On the Beach to close Classic Collection B2B arm

On the Beach is to close its Classic Collection B2B arm to focus on its core B2C activities.

No further bookings will be taken for Classic Collection but agent partners will be assisted with ongoing bookings.

All 26 Classic Collection staff will enter a collective consultation process.

More: Trade sadness as Classic Collection to close after 37 years

The company confirmed the decision in a pre-close full-year trading statement on Wednesday (September 24).

The statement said the non-core B2B operations would be “discontinued”, adding: “The Board has taken the strategic decision to commence an orderly wind down of the B2B segment trading as Classic Collection which made a small loss in the year, to focus on the higher growth potential of the B2C business trading as On the Beach.”

Shaun Morton, chief executive of On the Beach Group, said: "Over the last 18 months, we’ve made significant improvements to our B2B technology and proposition, however we’ve not been able to deliver sufficient growth to sustain the continued investment required.

"We’ve therefore made the difficult decision to commence a wind down of Classic Collection and focus on our B2C business, On the Beach, where there are the strongest opportunities for growth.

"Our priority is now on supporting our colleagues, trade partners and their customers as we wind down the business and operations."

The announcement was made as On the Beach announced a third consecutive record year of growth, with summer 2025 bookings 12% ahead of last year.

It reported a total transaction value of £1.23 billion, an increase of 11% on last year, with pre-tax margin expected to be around 34%, compared with 31.7% last year.

It said winter bookings were also tracking 12% ahead of the same time last year, while confirming the summer market had followed a wider industry trend of later bookings.

The company also confirmed plans to reduce share capital through a share buyback programme for up to £25 million, adding: “The Board has determined that sufficient surplus cash exists to commence a share buyback of up to £25m, building on the £30m already returned to shareholders through share buybacks and dividends in FY25.”

More: Trade sadness as Classic Collection to close after 37 years