On the Beach hits record bookings as CEO hails ‘most successful summer’ ever
On the Beach has revealed a record year of bookings as it emerges from one of the busiest summer seasons of travel on record.
In a trading update this morning, the package holiday retailer reported a 26 per cent rise in total transaction value (TTV), which represents gains in holiday bookings pre-cancellation, to deliver a record £1.1bn.
That came on the back of soaring pent-up demand for travel post-pandemic, which helped passenger numbers rise 11 per cent year-on-year, with the typically quieter winter months also seeing a jump of 26 per cent.
The growth will see the group hit the top end of its range for pre-tax profits, however group EBITDA is still forecast to be in line with market expectations as the firm invests heavily in brand and marketing campaigns.
On the Beach’s total marketing spend for the year took up 40 per cent of its total revenues, down slightly from last years 45 per cent.
Shaun Morton, chief Executive of On the Beach, said “we continue to leverage the benefits of the investments we have made in our proprietary technology platform, brand and proposition and I am pleased to see that this has driven growth in both the top and bottom lines during the second half of the year as planned.”
“Alongside access to greater seat and bed capacity, this has resulted in our most successful summer, sending more passengers on their holidays than ever before.”
He added: “We will exit FY23 with the momentum of a record forward order book and demonstrable progress in strategic expansion areas, which we are excited to build upon in FY24.”
UK airports have already reported busy summer periods.
Stansted reported its second highest month ever in August whilst Heathrow saw a record number of checked bags in the same month.
It comes after a mixed year for the Manchester-based firm. Revenues have risen on strong bookings, but shares have yet to follow suit as the retailer shells out on expensive marketing campaigns to hit profitability.
In December, On The Beach chief Simon Cooper, who founded the business in 2004, stepped down and was replaced by the then CFO Shaun Morton – whose succession plan aims to see the group hit profit, bringing its post-pandemic recovery full circle.