Travel agents ‘unaffected’ by Classic Collection shake-up – On the Beach
Ilaria Grasso MacolaTravel agents will be “completely unaffected” by On the Beach’s decision to consolidate Classic Collection and Classic Package Holidays into a single B2B brand.
Chief executive Shaun Morton today (14 May) told TTG the restructuring will make operations more effective, allowing the OTA to offer the same product but “more efficiently and for better value to the trade”.
On the Beach’s B2B brands have struggled to perform in an increasingly competitive market over the past few months, with Classic Collection reporting a 12% slump in total transaction value while its gross profit dropped from £2.4 million in 2023 to £2.1 million this year.
The restructuring also led to the departure of chief executive Andy Freeth and product and commercial director Alex Gavalda, with On the Beach confirming additional job losses.
“We’ve been through a consultation process with our people that has only concluded very recently and it will be reported to our staff this week,” Morton said. “We’ll make sure the right information gets to the right people.
“Travel agents and trade teams will be completely unaffected by any of the changes.”
However, Morton remains confident the B2B segment can still disrupt the UK market.
“By giving access to our holidays and our platform, travel agents have an additional option and that is good for the industry and for customers,” he added.
“Travel agents will book holidays if the commercials work for them and if the product is good – these are the two things we focus relentlessly on.”
Morton’s comments come as On the Beach is set to deliver its “biggest summer ever” after posting a group profit of £58.8m and earnings before tax, exceptional items, share based payments, depreciation and amortisation of £8.1 million – up 93% on last year – in the six months up to 31 March.
According to Morton, the OTA will thrive this summer thanks to continued trading momentum and its recent partnership with Ryanair, which has seen the company start selling Ryanair flights and ancillaries four months after suing the carrier over Covid refund chargebacks.
“Rather than letting a judge decide how we should work together, we’ve got around a table and come to an agreement that works for us, them and the customers,” Morton concluded. “It’s really positive news for us and the industry.”
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Ilaria Grasso Macola
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