On the Beach Group (LSE:OTB) shares jetted 14.5% higher to 134.44p after the online tour operator reported profits ahead of forecasts and a record forward order book.
Adjusted profit before tax (PBT) of £23.6 million was well ahead of expectations, with City analysts on average forecasting nearer £20 million.
With total transaction value (TTV) rising 26% to top £1 billion for the first time in the year to end-September, as the company revealed in the autumn, revenue rose 19% to £170.2 million.
Chief executive Shaun Morton said On The Beach "differentiated ourselves from other mainstream holiday companies as the first to offer free lounge and fast track on bookings and this continues to grow customer satisfaction".
He added: "This year we have seen the majority of consumers protect - not sacrifice - their holiday, a trend that our research shows will continue."
Momentum going into the new financial year sees TTV up 26% for the first nine weeks of the 2024 financial year and bookings for this winter up 34%.
Broker Stifel said: "FY23 has closed out well, with PBT ahead of expectations, and TTV bookings for FY24 look strong."
The City consensus is for £29 million PBT for 2024 and the analysts said "while booking momentum looks supportive of these expectations, we await the presentation to understand what level of investment is expected to support top-line growth, and implications for profitability".
Stifel has a 'sell' rating however, as the analysts said they "find it difficult to model OTB forecasts with much conviction given highly variable marketing costs (the main driver of revenues), a lack of control over holiday content and a range of strategic initiatives with varying business models and revenue accounting".
Moreover, the competitive environment "seems to have become tougher (easyJet push into holidays, Love Holidays growing faster, Jet2 market share momentum, TUI strategic pivot to dynamic packages) in a tighter flight capacity environment".
The shares sank to all-time lows below 90p in July and August, down 56% from recent peaks in January and even further from pandemic highs near 500p.