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FLT - Flight Centre Travel Group

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Is there a service that charts fundamentals? I want to see how the margins of FLT have changed over time.

I have a few extended friends who work or worked for FLT and the workers seem to be getting sqeeeeeezed
 
fiftyeight said:
Is there a service that charts fundamentals?
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Yep, it's call ASF :D

FLT Margins.png
 
systematic said:
Yep, it's call ASF :D

View attachment 88353
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Haha LEGEND, are you tracking this for many companies???

So either I am wrong or maybe I am asking the wrong question or both.

My thoughts were that FLT are maintaining profit by squeezing staffing costs. But I guess that would not be reflected in their margins until they reach the point where they cannot squeeze the staff anymore.

A few of the girls I know used to make good coin with the commission structure. Good staff could crack $100k in a good store and good managers in good stores could crack $200k. Great job in their 20s, lots of travel, good culture and much better than most other retail jobs out there.

Most moved have moved on as they were not sales people and were not making the big $$$ but the couple who were making good $$$ as they were good at sales have recently left or are looking to move on. To compete with the online world FLT has capped the commish the agents can charge and changed the structure making it almost impossible for even good agents to make good money.

So for the young people working at FLT for a bit of fun, not much changes and FLT save some staffing costs. But this comes at the expense of now losing some really good sales people.

At some point this has to hurt the business? or are FLT banking on their structure and processes being good enough they can lose these good sales people? If this is the case and maybe it already is, FLT are just resellers competing on price with the online world.

The recent share price rise implies different but being stuck in that game does not sound like a good idea.

I guess one answer could be that FLT have already lost as much market share to online as they are going to and now its about capitalising on what they have left. Again though that seems very dangerous as people become more tech savy.

There is a massive risk from Google Travel (GT) and AI/ML. Planning a holiday will become much easier with the assistance of GT if they really go after it. Enter in some rough dates, sites and/or places and boom GT with the data on you Google already have on you can plan a trip with suggestions.

https://www.forbes.com/sites/geoffw...oogle-flights-google-trips-more/#5027e3154d98

Or maybe people just take this info in to FLT to book and Google really dont care where you book as long as Google is where you do you holiday planning?

Or maybe if people are more price educated on their holiday it places more price pressure on FLT as people will take in their quotes.

Or or or........ guessing the future is hard haha much more pondering on this required
 
http://mobile.abc.net.au/news/2018-...ping-off-customers-underpaying-staff/10051474

This fits in well with my post above. FLT were charging huge margins whenever they could. The good sales people made good coin and so did FLT by knowing who to target and how to do it.

This is all changing and it has driven the good sales people out. FLT will soon be "price beating" every customer competing with online aggregators
 
We will be away for 80 days in Europe, UK and cruises. We did a lot of price checking and quickly eliminated Flight Centre. Ended up doing most of it ourselves both for price and being more flexible with options. Most of our friends travelling overseas are organising the trips themselves, particularly with the wide availability of Airbnbs and so much information on the internet. Maybe that is the way travel arrangements are going in the future to the detriment of the likes of FLT who now need to gouge to make a reasonable profit.
 
Haha, seems like I should of taken a bigger short position. Didnt want to get in front of the freight train and all that good money management stuff.

Probs going to short again as this business model is dead. Any bad news will result in declines as recently seen.

BUT (always a but)

Not sure how much management matters. The management team is rock solid. I have spoken to FLT staff who love "Screw" (Chuck Turner). I have spoken to workers making fark all who stay at FLT for the CHANCE of making it to the Global Party. Screw is a well loved all round good guy/CEO, I truely hope he knows this, because when he restricts wages and reduces benefits it wont be pretty.

To me it looks like FLT are the masters (in a good way and I hope they succeed elsewhere) of flogging a dead horse. But at some stage that horse ends up at the glue factory
 
fiftyeight said:
Haha, seems like I should of taken a bigger short position. Didnt want to get in front of the freight train and all that good money management stuff.

Probs going to short again as this business model is dead. Any bad news will result in declines as recently seen.

BUT (always a but)

Not sure how much management matters. The management team is rock solid. I have spoken to FLT staff who love "Screw" (Chuck Turner). I have spoken to workers making fark all who stay at FLT for the CHANCE of making it to the Global Party. Screw is a well loved all round good guy/CEO, I truely hope he knows this, because when he restricts wages and reduces benefits it wont be pretty.

To me it looks like FLT are the masters (in a good way and I hope they succeed elsewhere) of flogging a dead horse. But at some stage that horse ends up at the glue factory
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Lol. Get paid poorly and put up with rubbish to hear Pitbull live? Nah.

https://www.fctravelacademy.com/blog/global-gathering-flight-centre
 
Hello FLT followers
Any narrative on the price collapse of FLT today ?
There have been many recommendations by so called experts in the market and they have taken hide now. Does it give an opportunity to invest on FLT ? Do not hold FLT but checking out with current holding on HLO and WEB. Currently HLO is suffering from political turmoils but WEB is looking nice and steady.
Welcome your comments.
Thanks
 
Country Lad said:
We will be away for 80 days in Europe, UK and cruises. We did a lot of price checking and quickly eliminated Flight Centre. Ended up doing most of it ourselves both for price and being more flexible with options. Most of our friends travelling overseas are organising the trips themselves, particularly with the wide availability of Airbnbs and so much information on the internet. Maybe that is the way travel arrangements are going in the future to the detriment of the likes of FLT who now need to gouge to make a reasonable profit.
Click to expand...
Around the world in 80 days !
 
Miner said:
Hello FLT followers
Any narrative on the price collapse of FLT today ?
There have been many recommendations by so called experts in the market and they have taken hide now. Does it give an opportunity to invest on FLT ? Do not hold FLT but checking out with current holding on HLO and WEB. Currently HLO is suffering from political turmoils but WEB is looking nice and steady.
Welcome your comments.
Thanks
Click to expand...

I wouldn't be going near FLT anytime soon. I think the retail part of the business model isn't as relevant as it once was given how easy it is to book travel online these days. I used Flight Centre quite a bit up until around 2012 but since then I've been booking things online myself and getting better prices.

More competition, lower margins and the slow decline of their Australian-based business, which now accounts for less than 50% of group revenue, will continue to impact FLT in my opinion.
 
greggles said:
I wouldn't be going near FLT anytime soon. I think the retail part of the business model isn't as relevant as it once was given how easy it is to book travel online these days. I used Flight Centre quite a bit up until around 2012 but since then I've been booking things online myself and getting better prices.

More competition, lower margins and the slow decline of their Australian-based business, which now accounts for less than 50% of group revenue, will continue to impact FLT in my opinion.
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Thanks mate. Good points for sure. HLO offers better value for money to etail customers from my experience. Thks a lot.
 
Motley reported today

Flight Centre denies mass store closures.
The Flight Centre Travel Group Ltd (ASX: FLT) share price will be on watch this morning after the company refuted claims that it would close around one-tenth of its stores. According to the AFR, Flight Centre has no plans to close stores despite analysts at Citi believing that it could improve profit margins.

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One month chart

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ASX announcements this morning which market did not like

The first four months of FY 2020 have been a challenging period for Flight Centre. This is due to a continuation of the issues and disruptions that significantly impacted its second half results in FY 2019.

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FLT 2019 MD's AGM Address and Results Guidance announcement is uploaded

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Attachments

  • FLT 2019 MD's AGM Address and Results Guidance.pdf
    460.3 KB · Views: 4
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sptrawler said:
Could be one to watch in the short term, there may be some pain for travel agents IMO.
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@sptrawler I think that you are right plus the cruise companies etc as it appears to be a knock on effect.

Looking at the chart I was surprised to see that the SP wasn't lower so maybe the we have seen the worst and people are now coming to grips with it, but the announcement released on Friday by FLT it did manage to scare away a few people down -2.4%

Support @ $37.59

upload_2020-2-9_4-45-19.png
 
Personal case:
Was planning to take a short 5 days holidays o/s for a break after staying home so long preparing for our property sale
Post school holidays..
Well as you can imagine, this is off
So fidji, Webjet or flight center lost a few hundreds...
 
Flight Centre is a business that seems to make most of its profits from middle aged and old people. In another 20 or 30 years when all of today's younger people who all grew up with the internet become the next generation of old or middle aged people nobody is going to visit a store front travel agent any more. It is a business with a limited shelf life.

I sometimes book through Flight Centre but they hardly make any profit from it. I shop around online and then get Flight Centre to price match. The reason for doing this is if something goes wrong and I have problems, as a customer Flight Centre are relatively easy to deal with and I just deal with one port of call instead various airlines, etc.
 

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