Beach holiday retailer On The Beach saw revenue rise 23 percent in the three months to the end of January, boosted by both core business and its sunshine.co.uk acquisition.

The group said it had continued to “perform well” over the period, despite price increases in the market year-on-year for winter departures due to the failure of Monarch Airlines.

However, the group said summer 2018 seat prices would remain broadly flat, with other carriers adding incremental capacity from Easter 2018 onwards.

“These pricing factors, together with a return of customer demand for destinations in the Eastern Mediterranean, are helping to drive strong bookings growth for summer 2018 departures,” the group said.

Simon Cooper, Chief Executive of On the Beach Group plc, commented:

“The first four months of the new financial year has delivered another solid period of growth for the On the Beach, Sunshine and ebeach brands. Our strategy of investing in our brands, talent and technology to drive growth has delivered performance in line with the Board’s expectations, with consumers attracted to our wide range of value for money beach holidays. The Board remains confident in the Group’s outlook and will continue to evaluate opportunities to enhance its market share position.”

On The Beach (LON:OTB) shares are currently trading up 0.40 percent at 503.00 (0818GMT).