Revenue plunges at Covid-hit On the Beach

On the beach reported a drop in half-yearly earnings on Tuesday, as Covid-19 travel restrictions continued to weigh heavily on the industry.

Sales of the online beach vacation specialist hit £ 4.4million in the six months to March 31, down 79%, while the adjusted pre-tax loss was £ 9.5million. pounds sterling, compared to a pre-tax profit of £ 2.3 million per annum. previously.

Adjusted revenue, which includes the impact of Covid-related cancellations, was £ 12.0million from £ 52.8million the previous year.

The statutory loss before tax fell from £ 34.1million to £ 21.6million, however, thanks to reduced costs and administrative expenses.

OTB attributed the half-year performance to “suppressed consumer demand”.

“While 2021 was not to be a normal year for travel, industry and the British public have not planned an extended lockdown and travel ban for the first six months of the 2021 calendar,” said he declared.

“This had a significant impact on OTB’s business performance, due to low levels of consumer demand and a large number of cancellations.”

After the government unveiled its traffic light system for international travel in May, the OTB announced it would extend its off-sale period for holidays until August 31. With the exception of Portugal, which has since had its green status revoked, all major European holiday destinations have been listed in orange.

OTB has said it will return to selling a 2021 summer vacation “as soon as it is more certain that the new booked vacation will take place without disruption or cancellation.”

Reservation volumes for next summer “remain low”, he added, but were “well ahead of normal business patterns”.

Simon Cooper, Managing Director, said: “The Board of Directors believes On the Beach is well positioned to increase market share as vacation demand recovers.

“While this recovery is likely to take some time and the consumer environment will continue to be challenging, the differentiating features of our business model, combined with the actions taken during the pandemic, position us very strongly for successful growth and sustained as we progress. of this long period of disruption.

He also welcomed the recent decision by the Competition and Markets Authority to investigate whether airlines have violated consumer law by refusing to reimburse flights that customers could not legally take due to restrictions.

“On the Beach has a long history of defending the rights of its customers and vacation consumers at large,” he said. “It is nice to see increased regulatory control over the travel industry. “

At 1230 BST, shares of OTB were down 1% to 354.12p.

About John McTaggart

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