On the Beach profits surge by 20% to £35m as it moves to ‘disrupt’ cruise market

On the Beach saw summer bookings grow by 13% over last year, “significantly  ahead” of the overall package holiday market as it shut B2B arm Classic Collection.

 

The OTA now aims to “enter and disrupt” the UK cruise holiday sector by using its rapidly developing AI tech platform to attract new customers.

 

The performance to the end of September saw pre-tax profits rise by 20% to £35 million as the OTA achieved record total transaction value (TTV) for the fourth consecutive year, up by 11% to £1.25 billion.

 

The company reported that five and five star holidays now represent more than 8% of TTV.

 

The growth in the 12 months to September 30 has continued into the new financial year with TTV up 16% and bookings growth of 14% in the year to date.

 

Winter 2025-26 forward bookings are up 15% year on year. 

 

Summer 2026 “momentum is building” with forward bookings up 8% as On the Beach said it was “confident in delivering another record summer”.

 

Profits for the 2025-26 financial year are now expected to reach between £39 million and £43 million “in line with market expectations”.

 

The group noted that it remains on track with a medium term ambition of £2.5 billion TTV and pre-tax profit of £85 million by the 2029 financial year, 

representing an almost tripling of profits from 2024.

 

On the Beach chief executive Shaun Morton said: “Booking intent currently remains strong amongst younger age groups, particularly 25–34s, where package uptake is highest and has seen consistent year-on-year growth, supporting long-term structural adoption. 

 

“Recent research indicates that 38% of Gen Z are now more likely to book a package holiday compared to five years ago. 

 

“Businesses with relevant digital platforms are particularly well-positioned to benefit, as consumers increasingly expect a seamless, tech-driven booking experience.”

 

The company made “significant progress” in its existing beach market and new expansion markets of city breaks and entry into Ireland.

 

On the Beach, which announced a return to Abta membership after five years on Monday, has now entered the “large, high-growth” cruise market.

 

Cruise is seen as “compelling opportunity to further increase our share of a customer’s holiday wallet”. 

 

Morton said: “We expect to attract both existing and new customers to the brand, with 4 million cruise passengers departing from the UK and Ireland each year, representing a further increase of our addressable market. 

 

“Cruise represents one of the fastest growing segments of travel, with supply underpinned by new ship launches and increased demand from younger demographics.”

 

He added: “During the year we also took the decision to strategically focus on our B2C offer, where we see the strongest potential for growth, resulting in the closure of our B2B operations, trading as Classic Collection. 

 

"I want to take the opportunity to acknowledge the commitment and hard work of all affected colleagues.”

 

Morton described AI automation across the back-office and company-wide as "saving thousands of hours per week and enables us to move at pace towards our strategic ambition.

 

"We have achieved company-wide AI adoption with employees using AI assistants daily for individual productivity gains."