The OTA decided that from the end of June, it would stop selling breaks owing to the frequent changes to the UK’s travel restrictions.
It went back on sale in early September, when the UK’s travel rules stabilised and there was a clearer picture of how the landscape would evolve as rates of vaccination increased in the UK and on the continent.
"The board’s decision was based on consumer feedback from both research and search/sales data, showing a market-wide lack of appetite for booking amber destinations, as well as the likely loss of customer goodwill for holidays that might be booked only to be cancelled or re-arranged," said On the Beach in a trading update, issued on Wednesday (27 October).
The OTA said that while the pause resulted in "suppressed" trading during the second half of the year, it was nonetheless able to continue investing in its tech platforms, brand and supply to "ensure it remains well-placed to take advantage of the market share opportunity when demand for booking holidays returns".
Additionally, it said its free Covid test promotion and the further easing of government travel rules "had stimulated bookings in the final weeks of the financial year". On the Beach will post its full-year financial results for the year to 30 September on 9 December.
"The increased awareness of brand and strengthening of trading over this period provides confidence that there is pent-up demand for travel, and positions the business well as we enter 2022," said the OTA.
As of 30 September, the group had in excess of £55 million in cash, excluding customer pre-payments totalling around £40 million. It also has access to a £75 million credit facility, which is currently undrawn. It declined to give any guidance for the 2022 financial year owing to "continued short-term uncertainty".
Simon Cooper, On the Beach Group chief executive, said: “The strategic initiatives we have taken throughout the year to best navigate the crisis and manage risk while investing in our brand, people and technology ensure On the Beach is in a strong position as we head into our typically busiest booking period."
