OHG reports profit after surviving ‘bed bank war’
The On Holiday Group has reported profits of £1.4m thanks to a rise in passengers and cutting costs.
The group had reported losses in the last two years during what it referred to as a ‘bed bank war’.
The group said it has been able to increase passenger volumes by 25% to 600,000 passengers and reduced overheads by 10%.
CEO Steve Endacott said overheads savings came from reviewing all cost items throughout the business.
"Volume growth has been in line with the sector growth, which has been boosted by low-cost carriers switching capacity from cities to leisure routes, for example Ryanair adding 60 flights a week to the Canaries for Winter 09/10 and Summer 2010.
"We expect continued volume growth as this trend continues," he said.
According to Endacott, the bed bank sector in the UK is now relatively mature, with smaller players being forced out of the market by competitive pricing by the bigger players.
“OHG operates within a commodity market place which has simple rules,” he explained.
“Drive the highest volume, through the lowest possible overhead using technology to drive efficiency. The barriers to entry are now substantial, as a bed bank needs to carry over 350.000 passengers to break even these days.”
OHG has also generated over 50,000 bookings from non-UK residents in the first year of its German and Spanish operations.
Further expansion into Canada, France and Italy is planned for 2011.
The group has appointed Peter Brown to its board as a non-executive director.
Brown stepped down as CEO of Monarch Airlines in February 2010 and previously held roles as group managing director of Cosmos and board level positions within First Choice and Unijet.
Brown commented: “The growth of the dynamic packaging sector in the UK has been phenomenal over the last five years and the On Holiday Group’s management has been at the forefront of this development.
“It is therefore with great pleasure that I have accepted the opportunity to help guide its growth, during this next stage of its European Expansion.”
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Qatar Airways offers flexible payment options for European travellers
Phocuswright reveals the world's largest travel markets in volume in 2025
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Skyscanner reveals major travel trends 2026 at ITB Asia
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists