CTM: N. America a 'Highlight' Amid 'Transitional' Revenue Decline
Corporate Travel Management reported a 6 percent decline in revenue and other income in the first half of its 2025 fiscal year, which managing director Jamie Pherous said is a "transition year" for the travel management company—though Pherous said...
FrankLin
Corporate Travel Management reported a 6 percent decline in revenue and other income in the first half of its 2025 fiscal year, which managing director Jamie Pherous said is a "transition year" for the travel management company—though Pherous said North America was a "highlight" during the six-month period that ended Dec. 31
Revenue and other income for the period, which ran from July through December 2024, totaled A$342.8 million (US$217.6 million), a decline from A$363.7 million (US$230.8 million) in the first half of the 2024 fiscal year. Revenue declined in Europe and Asia but was up in North America and the Australia/New Zealand region, CTM reported.
In North America, revenue increased 6 percent year over year to A$159.9 million (US$101.5 million) during the half-year. CTM credited the increase with a "rapid uptake" of its Lightning online booking tool among new customers. Pherous said that should continue, as Lightning "is getting good traction, but it has a long runway to go" in North America.
In Europe, revenue decline was 43 percent year over year to A$56.5 million (US$35.9 million), which CTM said stemmed from the ending of one-off war-related project work in the 2024 fiscal year, with reduced spending by the U.K. government also a factor. CTM projects stronger performance in Europe in the back half of the fiscal year with "record new corporate client wins" and its appointment as the U.K. government's sole provider for Lot 1 travel TMC services, which includes crisis response travel. That previously was handled by a panel of three TMCs, Pherous said.
Australia and New Zealand saw the sharpest half-year revenue increase for CTM, up 18 percent year over year to A$96.1 million (US$61 million). CTM said the region benefitted from both new client wins and returning customers as well as the rollout of its Sleep Space hotel content engine. Sleep Space to date has rolled out only to the Australia/New Zealand region and will be expanded across the rest of CTM's network "in the coming months," Pherous said.
In Asia, CTM's revenue declined 7 percent year over year to A$30.1 million (US$19.1 million) during the half-year. While CTM has won new clients in the region, it also is facing "material price deflation," including a decline of about 25 percent year over year in ticket prices, Pherous said.
