On the Beach Group has reported “very encouraging” bookings for next summer as it reported record annual transition values of £1.2 billion.
The figure was disclosed in a trading update for the year to September 30, representing an increase of 15% over 2023 levels.
The improved performance was underpinned by year-on-year summer growth of 13%.
The company projected that pre-tax profits would be in line with expectations of £31 million, despite incurring “significant” one-off costs related to integration of a “transformational” partnership with Ryanair.
Chief executive Shaun Morton said: “Summer ’24 has set a new record for On the Beach and our full year performance represents the third consecutive year of revenue growth while delivering improved operating leverage resulting in significant ebitda and PBT [profit before tax] growth.
“We executed on a number of strategic initiatives during the year, including the successful integration with Ryanair, the launch of selling package holidays in Ireland and continued enhancements to our platform capabilities.
“We did this through a period of flight price inflation and subsequent deflation, highlighting the benefits of On the Beach’s asset light, low fixed cost operating model, delivering the best value for money to our customers reflected in our volume growth this year.”
He added:“The considerable progress made over the last 12 months has set us up for further success in FY25.
“Looking ahead, winter ’24 volumes are currently 34% ahead of the prior year, with customers seeking winter sun and enjoying our long-haul destination packages.
“Notwithstanding that it remains in its early stages, bookings for summer ’25 are very encouraging and we look forward to providing further detail at our preliminary results in December.”