Giant retail journey company in Australia
Flight Centre Journey Group (FCTG) is a big retail journey company in Australia. It was based in 1982, and is headquartered in Brisbane, Australia.
FCTG operates underneath a number of names in Australia, New Zealand, United States, Canada, United Kingdom, South Africa, Hong Kong, India, China, Singapore, United Arab Emirates, and Mexico, and licenses its identify in an additional 80 international locations. In the USA, the corporate operates underneath the Liberty Journey and Journey Associates retail manufacturers and GOGO Worldwide Holidays as a wholesale model. It additionally operates StudentUniverse, FCM Journey Options, Company Traveler, ciEvents, Campus Journey and Stage & Display screen and Healthwise.
The corporate was co-founded by Graham Turner and Geoff Harris in 1982 and started with a retailer in Sydney. In 1995, Flight Centre UK and Flight Centre Canada opened.
In December 2015, the corporate acquired StudentUniverse and a 70% stake in BYOjet. Moreover, in 2016, the corporate started on-line journey model Aunt Betty. Collectively, BYOJet and Aunt Betty function as “low price” Australian on-line journey brokers, offering flights and different companies at decrease costs than Flight Centre’s retail places.
In New Zealand, Flight Centre operates quite a few manufacturers together with Cruiseabout, Scholar Flights, Journey Associates, FCM Journey Options, Company Traveller, Journey Cash NZ, Journey Managers Group and Govt Journey Group.
Flight Centre was severely impacted by the COVID-19 pandemic, which noticed a 80% decline within the firm’s share worth (or about 85% from the August 2018 peak), cancellation of a beforehand introduced dividend, and a suspension in buying and selling of shares from 23 March 2020 to 7 April 2020. In early 2020, Flight Centre introduced that 6,000 workers can be made redundant or positioned on unpaid depart globally, because of the results of worldwide journey restrictions within the pandemic. This included 3,800 workers in Australia. The New Zealand department of the corporate made 250 workers redundant and quickly closed 33 branches, out of a complete of 1200 workers and 140 retailers round New Zealand. In June 2020, Flight Centre introduced the redundancy of an additional 1500 workers. In October 2020, the corporate introduced the closure of an additional 91 shops, with a number of hundred additional redundancies.
In response to the pandemic, Flight Centre carried out an emergency rescue fairness elevating in April 2020 of $700 million at a worth of $7.20 per share, or roughly 90% lower than its August 2018 peak. In June 2020 it sought an additional debt facility from the Financial institution of England underneath emergency COVID-19 schemes.
In 2016, Flight Centre UK was featured on Channel 4’s Dispatches in an episode referred to as ‘The Fact About Low cost Flights’. Dispatches discovered alleged examples of undisclosed flight mark-ups, discriminatory pricing in opposition to aged prospects, not providing refunds for refundable flights, and seat-blocking. Whereas none of those practises have been deemed unlawful, Flight Centre obtained a number of situations of destructive press surrounding the allegations. Flight Centre’s response was that the programme was ‘not a good reflection of our firm tradition or buyer expertise’ and highlighted ‘remoted behaviour that’s in opposition to our firm insurance policies and ethics’, promising to consequently cope with the highlighted points.
In 2017, Flight Centre was criticised for promoting that it might worth match opponents after which insisting on charging a $49 charge when prospects tried to assert a worth match.
In 2018, Flight Centre was criticised for worth gouging, after former workers reported that the corporate skilled workers to intentionally overcharge prospects to generate revenue for the corporate. It was additionally reported that the bottom wage of journey consultants was under minimal wage, and workers relied on producing revenue by way of practices similar to these as a way to earn commissions. The corporate was the topic of an investigation by The 7.30 Report. In response to the investigation, greater than 200 workers contacted the ABC to report widespread bullying, harassment, drug use and a cult-like ambiance at Flight Centre.
Additionally in 2018, Stuff.co.nz printed copies of posters in Flight Centre workplaces which reminded feminine workers chosen for the annual “international” workers celebration to pack condoms and painkillers.
Through the COVID-19 pandemic, Flight Centre was criticised for preserving substantial quantities from refunds to buyer when suppliers failed to supply journey companies, claiming “cancellation charges”. Flight Centre later modified course to keep away from court docket motion following warnings from the Australian Competitors and Client Fee and customers that the follow was unlawful. Regardless of this, prospects waited months to obtain refunds. The corporate confronted additional controversy when it was reported that prospects who booked straight, somewhat than by way of Flight Centre, obtained refunds extra shortly and with out deductions, and that one in three prospects nonetheless had not obtained refunds six months later.
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- “Annual Studies”. Flight Centre.
- André Sammartino (2007), ‘Retail’, in Dick, H. & Merrett, D. (eds.), The Internationalisation Methods of Small-Nation Corporations: The Australian Expertise of Globalisation, Edward Elgar: Cheltenham, UK, pp.175–194.
- “StudentUniverse Acquired By Flight Centre Journey Group” (Press launch). Enterprise Wire. 21 December 2015.
- “Flight Centre buys BYOjet.com”. information.com.au. 21 December 2015.
- “Flight Centre wish to introduce you to Aunt Betty | SMH”. www.smh.com.au. Retrieved 5 August 2019.
- “Flight Centre Journey Group Restricted Share Worth & Data – ASX”. ASX. Retrieved 2 Could 2020.
- “Flight Centre Journey Group Cancels Interim Dividend” (PDF). ASX. Retrieved 2 Could 2020.
- “Flight Centre Journey Group Restricted (ASX: FLT) – Suspension from Official Citation” (PDF). ASX. Retrieved 2 Could 2020.
- “Flight Centre Journey Group Restricted (ASX: FLT) – Reinstatement to Official Citation” (PDF). ASX. Retrieved 2 Could 2020.
- “Flight Centre to face down hundreds of staff on account of coronavirus”. ABC Information. Retrieved 1 Could 2020.
- “Flight Centre lays off workers as coronavirus bites”. Stuff. Retrieved 12 April 2020.
- “Flight Centre kicks off pitch for $500m rescue elevating”. Australian Monetary Assessment.
- “Why Flight Centre wanted to boost capital – and quick”. Livewire Markets.
- “Flight Centre Journey Group to take up extra funding” (PDF). ASX.
- “The Fact About Low cost Flights: Channel Four Dispatches | Channel 4”. www.channel4.com. Retrieved 13 Could 2020.
- Okey, Regan (25 April 2016). “‘Workers name their boss daddy’ Flight Centre’s rip-off techniques uncovered”. Dailystar.co.uk. Retrieved 13 Could 2020.
- Wallop, Harry. “Six journey agent methods to be careful for once you e-book”. The Telegraph. Retrieved 13 Could 2020.
- Hope, Hannah (24 April 2016). “Main journey agent Flight Centre accused of dishonest prospects”. mirror. Retrieved 13 Could 2020.
- “Flight Centre refutes claims by Channel 4’s Dispatches”. www.travelmole.com. Retrieved 13 Could 2020.
- “Flight Centre to refund cancellation charges”. ACCC. Retrieved 9 Could 2020.
- “Flight Centre stops charging cancellation charges for journeys affected by coronavirus after stress from ACCC”. ABC Information. Retrieved 2 Could 2020.
- “Flight Centre prospects plan authorized motion”. Sydney Morning Herald. Retrieved 2 Could 2020.