On the Beach suffers drop in demand due to coronavirus
On the Beach Group has warned its profit will be less than expected following a drop in demand due to the spread of coronavirus.
It said it saw a ‘small but noticeable’ reduction in demand for summer 2020 travel following the early reports of COVID-19 cases in early February.
"The reduction in demand has accelerated significantly following the increase in COVID-19 cases in Europe, particularly the spread of the virus to Tenerife," it said.
"With the expectation that the spread of the COVID-19 is going to cause significant disruption for a period of time, the Board believes that the Group’s Full Year results for the year to 30 September 2020 will be below current market expectations," it told investors.
But it insisted its ‘asset light business model, low inventory risk and tight cost and cash controls’ make it ‘resilient in a volatile market environment’, allowing it to return to profitable growth when the demand for short haul beach holidays comes back to normal.
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 
Phocuswright reveals the world's largest travel markets in volume in 2025
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Euromonitor International unveils world’s top 100 city destinations for 2025