Sales hot up at online holidays provider

ONLINE holiday provider On The Beach has reported a good start to its new financial year with “strong growth” in revenues and bookings.

The Stockport company, which was floated by its private equity owner Inflexion with a £240m market value last September, said it was seeing the benefit of investment in technology, directly sourcing supply and also in marketing.

In an update for the four months to the end of January the Cheadle-based firm said: “On the Beach’s agile business model allowed the group to successfully react to rapid changes in consumer demand, which were more prevalent than usual during this four month period.  

“Compared to previous years and driven by recent acts of terrorism, the business responded well to significant volatility in traffic, as well as stronger demand for holidays in the Western Mediterranean which offset weaker demand for Egypt and the Eastern Mediterranean.”

UK revenue increased 26% year-on-year, supported by enhanced personalisation across devices. Daily unique visitors to site increased by 18.9% year-on-year. Mobile visitors reached a record 67% of traffic, an increase of 31% year-on-year.

The group’s Swedish site is live and “continuing to make progress”, while a Norwegian site is being tested, the company said.

Founder and chief executive Simon Cooper said: “The first four months of the new financial year has delivered a solid period of growth for On the Beach.  Our strategy of investing in marketing, hotel supply and technology to drive growth has delivered an increase in revenue in line with the board’s expectations; with consumers attracted to our wide range of value for money beach holidays.

“On the Beach continues to efficiently execute its strategy. The board believes that the Group is well positioned to continue generating attractive levels of growth and therefore remains confident in meeting management’s full year expectations.”

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