Corporate Travel wins significant Australian government contract.

Corporate Travel Management secures major government contract

By Stuart Condie

Published: June 26, 2023 at 12:08 a.m. ET

Introduction

Sydney-based travel-services provider, Corporate Travel Management, has announced the successful acquisition of an accommodation and travel-management contract with the Australian government. The company believes this contract will account for approximately 20% of its fiscal 2024 revenue in its home region.

About the Contract

The contract, set to commence on July 1, is expected to run for an initial four years, with options to extend for an additional three years. While the financial details of the contract were not disclosed, Corporate Travel Management has described it as the largest travel program in Australia and New Zealand, known as the Whole of Australian Government travel program.

Impact on Revenue

Corporate Travel Management has forecasted that the contract will contribute around 30% of its total transaction value in Australia and New Zealand for fiscal 2024, solidifying its position as a leading player in the region. In the first half of the company’s 2023 fiscal year, it reported revenue of 290.9 million Australian dollars ($194.35 million) from a total transaction value of A$4.20 billion.

Conclusion

The accommodation and travel-management contract secured by Corporate Travel Management with the Australian government is expected to significantly boost the company’s revenue in the foreseeable future. With its robust track record and reputation in the industry, Corporate Travel Management is well-positioned to capitalize on this major agreement and further enhance its standing in the Australian and New Zealand markets.

Write to Stuart Condie at stuart.condie@wsj.com
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