1.

Overview of Flight Centre Travel Group

Flight Centre Travel Group (FCTG) is one of the world's biggest travel companies, operating in
four major areas: Australia and New Zealand, the Americas, EMEA, and Asia. In addition to
being named Australia's greatest employer twice, the company has won a variety of other
employment and travel agency honours in Australia and abroad. The Flight Centre Travel Group
is based in Brisbane, Australia, and operates vacation and corporate travel businesses in 24
countries, including Australia, the United States, New Zealand, South Africa, Europe, the United
Arab Emirates, the United Kingdom, and Asia (Flight Centre Travel Group, n.d.).

Flight Centre Travel Group Limited is primarily a travel agency organisation. Flight Centre is
well-known for its ability to book flights for travellers. They can help you book flights for many
airlines and destinations, with options for all budgets and preferences. Aside from flight
bookings, the firm's travel-related businesses offer a wide range of products such as lodging,
holiday packages, cruises, hotel & resorts, auto rentals, travel agents group, meetings & events,
and discova. FCTG aims to be the world's most profitable corporate travel company by 2030,
with operations across over fifty nations and 70,000 workers over the world. And by 2030, the
FCTG will be generating great outcomes in a variety of areas, including travel, bicycles, health,
education, foreign exchange, and banking (Forbes Magazine, n.d.).

FCTG is up against numerous main competitors operating in the same field. Expedia Group,
American Express Global Business Travel, and Booking Holdings are among its primary
competitors (Clarke, 2023). Expedia Group provides a comprehensive online travel booking
service to a wide spectrum of travellers looking for flights, lodging, and vacation packages.
Similarly, Booking Holdings provides a number of booking sites for both pleasure and corporate
travellers, including Booking.com, Agoda, and Priceline. American Express Global Business
Travel focuses on corporate travel, offering complete travel management solutions to
organisations and their workers (Anon, 2021).
 2. The current pricing strategies of Flight Centre Travel Group

Unlike a lot of businesses in the sector, FCTG sells their goods so that it is affordable and
worthwhile to make the trip (Oliver & Schoff, 2017). The company has adopted a proper pricing
strategy since its inception, and it is one of the major causes in its success. FCTG employed the
Skimming pricing technique, which analyses all travel expenditures such as transport, hotel
expenses, resources consumed, time spent, and so on. This pricing model ensures that FCTG
makes a profit on each sale of tourism-related goods to its consumers. Skimming pricing is a
pricing technique that involves initially charging a high price for a good or service and then
dropping the price over time (Marburger, 2015). FCTG employed this pricing strategy to gain a
competitive edge by launching an additional travel package or service that includes unique
features, luxurious accommodations, personalised services, or restricted access to specific
destinations or experiences. This premium service is designed for travellers who are happy to
pay a premium for a one-of-a-kind and high-quality vacation (Yuan et al., 2022). FCTG sets a
high starting price when offering this premium trip package. This initial price allows the
company to collect income from clients who are anxious to try the new item but are put off by
the high price. The premium travel package's price is steadily reduced by the corporation over
time.

FCTG also employs Geographic Pricing. Geographical Pricing varies rates based on the
customers' geographical location (Marburger, 2015). Due to differences in purchasing power and
regional market situations, FCTG offers varied prices to consumers in different countries. For
example, the travel industry in Australia is a seasonal one, with peak seasons for tourists visiting
the country. In order to remain competitive during the off months, FCTG employs a markdown
pricing strategy. FCTG provides holiday bargains and packages to domestic tourists at a
reasonable cost during off-season, when the cost normally remains low because it is not a
beneficial period for travellers. FCTG employs this tactic by charging a pretty typical pricing for
their luxury cruise bundles for North American customers. This pricing could reflect the region's
average purchasing power and create an appealing offer for clients ready to pay for a luxurious
travel experience. To attract potential customers in the Asian market, where luxury travel has
grown increasingly popular, the company employs a more competitive price strategy. They offer
a slightly cheaper price than other locations in order to gain a larger market share and drive
demand (Cook & Billig, 2017).

3. Pricing strategies that Flight Centre Travel Group could implement in the future

Flight Centre may provide bundled packages which consist of flights, lodging, and other services
at a lower combined price than the separate rates. Customers may be encouraged to book
numerous services through Flight Centre, increasing the overall value of the purchase
(Hennecke, 2019). Customers will be able to customise their travel vacations, allowing them to
determine the total cost of a complete package that includes airfare, hotel, tours, and other
activities. This price strategy also contributes to satisfying the needs of specific markets. Tourists
interested in rafting, bungy jumping, zip lines, or canyoning, for example, may be offered
package deals. This price plan is also appropriate for domestic tourists. FCTG can harness every
potential of their inventory and create higher income while remaining appealing to an extensive
variety of customers by optimising pricing strategies based on demand variations, competition,
and customer preferences.

By modifying rates based on real-time market conditions, dynamic pricing can provide FCTG
with a competitive advantage. Dynamic pricing is a technique for calculating a product's price
based on the present market circumstances (Hennecke, 2019). Prices fluctuate in real time based
on current situations, customer booking patterns, competition patterns, and even weather and
popular events occurring in arrival or destination locations, all of which can directly impact
product demand and necessitate price modifications to optimise profitability. This strategy is
especially beneficial for products with features such as product expiry date, indicating that they
may miss value over time, and their capacity is limited, so they cannot be enlarged to fulfil rising
demand.

4. Outline the current channels used by the Flight Centre Travel Group to distribute
its products

FCTG's distribution strategy for travel and tourist items consists mostly of intensive distribution,
limited distribution, and direct selling. Because the company's product is intangible, the internet
has proven to be the most effective channel of distribution. FCTG's primary distribution
technique is direct distribution. Direct distribution is a distribution strategy in which the product
is sold directly to the customer. FCTG distributes travel products and services to clients directly
through retail locations, online applications, internet pages, e-commerce, and computer
reservation systems. As we contact directly with clients, this distribution model allows us to have
complete market dominance. FCTG may profit from direct selling via the internet because it is a
firm that is heavily focused on making use of technology and modern systems. The evolution of
technology has altered the manner in which customers and travel companies communicate and
trade. In addition, HyperGuest (2023) has highlighted four other techniques of direct selling that
the tourist industry can utilise in order to promote direct selling and communicate with
customers: telephone conversations, credit card use, call centres, and customer loyalty
programmes.

FCTG also employs intensive distribution. It is a distribution strategy that employs all feasible
distribution channels for product distribution. Product distribution can be accomplished by
utilising local travel agencies, hotels, visitors information centres, ecommerce, websites, and
social media platforms. Intensive distribution techniques can be more advantageous during off-
seasons when business is sluggish and we can provide packages and vacations to domestic
clients at a reduced cost.

5. Emerging distribution trends and the impact on the Flight Centre Travel Group’s
product distribution strategies

A multichannel strategy to improving the user interface is required so that FCTG's consumers
may book or purchase vacation packages and tickets regardless of where they are or what device
they are using by utilising innovative systems and technology (Sotiriadis, 2018). Because FCTG
is a travel company, its consumers are not geographically limited, and the company must be
willing to serve customers living in countries other than Australia. As an agency, they will have a
competitive advantage over other competitors, and FCTG will be able to focus on introducing
innovative products and services.
Mobile apps have become crucial tools for travellers in the modern era, allowing users to
research, schedule, book, and handle their journeys while on the go. Furthermore, there is a
rising emphasis on personalization, in which travel firms use data and technology to provide
personalised recommendations as well as experiences based on travellers' tastes and past
behaviour. Travel agencies, such as FCTG, may invest in developing mobile apps and advanced
data analytics to provide personalised recommendations and trip plans, hence increasing client
retention and satisfaction.

Virtual Reality (VR) and Augmented Reality (AR) are two new distribution trends that are
influencing today's travel firms. Travel agencies are using virtual and augmented reality
technologies to provide immersive trials of destinations, lodgings, and events, allowing travellers
to "experience" a place before making a booking (Sotiriadis, 2018). FCTG may be looking into
VR and AR solutions to improve the customer experience by offering a more thorough and
interactive perspective of their items, resulting in more engagement and bookings. FCTG, for
example, might develop virtual reality tours of major vacation locations, resorts, hotels, and
attractions. Potential travellers can research destinations and hotels from the comfort of their own
homes, allowing them to make more informed decisions regarding their travel plans. AR can also
be used to build interactive maps that overlay digital data on top of the actual environment.
While exploring a new city, FCTG may give travellers with AR-enabled maps that show spots of
interest, eateries, and local attractions.
 References

Anon (2021) 2020 Business Travel Market Growing Trends with 4.9% of CAGR by 2027 -
Direct Travel, Expedia Group, Fareportal, Flight Centre Travel Group, Travel Leaders
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Clarke, P. (2023, June 26). The top 20 most powerful travel agencies in 2023. TravelPulse.
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Cook, & Billig, B. G. (2017). Airline Operations and Management : A Management

Textbook. Taylor & Francis Group.

Flight Centre Travel Group. (n.d.). About. https://www.fctgl.com/about

Forbes Magazine. (n.d.). Flight Centre Travel Group | Company Overview & News. Forbes.
https://www.forbes.com/companies/flight-centre-travel-group/

Hennecke, I. (2019). Implementing a structured pricing strategy approach. Pricing Strategy

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HyperGuest. (2023, July 26). How distribution is evolving for the hospitality industry.
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the-hospitality-industry

Marburger. (2015). Innovative pricing strategies to increase profits (Second edition.). Business
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Oliver, & Schoff, P. (2017). Agency and Competition Law in Australia Following ACCC v
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