Ann: FLT FY19 Half Year Results Release, page-22

I’m like you. However Flight Centre is just one of the many businesses they run.

I, like you, didnt understand the business proposition of Flight Centre, Webjet, Corporate Travel.

However after following the companies for several reporting seasons and after gaining some life experience in making several complex long haul bookings for very pedantic travelers, I soon learned that there are certain advantages that these companies have.

Also a lot of money is made on hotel bookings, tour bookings, car rentals, local experiences, all these are also great money makers.

My advise is to read up on the company and follow them for 3-4 reporting seasons. Then you’ll understand that these companies aren’t helping mum and dads book a simple return journey from Sydney to Honolulu. Anyone could do that. No, they profit off a variety of other things. What are they? Take some time to read several reports, and you’ll find out.

I was a convert after following the travel industry since 2015. Initially a skeptic, but now I’m so much more knowledgeable (and richer) thanks to these companies! 

Travel has has a massive tailwind behind them right now, with the rising middle in growing economies, instagrammers, millennials wanting to travel so much more rather than being tied down to a mortgage and kids, and retirees, boomers now in their golden years wanting to travel, the worlds global businesses requiring travel to conferences and meetups and trade shows. Everyone is travelling now.

An easy metric to monitor the travel industry is to look at the state of airports around the world. If they’re growing, adding more capacity, hotels popping up everywhere (despite AirBnB being hugely successful in their own right) , then what does that say about tourism and travel? Everybody’s doing it!