The Advantage Travel Partnership has reported a pre-tax net profit figure of £1.3 million for 2023/24, a 12% increase on the previous year and a new record for the group.
The net profit, up from nearly £1.2 million, came on the back of total global sales turnover of £17 billion, of which £8.8 billion came from UK members – £6.3 billion from business travel and £2.5 billion from leisure.
Transactional turnover increased to £155 million, up from £116 million in the previous year.
Advantage chief executive Julia Lo Bue-Said hailed “outstanding” financial results, adding that they built a “robust platform” for the group to consider future strategic investments.
She noted that the Advantage Managed Service division’s turnover of £155 million represented 33% year-on-year growth.
She added: “In a business environment that continued to present economic challenges through pressure on consumer spending and inflationary pressures, our members demonstrated remarkable resilience and growth, with many expanding their operations into new locations, capitalising on positive market conditions and proving the strength of our partnership model.”
The consortium first revealed its global turnover growth at its annual conference, when it also confirmed its UK membership had added 50 branches over the course of the year.
Advantage chair Steven Esom described 2024 as a “watershed year” for the outbound travel industry, calling it “our first true return to normality since the pandemic”.
He said: “Despite challenges including political uncertainty, air traffic control strikes, extreme weather events and ongoing cost-of-living pressures, our industry demonstrated remarkable resilience and adaptability.
“The sector’s performance amid economic headwinds was particularly noteworthy, with UK outbound travel emerging as a leader in consumer spending, outperforming many other service sectors.
“This trend underscores a fundamental shift in consumer priorities – even under severe budget constraints, both leisure and corporate travel remain essential expenditures, with family holidays proving non-negotiable and corporate managed travel programmes seeing solid growth.”
The UK membership’s turnover figure of £8.8 billion represented a 16% increase year on year, he said.
He described the acquisition of financial insurance brand Cork Bays and Fisher as a “significant milestone for the partnership”, adding: “This strategic move has strengthened our financial services division and provided opportunities to grow our underwriting capability.”
Looking ahead, he pointed to continuing geopolitical uncertainty and economic headwinds.
“While inflation has moderated, consumer spending remains under pressure,” he said.
“In the UK, our members face mounting operational challenges from increased staffing costs and higher National Insurance contributions, creating complex decisions around cost management and profitability.
“Advantage enters the future from a position of continued strength, committed to enhancing member benefits through our integrated one-stop-single-stop approach.”
Lo Bue-Said added that the partnership continued to “trade well” across its core business areas.
“Despite the current economic headwinds, our strategic clarity and team commitment give us confidence in our ability to navigate these challenges and emerge even stronger,” she said.
