On the Beach: 'Our B2B brands can disrupt the tour operator space'
Ilaria Grasso MacolaOn the Beach is hopeful of "deepening" its relationship with high street agents and homeworkers, and believes its B2B brands can disrupt the tour operator space.
Chief executive Shaun Morton told TTG there would always be room in the market for independent agents, despite the online-led B2C model on which the brand has been built over the past 20 years.
It follows its acquisition of Classic Collection Holidays in 2018 and the subsequent launch of its stripped-back Classic Package Holidays brand.
“We believe there is certainly a place for people wanting to buy from high street shops or from a homeworking travel agent,” said Morton on Tuesday (5 December) shortly after On the Beach revealed record transactional value for the year to 30 September of £1.1 billion.
On the Beach group’s revenue, meanwhile, increased by 18.7% to £170.2 million, while adjusted profit before tax came in at £23.6 million.
The OTA said its results were mainly driven by the long-haul and premium segments, which by 74% and 32% year-on-year respectively. Despite its trade ambitions, though, the group said its B2B segments experienced “slower than expected” growth due to increased competition in the trade market.
Full-service tour operator Classic Collection Holidays’ trebled its operating loss to £1.3 million while its online-only Classic Package Holidays platform reported an operating profit of £100,000, up from last year’s £300,000 loss.
“These businesses have got such huge potential,” Morton continued. “We firmly believe we can disrupt that space because we’re not attached to a particular airline or hotel. We can present to a travel agent millions of holiday combinations that others aren’t able to do.”
Morton said On the Beach would continue building relationships with agents by sponsoring major agent consortia events, as well as by offering fam trips and competitions to agents. The group will also continue hosting both its Classic Collection Holidays and Classic Package Holidays’ awards.
“As well as serving the end customer very very well, we provide the highest possible service to agents, delivering products they want to sell to customers,” Morton added.
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Place of registration: England and Wales.
Company number 08723341.
Registered address: 6th Floor, 2 London Wall Place, London EC2Y 5AU
