On Holiday Group chief executive Steve Endacott has said he is both disappointed and relieved following the conclusion of negotiations with EasyJet over a major contract to supply beds.

As Travel Weekly reported on Saturday night rival Lowcost Holiday Group beat OHG to the EasyJet Holidays contract after months of talks.

The deal is expected to see a major new force emerge in the leisure holiday market in the UK with one of the biggest and most successful lowcost airlines ramping up its supply of beds and poised to grab a significant slice of the market.

Endacott congratulated his rival on winning what he described as a “make or break” deal.

“We have both been negotiating for six months with EasyJet after it was decided to put both parties through to the contract stage after initial invitations to tender.

“Congratulations to Paul [Evans, Lowcost chief executive] for winning it, we are obviously disappointed to have lost but it’s one of those where you are disappointed to have lost but relieved at the same time.”

Other sources who had seen the original tender document from EasyJet have told Travel Weekly the commercial terms were very much in the airline’s favour, leaving the partner bed bank, effectively, having to make its money from the increased bargaining power with suppliers such a high volume contract would bring.

Although EasyJet has sought to downplay the potential size of EasyJet Holidays it has been suggested it will quickly establish itself as the third biggest tour operator in the UK.

Endacott described the tie up as a “make or break” deal due to the potential upsides if it succeeded but the downsides if it were to fail.

He said a prosperous future of OHG, the parent of trade bed bank Holiday Brokers, was not reliant on securing the deal adding the company was already trading profitably having posted profits of £1.4 million and appointing former Monarch Airlines boss Peter Brown to the board last week.