Travel Agents

“Too early to predict”: Corporate Travel Management assesses impact of coronavirus on business

Corporate Travel Management (CTM) says it is “too early to predict” the duration or full impact of the coronavirus on its business activity in China and overall revenue and profit.

However, the company reassured investors the immediate impact is “minor” due to a number of factors.

“For the largest three regions of profit generation, being Australia/New Zealand, UK/Europe and North America, the number of transactions for travel to and from Greater China including Hong Kong is small as a percentage of total transactions generated by these regions,” it said in a statement.

“The Asian region is currently in Chinese New Year holidays. This period is historically the quietest time of the year for corporate activity in Asia.”

CTM also noted that nearly all of its Asian staff are based in Hong Kong and Singapore where most are on Chinese New Year annual leave, before returning on Monday 3 February.

“CTM continues to support our staff and, as a precaution, all skeleton staff in Greater China not on leave have been advised to work from home.”

The statement said the company’s management is monitoring the situation closely and, if necessary, will provide an update on the situation as part of its forthcoming half-yearly results announcement on 19 February.

Image: iStock/Spondylolithesis