Manchester-based OTA On the Beach Group has seen revenues leap by a quarter, the firm reported in a six month trading update.
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On The Beach sees six month revenues leap by a quarter
Manchester-based OTA On the Beach Group has seen revenues leap by a quarter, the firm reported in a six month trading update.
In an update to the City on trading up to January 31 ahead of today’s Annual General Meeting, the firm reported unique visitors to site are up 18.9% year-on-year.
It added this has been delivered alongside an overall reduction in the cost per unique visitor. Mobile visitors reached a record 67% of traffic, an increase of 31% year-on-year.
The trading update is the first since the company was successfully floated in September last year.
The statement added the group’s international division, which trades as www.ebeach.se and is live in Sweden, is continuing to make progress and is being tested in Norway.
“The group has performed well in the first four months of the financial year,” the trading update said.
“Our ongoing strategy of investment in technology and directly sourcing supply, combined with our increased investment in both online and offline marketing, has delivered strong growth in bookings and revenues.
“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.”
Chief executive of On The Beach, 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.”
Cooper is due to be interviewed in the first Travel Weekly Business Breakfast of 2016 on February 24, the first day of this year’s annual Travel Technology Europe trade show.
The event is being hosted by Google in its London HQ and is being held on conjunction with Travel Weekly’s digital travel publication Travolution which marks its 10th birthday this year. Travolution will unveil its annual Innovation Report into technology spending in the UK travel sector at the event.
