On the Beach Group (LSE:OTB) shares tumbled 16% after it said it was seeing bookings for summer 2026 hit by the later booking trend, and also plans to wind down its B2B segment .
In a year-end trading update, the package holiday operator said bookings for next summer "currently reflect the later booking trend as reported across the market, with bookings being made increasingly closer to the date of departure".
Package rival Jet2 reported a similar effect recently, resulting in a profit warning.
On the Beach said it expects its adjusted profit before tax for the past year to 30 September to be between £34.5 million and £35.5 million, excluding the B2B segment, which will be presented as discontinued operations.
It has made the decision to begin an orderly wind-down of the B2B segment, which trades as Classic Collection, after it made a small loss in the year.
Management said they will instead focus on the higher growth potential of the B2C business trading as On the Beach.
Also, a new share buyback of up to £25 million was announced as the group enjoyed a third consecutive year of record growth of total transaction value, rising 11% to £1.23 billion.
Summer 2025 bookings were 12% ahead of the prior year, which the company said significantly outperformed the package holiday market, with winter 2025 bookings also up 12%.
The year also ended with a debt-free balance sheet.
OTB shares dropped 41p to 216.5p in early trading.