Demand for holidays continues to buck wider consumer trends, On the Beach reported today (Tuesday).
The OTA and owner of B2B brand Classic Collection revealed total transaction value (TTV) growth of 10% for summer 2025 after a record year in 2024.
In a year-to-date trading update in advance of its annual general meeting, the company said it delivered TTV growth of 10% year-on-year, including winter 2024-25 up 18%.
“In addition to strong early bookings for summer ’25, group TTV of holidays scheduled to travel from March through to June is up 17% year-on-year, demonstrating that customer demand for holidays, from On the Beach in particular, continues to buck wider UK consumer trends,” the company said.
“On the Beach’s enhanced strategy, coupled with its asset light, low fixed cost operating model with no committed inventory to fill, naturally mitigates the wider inflationary macro pressures experienced across the broader sector, while allowing for competitive pricing to capture share in a growing market.”
Investment in technology enabled expansion the group’s strategy into city packages, with the offering scaling rapidly and now taking bookings to more than 70 destinations.
International expansion through the sale of package holidays from Ireland has also made “good progress” since launch, supported by a first targeted marketing campaign last month.
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“The current positive booking trends provide the group with confidence that summer ’25 will be significantly ahead of summer ’24,” On the Beach noted.
“As a result, the board is confident in delivering FY25 adjusted PBT [profit before tax] in line with the company compiled consensus.”
On the Beach clinched a “transformational” deal with Ryanair a year ago, authorising it to offer the budget airline’s flights as part of its holiday packages.
Chief executive Shaun Morton said: “I am pleased to report double digit group TTV growth with new and existing customers trusting On the Beach to help them holiday better and reflecting the strength and breadth of our holiday proposition.
“I am really excited by the progress we have made following the recent launch of our strategic growth initiatives focused on selling city packages and package holidays from the Republic of Ireland.
“Demand for cities has been strong with routes to Amsterdam, Paris and Krakow proving particularly popular with both existing and new customers.
“Similarly, our first marketing campaign in the Republic of Ireland has generated strong bookings growth across both city and beach.
“The success of these early-stage strategic initiatives combined with the growth in our core beach proposition give me the confidence that summer ’25 will be significantly ahead of summer ’24 and the group will deliver FY25 adjusted PBT in line with market expectations.”
