Online package holiday specialist beats the wider travel market and forecasts profit growth of up to 55% next year
On the Beach has reported a jump in bookings that has left it well ahead of the wider travel market, as British holidaymakers keep booking sun despite a squeeze on household budgets.
The online package holiday specialist said bookings rose 9% over its financial year to 30 September, with total transaction value up 6% to £1.3 billion, a fifth straight record.
Momentum has carried into the new year, with bookings over the past eight weeks up 17%.
That confidence prompted the company to set out bullish guidance for the year ahead.
It expects adjusted pre-tax profit of between £28 million and £35 million in its 2027 financial year, growth of roughly 25% to 55% on this year.
For the year just ending, the group expects adjusted pre-tax profit of £22 million to £23 million, landing in the top half of its guidance range.
The Manchester-based firm, which sells beach holidays, city breaks and cruises through its own technology platform, said summer trading strengthened as the season went on.
Bookings for the summer ended 4% ahead of last year, a marked recovery from being 1% behind at the halfway stage in May, reflecting a sector-wide shift towards shorter booking lead times.
Repeat business is building too, with bookings from returning customers up 18%.
The balance sheet looks robust.
On the Beach ended the year debt-free with around £60 million of cash, having handed back about £67 million to shareholders through dividends and three buyback programmes over the past two years, equivalent to 15% of its shares.
Chief executive Shaun Morton credited investment in technology, a broader range of holidays and the brand for the share gains, though the company remains wary of the conflict in the Middle East and the strain on UK consumers.
Full-year results are due on 1 December.
