Travel management company CTM has seen a “rapid rebound” for travel demand in the UK with the easing of Covid-19 travel restrictions.
The Australian-based company said the UK and North American markets were seeing a strong recovery in client activity in February, as it announced its half-year results.
Debbie Carling, CTM’s Europe CEO, said: “The UK is leading the way in removing restrictions, which is the strongest forward indicator of a recovery in client activity, and domestic travel is recovering quickly.
“Our revenue rebound shows that clients support our model of personalised service and proprietary technology which helps them to navigate the current complexities of the travel environment. This is translating into new client wins and strong revenue momentum.”
CTM said its revenue in Europe rose by 229 per cent year-on-year to AU$43.8 million (€31 million) for the six months to 31 December 2021, despite the impact of the Omicron variant of Covid-19 at the end of the year.
The TMC added that the contract from the UK government to manage inbound quarantine hotels and Covid test kit sales were “key contributors” to this increase, which allowed CTM’s European division to make an “underlying” profit of AU$19.6 million (€12.4 million) for the six-month period.
CTM added that it expected to further benefit in February and March from clients in the UK and Europe returning to working in offices as the Omicron wave subsides and restrictions are lifted.
“While the Omicron Covid-19 variant reduced travel activity from November 2021 to January 2022, CTM currently expects a significant ramp up in activity in regions where travel restrictions are relaxed or removed,” said the company in its financial update.
The group stated it would continue to “assess acquisition opportunities” to further boost its growth. CTM acquired Travel and Transport in September 2020, as well as the Australasian corporate and entertainment businesses of Helloworld in December 2021.
CTM managing director Jamie Pherous added: “The strategic acquisitions we made during the pandemic have transformed CTM into a much larger business with greater exposure to the North America market which, along with the UK market, is rebounding sharply.”
The company’s revenue rose by 120 per cent year-on-year to AU$163 million (€103 million) in the half-year to 31 December 2021. CTM’s operating loss also narrowed from AU$47.5 (€30 million) million in 2020 to AU$11 million (€7 million) in 2021.