Pennycook will on April 1 succeed David Kelly, who took over the role on an interim basis last December.
Kelly will resume his role as senior independent director and will continue to chair the OTA’s remuneration committee.
Pennycook, who headed up the Co-operative Group between 2013 and 2017, has held a succession of boardroom roles during his career.
He is a previous non-executive chairman of The Hut Group and has held board roles throughout retail and consumer businesses.
An ongoing review of On the Beach’s board structure will continue following Pennycook’s appointment, the business has confirmed.
Simon Cooper, On the Beach chief executive, said: “Richard’s extensive experience in both private and public retail and consumer businesses will be invaluable, particularly his work with fast-growing online businesses, as we continue to deliver on our strategy in the UK and internationally."
Pennycook added: "This is an agile and evolving business that has retained its entrepreneurial spirit while disrupting the travel industry to the benefit of consumers.
"I am pleased to be joining at this exciting time in the group’s journey."
What’s your view? Email firstname.lastname@example.org and let us know your thoughts or leave a comment below.