This year has been a tough one for the Flight Centre Travel Group Ltd (ASX: FLT) share price. The stock has been weighed down amid its soaring short interest and revenue margin concerns.
Meanwhile, however, the company's business has picked up. And leading its recovery is, well, business.
The travel agent's corporate travel business has outperformed recently, recording record total transaction value (TTV) in September and October as its monthly revenue nears pre-COVID levels.
Global managing director of Flight Centre's Corporate Traveller division Tom Walley believes such trends with continue in 2023. Indeed, the insider is hopeful corporations might even implement policies to encourage business travel in the new year.
Right now, the Flight Centre share price is $15.35. That's 18% lower than it was at the start of 2022. For comparison, the S&P/ASX 200 Index (ASX: XJO) has fallen 5% year to date.
In more good news for Flight Centre fans, Walley isn't alone in his bullishness. One fundie is also tipping green skies for the travel favourite.
Eyeing Flight Centre shares? Here's what 2023 could bring
Fans of Flight Centre shares have likely suffered a disappointing 2022. Fortunately, things might be looking up for the ASX 200 company.
Walley commented on what he expects from its corporate business in 2023, saying:
Flight Centre's corporate divisions, including Corporate Traveller, recovered healthily in the 2022 financial year.
From next year, I'm forecasting the business travel industry will continue capitalising on its post-COVID growth and success as businesses and their employees gain more confidence to return to the office and the skies.
Such hopes might have inspired confidence in fundies.
Evans & Partners recently initiated coverage of Flight Centre shares, labelling the stock positive, The Australian reports.
What else might the travel industry face in 2023?
Beyond the company itself, Walley tips Aussie airfares to plateau then fall next year, driven by Regional Express Holdings Ltd (ASX: REX)'s entrance in the East Coast's 'golden triangle'.
International airfares, however, might not ease until Chinese carriers return to the skies. The insider thinks that will occur in the first half, with capacity reaching 90% of pre-COVID levels by the middle of the year.
Walley also tips business travel to return for middle management in 2023 while businesses are expected to book travel further in advance amid fewer COVID concerns.
Finally, Walley expects more 'work from anywhere' policies will encourage executives to take working holidays to meet other teams. The policies will likely double as a bid to retain talent amid a tight labour market, he says.
