Australia-based travel management company Corporate Travel Management and Flight Centre Travel Group's corporate-focused brands this week reported solid growth in corporate travel transactions across their multinational operations and laid out further growth ambitions for the U.S. corporate market.
Publicly traded Australian travel management company Corporate Travel Management spent this week in damage control mode following a damning report from a hedge fund. That hedge fund has taken a short position in the company's stock and stands to gain on a fall in CTM's share price.
CTM isn't waiting for a global distribution system or leaning on a third-party aggregator to hook in NDC application programming interfaces, CTM founder and managing director Jamie Pherous said during an interview this week. Instead, CTM is using homegrown aggregation and booking tech to connect to airlines.
Last week, a group of travel management companies in an open letter likened New Distribution Capability to a "half-built house." They want to deliver on the standard's promise of richer content for clients, they wrote, but they must enable their own new distribution capabilities to "fulfill customer requirements of comparability, policy control, cost management, reporting and duty of care."
Australia-based Corporate Travel Management by the end of the year plans to launch its full suite of client-facing technologies in the U.S., including its online booking system, managing director Jamie Pherous said during the travel management company's fiscal-year earnings call Wednesday.
Australian flag carrier Qantas introduced a new commercial structure for travel agencies to promote adoption of New Distribution Capability-compatible connections, either through a global distribution system or another approved tech provider. Its pitch to agencies includes the threat of a $12.50 per-segment surcharge on GDS bookings and diminished content access but also a private channel-type framework as a path for agencies to avoid both.
It's going on two years since Australia's Corporate Travel Management made an acquisition in the U.S. and more than a year since it bought an agency anywhere. That may not sound like a long time, but for CTM, which has acquired around a dozen travel agencies since publicly listing on the Australian Securities Exchange in late 2010, it feels like an eternity.