Proactive Investors - Online travel agent On The Beach Group PLC (LON:OTB) clocked record total transaction value of £1.2 billion in the financial year ending 30 September, representing 15% yearly growth.
The confident trading update highlighted the role On the Beach’s collaboration with budget Irish airline Ryanair (LON:0RYA) played in the financial year.
Ryanair announced the partnership in May as part of its crusade against what the budget airline calls “pirate” (OTAs).
Ryanair has expressed frustration with OTAs that overcharge customers for airfares, sometimes charging up to three times the cost of booking directly from Ryanair’s website, as was allegedly the case with eDreams.
To combat this, Ryanair selected On The Beach as an ‘approved OTA’, providing what On the Beach’s chief executive Shaun Morton called “a blueprint for how the industry can work together to ensure consumers have choice and free, fair access to flights across the market”.
Although On the Beach incurred “significant one-of costs” related to the Ryanair integration, the group is still expected to hit the full-year profit-before-tax (PBT) target of £31 million.
Discussing the trading environment going forward, Morton today stated: “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."