Flight Centre: Flying from COVID-19 to Inflation Challenges

Flight Centre Travel Group (FCTG), a leading global travel agency based in Australia, faced unprecedented challenges during the COVID-19 pandemic. Known for its extensive network of physical stores and diverse travel services, FCTG experienced severe disruptions due to global travel restrictions and reduced demand. In response, it implemented a strategic transformation, focusing on digital enhancement, cost reduction, and securing additional liquidity. The company streamlined its operations, invested in technology, and formed strategic partnerships to adapt to evolving consumer behaviours. By diversifying its service offerings and making strategic acquisitions, FCTG positioned itself for recovery and growth in the post-pandemic travel industry. However, as international and domestic travel began to recover after 2023, new challenges emerged in the form of persistent inflation and rising living costs. FCTG now faced the question of how to maintain its competitive edge and expand its business while navigating these economic pressures, prompting a re-evaluation of its strategies for sustainable growth amid a rapidly changing market landscape.

This case is ideal for strategic management and entrepreneurship courses at both undergraduate and graduate levels, focusing on Flight Centre Travel Group’s (FCTG) business model evolution, crisis management, digital transformation, and competitive strategy in the travel industry. It examines FCTG’s response to industry disruption and the challenge of balancing short-term crisis management with long-term strategic growth in volatile markets. Students can explore the company’s adaptation to market changes and propose future strategies, gaining insights into strategic leadership and innovation in the face of global upheavals. After working through the case and assignment questions, students will be able to do the following:<br><br><ul><li>Learn how companies adapt their business models in the face of industry disruption.</li><li>Understand digital transformation in traditional industries.</li><li>Consider how a business can manage growth and expansion in a volatile market.</li><li>Understand the importance of balancing short-term crisis management with long-term strategic vision.</li></ul>

• flight centre
• travel agency
• corporate travel
• digital transformation
• crisis management
• cost management
• business model
• market adaptation
• competitive strategy
• strategic partnerships
• strategic growth
• inflation impact
• consumer spending
• travel industry
• volatile economy
• volatile markets
• undergraduate courses
• graduate courses
• entrepreneurship education
• customer experience.