On the Beach warns of 'challenging' value trading, on track for 'record summer'

Online travel agency On the Beach warned that trading in the package holidays market had been "challenging" but still said it expects to deliver "a record summer" in terms of bookings.

On the Beach said total transaction volumes rose by 22% to £598.0m in the six months ended 31 March, with revenues up 11% at £80.8m and underlying earnings growing 93% to £8.1m.

However, the group cautioned that trading in the value market was difficult at present, with just 1% growth year-on-year - all of which was derived from the premium end of its business.

The London-listed firm also noted that it was set to benefit from its new partnership with Ryanair, which it branded a milestone agreement.

"Through this partnership, our customers can now secure free and fair access to Ryanair's seat supply, and we hope this industry-leading collaboration can be used as a blueprint for how the industry can better work together," said chief executive Shaun Morton.

"Looking ahead, the summer '24 forward order TTV is currently 22% ahead of last year which, coupled with our continued trading momentum since the half year, means we are confident of delivering our biggest summer ever."

As of 1050 BST, On the Beach shares had sunk 11.29% to 148.67p.

Reporting by Iain Gilbert at Sharecast.com