Results for the 12 months to 30 September saw the OTA record a £14.1 million pre-tax profit, far down on the £34.5 million earned in 2019. This came despite revenue of £144.3 million, almost in line with 2019’s £147.5 million. However, the result is a big improvement on the loss of £18.4 million posted in 2021.
Chief executive Simon Cooper said: “2022 was a disrupted year. Omicron wiped out the first three or four months. The war in Ukraine and cost of living added to this. The winter market was affected by 2021 holidays being rolled into 2022.”
He added the company had nevertheless chosen to invest in branding and technology. “We were not looking to maximise profitability in 2022. We were looking to expand our audience in 2023.”
Cooper said On the Beach had a 35% market share of short-haul “value” packages, with a core audience of nine million, but wanted more premium sales, which provided 2.5 times the value of its mainstream bookings.
“In 2023 we will be looking to maintain our value share and expand our relatively low share of premium,” he said.
Chief finance officer Shaun Morton, who will take over from Cooper in 2023, said he would target more B2B sales through Classic Collection. “We purchased Classic Collection back in 2018. We bought it because we saw an opportunity to distribute core mainstream product online.”
Morton said Classic sales would amount to 30 million this year, with booking values higher than other online sales. “We see it as a significant opportunity for growth in 2023 and beyond,” he said.
On the Beach is still benefiting from pent-up demand following the pandemic. Morton said average booking value was “up significantly” with more long-haul sales. “Some of the value end of the market has not recovered as quickly, but it’s the way we positioned after Covid and we expect to see it continue.”
He said cost-of-living pressures and the hangover from airport disruption meant the three-star market was “somewhat depressed”.
