U.K.-based package trip specialist On The Beach Group believes it’s well positioned to gain market share going forward as the industry recovers.
In a trading statement the company says investment in its technology platform, customer service and the building of direct relationships with hotel partners should help it drive growth.
It also believes its "Everything’s Better" campaign, which kicked off in late December 2020, will help drive brand awareness.
Commenting on the four months to January 31, 2021, the company describes current consumer demand as “very weak” because of the November lockdown in the U.K. and the subsequent U.K-wide restrictions imposed since December and expected to run until March.
On The Beach says U.K. traffic, bookings and spend on online marketing, are down 73%, 83% and 85% respectively.
The group says it has taken holidays with a departure before May 1 off sale and that it anticipates weak demand while restrictions remain in place.
The company says its cash position was £39 million at the end of January 2021, which takes into account a £4 million investment in offline marketing, booked prior to the current U.K. lockdown.
It also reflects £5 million owned by customers in deposit payments and £3 million owed by airlines where the OTA has refunded customers ahead of receiving a refund from carriers.
Simon Cooper, CEO of On the Beach Group, comments: "The first four months of our financial year have seen differing tiering levels across the UK, followed by the current nationwide lockdown and ban on international leisure travel.
"Clearly this has and continues to impact booking volumes and the Board believes that booking volumes will remain weak through H1 and into H2. Following the prudent activities undertaken in the last financial year, the group remains in a strong and debt-free financial position. The board is confident about the Group's long term strategy and we will continue to evaluate the growing range of exciting opportunities to build our market share both in the UK and internationally."