The OTA announced last month it was launching cruise-only holidays from three lines – Celebrity Cruises, Norwegian Cruise Line and Royal Caribbean International.
The expansion into cruise came just over a month after it shuttered its B2B operation. It announced at the time that Si Morris-Green, former B2B director at Classic Collection, would stay on with the group to lead its cruise division.
On Tuesday (2 December), On the Beach announced its financial results to the end of September, with the OTA achieving total transaction value (TTV) for the full year of £1.25 billion, representing an increase of 11% on last year.
This financial year is the fourth successive year the group has increased revenue, earnings before interest, taxation, depreciation and amortisation (EBITDA).
In the last 12 months, On the Beach said it had trebled the size of its addressable market from 16 million to 50 million passengers, thanks to the "transformational partnership" it had signed with Ryanair.
The agreement with Ryanair enables On the Beach customers to access the airline's low fare flights as part of holiday packages as well as price transparency, flexible payment plans, Atol protection and other perks such as free lounge passes.
Looking ahead, On the Beach said it is currently leveraging its "strengths including its organic customer acquisition channels to enter and disrupt the UK cruise holiday market".
"Cruise is a compelling opportunity to further increase our share of a customer’s holiday wallet," it added. "We expect to attract both existing and new customers to the brand.
"Cruise represents one of the fastest growing segments of travel, with supply underpinned by new ship launches and increased demand from younger demographics."
Shaun Morton, On the Beach chief executive, added: "Our strategic expansion areas, including City Breaks and Holidays for customers from the Republic of Ireland continue to build momentum, already contributing 8% of FY25 booking mix, whilst the recent launch of Cruise complements our offering and I am excited by the opportunities in this new, high growth market."
Meanwhile, On the Beach revealed it spent £8.4 million on costs relating to the closure of Classic Collection, including redundancy costs, contracts and other losses.
