Graham Turner: Flight Centre

Rising fuel costs are a concern, as is the credit crunch, but Turner says FCL remains largely unscathed so far. Even so, such shifts in the industry means that Flight Centre needs to be constantly evolving and building on the brand promise. “We’re going to continue to strengthen the wholesale, retail, and corporate arms of the business,” he says. He is excited about venturing into the recruitment industry and other retail projects that stick to the Flight Centre principles.

The next five years or so for Turner will be committed to growth on an organic basis and development of new industries: “As long as the board is happy with me!”

And like all good entrepreneurs, despite the earlier failed privatisation option, Turner has further succession plans in mind, not that he’s revealing too much at this stage. “I’ve always been really good at forward planning, and I do have some other interests.” There’s the interest in farming and he and his wife own some small resorts, which he says will keep him pretty busy when life at FCL comes to an end.

But until that day comes, with the shareholders to keep happy there’s still plenty to keep him going within the empire. “With sales of $11 billion, growth at 10 or 15 percent a year is challenging!”

Turner’s Tips

1. Be very aware of your cash flow—and be conservative. “Since the early days, even before having to answer to a board, I was very conservative with spending.”

2. You’re only as good as the people working around you. “Give them the latitude to make decisions and make mistakes on their own.”

3. Make sure your staff are rewarded.

Skroo’s guide to planning

Have a brief, broad direction for the business, broad goals and plans to achieve them. It should all fit on one page—so it should be definitive, but brief, and reviewed on an ongoing basis.

Turner’s 2008 resolutions

“After a good year in 2006/07, growth will again be a priority for Flight Centre Limited during 2007/08.

“The company will seek to expand its retail, corporate, and online footprint globally through shop and business openings, while also exploring new product offerings and diversified revenue streams, which may see the company transfer its proven retail model into different businesses.

“Other priorities will include continued development of Flight Centre Limited's customer and product strategy and fine-tuning of the company's bricks and mortar friendly web strategy.

“The company will continue to pursue strategic acquisition opportunities in Australia and overseas to fast-track development in some important markets and sectors.

“Generally, I believe that 2008 will deliver some significant benefits to Australian travellers. Positive factors include the buoyant economy, the strong dollar, the arrival of new carriers like Etihad, Air Asia X, Viva Macau, and Tiger and increased capacity from many of the established carriers.”