 12 months to June 30, 2019, from between $390 million and $420 million to between $335 million and $360 million.

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