Online travel agent On the Beach Group (LSE:OTB) shares tumbled 10% as it reported tough trading at the package holiday end of the market.
OTB still expects a record summer for bookings, but said the value market is “challenging” at present with just 1% growth year-on-year and all of its growth coming at the premium end.
In the six months to end March 2024, holidays booked (TTV) rose by 22% to £598 million, with revenues up 11% at £80.8 million and underlying profits [adjusted EBITDA] 93% ahead at £8.1 million.
“Looking ahead, the summer '24 forward order TTV is currently 22% 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,” said Shaun Morton, chief executive.
OTB added it is now seeing the benefit of its new partnership with Ryanair after they settled their dispute over ticket discounting.
Launched two weeks ago, Morton hailed the deal as a milestone agreement with demand for Ryanair seats encouraging.
“Through this partnership, our customers can now secure free and fair access to Ryanair's seat supply, and we hope this industry-leading collaboration can be used as a blueprint for how the industry can better work together."
Morton added: “Looking ahead, the summer '24 forward order TTV is currently 22% 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."
Shares fell 9% to 152.8p.