On the Beach is gearing up for a record-breaking summer season as customers continue to prioritise their overseas holidays despite financial pressures. The Manchester-based online travel agent reported that winter bookings are already 15% ahead of last year, and early indications suggest next summer's bookings could be the highest yet.
CEO Shaun Morton commented: "Demand for On the Beach holidays remains strong and, despite the broader consumer environment, booking trends indicate that consumers will continue to protect their holiday."
Morton noted a trend towards shorter lead times, with customers waiting until closer to their departure date to book holidays. He suggested this could reflect caution or uncertainty about household finances.
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However, he added: "Customers. are very value-conscious rather than specific about where they want to go. People are comparing what they get for their money at lots of different places."
He emphasised the importance of price in customers' decision-making, stating: "If you think of all the reasons people book the holiday they book, price is right up there.", as reported by .
In other news, On the Beach has increased its full-year dividend by a third to 4p following an improvement in profitability. The London-listed firm reported revenues of £121.4m for the year ending September, marking a 1.8% increase, while pre-tax profits rose by 7.1% to £27.9m.
Beach holidays have been the main catalyst for growth, according to the Manchester-based company, with four and five-star bookings accounting for 80% of total transactions.
On the Beach expressed confidence in meeting its projected pre-tax profit guidance for the coming year, which is estimated to be between £39m and £43m.
Shares in On the Beach saw a significant rise of 12.8% to 217p on Tuesday morning. However, the stock is still down by 13% since the beginning of the year.