On the Beach reports jump in revenue
On the Beach Group has reported a 20% year-on-year rise in revenue for the four months to the end of January 2017.
Releasing a trading update ahead of its AGM today, it said the quarter is historically the quietest trading period and booking volumes were impacted by the timing of the low cost carriers’ seat release for spring and summer capacity, which resulted in a noticeable shortening of lead times.
But it added: “Since the start of the new calendar year booking volumes and revenue growth have strengthened and there has been a continuation of lower cost paid search marketing.”
“Our growth in the period is also particularly pleasing given that many of the Group’s key hotel partners in the Western Mediterranean are holding back capacity to sell in the late market. This has led to an inevitable slowing of peak season sales to key destinations such as Majorca, mainland Spain and the Algarve.
“This trend should however lead to greater availability in these destinations in the late market with an offsetting increase in sales volumes.”
The company said trading in the period February to mid-July 2016 was also disrupted by the aggressive bidding and discounting of the Low Cost Travel Group.
It said its year-on-year comparators will be significantly softer in the next six months.
“The Board believes that the Group is well positioned to generate strong growth in the current financial year,” the update continued.
“The oversupply of seats into the Western Mediterranean is presenting the Group with multiple opportunities to leverage its scale and technological capability to consolidate its market leading position over the coming months.”
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.
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