Speaking to TTG after On the Beach’s £20 million acquisition of Classic Collection, chief executive Simon Cooper said the group would help the operator create a new online booking portal – Classic Online – giving agents exclusive access to a broader portfolio of beach product, as well as Classic’s four to five-star offering.
In return, On the Beach, which currently commands around a 25% share of the online short-haul beach holiday market, will gain access to the circa five million such beach holidays booked offline each year.
“We currently have a 0% share of passengers booking similar product offline,” said Cooper. “Why wouldn’t we want to access that market?”
MORE: Do agents need more convenience in the beach holiday sector?
Cooper said Classic Online would help agents to circumnavigate the new Package Travel Regulations (PTRs), which have made dynamic packaging “increasingly difficult”.
With Classic Online acting as package organiser, agents will be able to piece together complex bookings without the risk. “Dynamic packaging is a bit of a minefield,” said Cooper.
“The cost – insurance, contracting, health and safety – is much more. Insurance costs post-July 1 are up five to 10 times. Agents don’t want to swallow £50,000-£100,000 excesses.”
