A UK-based travel company On the Beach has experienced record trading in 2023 Financial Year, the company reported on Tuesday.
On the Beach shares were up +14.8%, trading at 134.8p at the time of writing.
The company achieved record Group Total Transaction Value (TTV) as trading returned to normal after years of disruption due to the pandemic.
Group revenue increased to £170m in 2023, up from £143m in the yea prior.
On The Beach saw a substantial 13% increase in passenger numbers in Summer 2023 compared to Summer 2022. Long Haul TTV experienced an impressive surge of 74%, while Premium 5* B2C TTV soared by 32% YoY.
“Holidays have proved resilient during the cost-of-living crisis, as people are prepared to give up some of their normal day-to-day treats if it means still being able to go abroad for a week by the sea. Airlines have been talking about strong demand for some time, and On the Beach’s latest results certainly suggest a favourable backdrop for the travel industry,” said Russ Mould, AJ Bell Investment Director.
The company fortified its distinctive offering, resulting in elevated consideration, heightened customer satisfaction, and increased repeat booking rates.
Strategic investments were made in the core platform, exemplified by the launch of a new website and native mobile app. The forward order book attains unprecedented levels, indicating a robust outlook.
A dividend reinstatement is planned for FY24, underscoring the group’s sustained cash-generating capability and alignment with its capital allocation framework.
The company was positive on their outlook saying winter bookings were up 34%.
“In recent months, we’ve seen cracks in the luxury goods market, which suggests wealthier clientele aren’t completely immune to cost-of-living pressures. Will this trickle down to the premium holiday segment? Judging by On The Beach’s outlook statement, it hasn’t happened,” Mould concludes.