Ocean Holidays believes it is on track to move out of a loss-making period and into profitability as it plans further inroads with the trade and looks to maximise its new Atol provision.
Co-chief executive Harry Hastings said the US specialist had “returned to being profitable on a current trading basis” as he reported agents accounted for 40% of Ocean Florida bookings during peaks – up from 20% last year.
Parent company Ocean Holidays posted a £2.5 million net loss in the 16 months to April 30, 2024, following a period of losses throughout the pandemic and during the delayed reopening of the US market.
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However, Hastings noted the extended reporting period took in two January-April low seasons in addition to significant “exceptional items” and said £7.5 million in convertible loan notes and a £1 million injection from a private group of investors reflected the company’s underlying stability.
“The normal operations of the business are profitable,” he said.
“We achieved around £1 million in Ebitda [earnings before interest, taxes, depreciation and amortisation].”
Plans for the trade include the launch of a cruise-and-stay programme later this year, which will build on existing relationships with Carnival, Royal Caribbean and Disney Cruise Line, while an online booking portal is planned for early next year.
The company is also looking to widen distribution after moving from The Travel Network Group to become a member of the Hays Travel Independence Group (IG).
Having previously held its own Atol, Ocean now operates under Hays’ tour operating licence, which Hastings said had reduced “administrative pressure” and cost.
“When we looked at the Hays proposition, the time we won back was the winning factor,” he added.
Becoming a Hays Travel IG member has enabled Ocean Florida to boost distribution organically, Hastings confirmed, but the business is also ramping up efforts with other agency groups and consortia.
“We’re putting more investment into the other consortia than we have in any prior year,” he said. “We’re doubling down and we’re in active growth mode with all of them.”
Ocean Holidays remains 96% owned by its founders – Hastings and his brother George alongside Daniel and David Ox.
“If you think of owner-operated tour operators founded since 2000, you would be hard-pressed to find many of our size and scale that have stayed owner-managed,” Hastings said.