The Flight Centre Travel Group Ltd (ASX: FLT) share price enjoyed another day of outperformance on Tuesday.
Shares in the S&P/ASX 200 Index (ASX: XJO) travel stock closed the day up $2.7%, trading for $21.54 apiece. That compares to a 0.2% gain posted by the benchmark index.
With another strong day in the bank, Flight Centre shares are now up an enviable 50% so far in 2023.
That's a great run for this ASX 200 travel share. Yet even after this charge higher, shares are still trading 40% below their 2020 pre-COVID times.
But that pre-pandemic level could still be within reach.
What tailwinds could be ahead for the Flight Centre share price?
High inflation?
Rocketing interest rates?
A looming recession?
Pshaw!
Many investors have lost sleep over these types of concerns. But that hasn't stopped the Flight Centre share price from charging ahead this year.
Among other factors, the company has been benefiting from a strong and sustained rebound in business travel. According to Corporate Traveller, a division of Flight Centre, travel demand from small and medium-sized enterprises (SMEs) in the first five months of 2023 was 25% higher than in the first five months of 2022.
And the same tailwinds that have helped the company's outperformance year-to-date could continue to support the Flight Centre share price into 2024.
In fact, Corporate Traveller global managing director Tom Walley expects business travel demand will continue to pick up pace.
According to Walley (courtesy of The Australian):
We expect that businesses travel will continue to step up a notch even more in the months ahead.
The assumption is that as capacity returns to and exceeds pre-COVID levels then airfares will fall and that would allow businesses to keep up their travel schedule for less.
In another potentially positive signal for the Flight Centre share price, Walley highlighted that businesses are eager to return to in-person meetings following several years of virtual face time amid the pandemic travel restrictions.
"Initially, we thought that the surge in travel demand last year was a sugar rush," he said. "But it has gone from strength to strength with businesses viewing it as a necessity to winning over clients and attracting talent."
Walley added:
COVID has also changed the way corporates travel with flexible working driving a swing towards 'bleisure' travel where people are looking to add a couple of days onto their itinerary for leisure.
