On the Beach reconfirms its strategic commitment to the B2B Classic Collection brand, navigating through fierce competition with a focus on integrated solutions.
Despite challenges, the company is dedicated to supporting trade with quality service and products, ensuring growth and profitability.
Strategic Commitment Amid Competition
On the Beach has demonstrated its strategic commitment to its B2B channel by maintaining a unified Classic Collection brand. This is amidst intensified competition and recent job cuts aimed at profitability. The company has identified essential structural changes to enhance the performance of Classic Collection Holidays and Classic Package Holidays, reflecting a strong commitment to supporting the trade with quality services and products.
Operational Adjustments and Leadership Changes
In March, On the Beach announced the departure of Andy Freeth, the former Classic Collection chief executive, alongside product and commercial director Alex Gavalda. This strategic shift aligns with newly released financial results, highlighting a transition from a £5.9 million pre-tax loss to a profit of £600,000 in the winter half-year. This underlines their dedication to continuing growth within this important segment of their business.
Navigating a Competitive B2B Market
The B2B market has become fiercely competitive, particularly post-pandemic, necessitating a more streamlined operating model. The brand intends to simplify operations to benefit suppliers, agents, and customers. A single brand, Classic Collection, will be utilized along with a unified platform leveraging group technology and operations, ensuring a more closely integrated channel within the OTA.
Financial Performance and Market Dynamics
Despite reporting a first half operating loss of £2.7 million for Classic Collection Holidays, there was a noted profit of £500,000 for Classic Package Holidays, demonstrating the potential for success in a competitive landscape. The company’s strategic review concluded that simplifying the operating model will enhance efficiency and drive profitability in the B2B space. Former agency sales and marketing director Si Morris-Green will lead this transformative phase as director of B2B.
Market Position and Future Outlook
On the Beach Group’s ambition is evidenced by an 11% rise in group revenue for the first half of the financial year, amounting to £80.8 million. The adjusted pre-tax profit stands at £4.3 million, showcasing their commitment to delivering growth amidst challenging market conditions. The firm’s partnership with Ryanair is expected to deliver significant advantages, marking a critical milestone in providing secure access to increased airline capacity.
Enhancing Customer Proposition
The agreement with Ryanair is anticipated to underpin the company’s record summer performance. The total transaction value of forward bookings for the summer is reportedly 22% ahead of the previous year, a strong indicator of market strength. On the Beach noted a robust market, particularly in the premium segment, although the value segment faces challenges due to prevailing cost of living pressures, as highlighted by chief executive Shaun Morton.
Conclusion: Achievements and Prospects
On the Beach continues to demonstrate strong growth, supported by strategic partnerships and a streamlined approach to business operations. The company expects to achieve its biggest summer yet, leveraging the Ryanair partnership and other strategic initiatives to enhance its value proposition for customers.
On the Beach is poised for an impressive summer, with strategic partnerships and operational efficiencies aligning to deliver record performance.
The strategic focus on enhancing customer value and supporting trade solidifies On the Beach’s position amidst industry challenges.
