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.
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