Value Investor: Flight Centre faces headwinds

A structural shift towards online booking platforms is threatening Flight Centre's core business. Its long-term sustainability will depend on its ability to adapt and execute its international growth strategy.

Flight Centre (ASX: FLT) is a high quality business that continues to deliver record performance despite challenging economic conditions and increasing competition from international online travel services.

Though Flight Centre's sales have been reasonably defensive through the cycle, the June trading update highlights it is not immune to weak consumer sentiment, which has plagued Australian retailers post the May budget.

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