On the Beach poised for ‘biggest summer ever’ thanks to Ryanair deal

“Looking ahead, the summer ’24 forward order TTV is currently ahead of last year which, coupled with our continued trading momentum since the half year, means we are confident of delivering our biggest summer ever.”

In the six months up to 31 March, the OTA posted adjusted earnings before tax, exceptional items, share based payments, depreciation and amortisation of £8.1 million – 93% up on last year’s levels – as group profit surged 15% to £58.8 million.

And revenue jumped 11% to £80.8 million following a 15% increase in passenger bookings as well as in the average value of holidays sold.

“TTV was up 22% as we saw strong growth across both volume of bookings and the average value of holidays sold,” Morton added.

“Our customers are favouring our premium and long-haul beach holidays, whilst making the most of our enhanced customer perks.”

The premium market has been performing strongly, with On the Beach reporting a 41% year-on-year growth,  while long-haul has outperformed all other segments. On the Beach’s long-haul’s TTV increased 61% against 2023 levels.

However, On the Beach’s B2B offerings have nevertheless struggled to perform in an increasingly competitive market, forcing the OTA to combine Classic Collection and Classic Package Holidays under a single B2B sales brand.

Classic Collection’s TTV slumped 12% compared to last year, while its gross profit dropped from £2.4 million in 2023 to £2.1 million this year.

“The high street remains an extremely competitive market for B2B sales, which has contributed to a reduction in bookings of 6% on a travelled basis since the prior year,” On the Beach said.

cThis has driven the need for a strategic review and conclusion that a simpler operating model is required to serve the B2B market.”

Before the announcement that Classic Collection and Classic Package Holidays would be combined under a single B2B brand, On the Beach revealed Classic Collection chief executive Andy Freeth and product and commercial director Alex Gavalda had left the company. 

An On the Beach Group spokesperson said: “This was not an easy decision, and we will be providing full support to those affected, both personally and professionally. They are our priority over the coming weeks.

“We remain committed to continuing the growth and supporting the trade with the service and product that they’ve come to expect.”