The OTA on Tuesday (14 May) said its total transaction value (TTV) for this summer is currently running 22% ahead of last year’s levels. 

On the Beach agreed to sell Ryanair’s flights and ancillaries at the same price found on the airline’s website after inking a deal in February. 

The deal came four months after the OTA successfully sued Ryanair in a row over Covid refund chargebacks, winning £2 million for flights the low-cost airline had cancelled or changed during the pandemic. 

In a statement to announce On the Beach’s interim results, chief executive Shaun Morton said: “We hope this industry-leading collaboration can be used as a blueprint for how the industry can better work together.

“In the two weeks since the partnership went live, demand for Ryanair seats has been encouraging and supports the growth of our value proposition that is enjoyed by families across the UK.

“Looking ahead, the summer ’24 forward order TTV is currently ahead of last year which, coupled with our continued trading momentum since the half year, means we are confident of delivering our biggest summer ever.”

In the six months up to 31 March, the OTA posted adjusted earnings before tax, exceptional items, share based payments, depreciation and amortisation of £8.1 million – 93% up on last year’s levels – as group profit surged 15% to £58.8 million.

And revenue jumped 11% to £80.8 million following a 15% increase in passenger bookings as well as in the average value of holidays sold.

“TTV was up 22% as we saw strong growth across both volume of bookings and the average value of holidays sold,” Morton added.

“Our customers are favouring our premium and long-haul beach holidays, whilst making the most of our enhanced customer perks.”

The premium market has been performing strongly, with On the Beach reporting a 41% year-on-year growth,  while long-haul has outperformed all other segments. On the Beach’s long-haul’s TTV increased 61% against 2023 levels.

However, On the Beach’s B2B offerings have nevertheless struggled to perform in an increasingly competitive market, forcing the OTA to combine Classic Collection and Classic Package Holidays under a single B2B sales brand.

Classic Collection’s TTV slumped 12% compared to last year, while its gross profit dropped from £2.4 million in 2023 to £2.1 million this year.

“The high street remains an extremely competitive market for B2B sales, which has contributed to a reduction in bookings of 6% on a travelled basis since the prior year,” On the Beach said.

cThis has driven the need for a strategic review and conclusion that a simpler operating model is required to serve the B2B market.”

Before the announcement that Classic Collection and Classic Package Holidays would be combined under a single B2B brand, On the Beach revealed Classic Collection chief executive Andy Freeth and product and commercial director Alex Gavalda had left the company. 

An On the Beach Group spokesperson said: “This was not an easy decision, and we will be providing full support to those affected, both personally and professionally. They are our priority over the coming weeks.

“We remain committed to continuing the growth and supporting the trade with the service and product that they’ve come to expect.”