This year has been a tough one for the Flight Centre Travel Group Ltd (ASX: FLT) share price. The stock has been weighed down amid its soaring short interest and revenue margin concerns.
Meanwhile, however, the companyâs business has picked up. And leading its recovery is, well, business.
The travel agent’s corporate travel business has outperformed recently, recording record total transaction value (TTV) in September and October as its monthly revenue nears pre-COVID levels.
Global managing director of Flight Centreâs Corporate Traveller division Tom Walley believes such trends with continue in 2023. Indeed, the insider is hopeful corporations might even implement policies to encourage business travel in the new year.
Right now, the Flight Centre share price is $15.35. Thatâs 18% lower than it was at the start of 2022. For comparison, the S&P/ASX 200 Index (ASX: XJO) has fallen 5% year to date.
In more good news for Flight Centre fans, Walley isnât alone in his bullishness. One fundie is also tipping green skies for the travel favourite.
Eyeing Flight Centre shares? Hereâs what 2023 could bring
Fans of Flight Centre shares have likely suffered a disappointing 2022. Fortunately, things might be looking up for the ASX 200 company.
Walley commented on what he expects from its corporate business in 2023, saying:
Flight Centreâs corporate divisions, including Corporate Traveller, recovered healthily in the 2022 financial year.
From next year, Iâm forecasting the business travel industry will continue capitalising on its post-COVID growth and success as businesses and their employees gain more confidence to return to the office and the skies.
Such hopes might have inspired confidence in fundies.
Evans & Partners recently initiated coverage of Flight Centre shares, labelling the stock positive, The Australian reports.
What else might the travel industry face in 2023?
Beyond the company itself, Walley tips Aussie airfares to plateau then fall next year, driven by Regional Express Holdings Ltd (ASX: REX)âs entrance in the East Coastâs âgolden triangleâ.
International airfares, however, might not ease until Chinese carriers return to the skies. The insider thinks that will occur in the first half, with capacity reaching 90% of pre-COVID levels by the middle of the year.
Walley also tips business travel to return for middle management in 2023 while businesses are expected to book travel further in advance amid fewer COVID concerns.
Finally, Walley expects more âwork from anywhereâ policies will encourage executives to take working holidays to meet other teams. The policies will likely double as a bid to retain talent amid a tight labour market, he says.
The post Looking to buy Flight Centre shares? Hereâs why this insider tips 2023 to be a big year for business appeared first on The Motley Fool Australia.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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