On the Beach reports weak trading ahead of summer
On the Beach Group has said consumer demand remains “very weak” following a series of disruptions owing to Covid-19.
Ahead of its annual general meeting today, the company said UK web traffic, bookings and spend on online marketing activity across the first four months of the financial year down 73 per cent, 83 per cent and 85 per cent respectively.
As a result of the four-week lockdown in November and the subsequent UK-wide lockdown that commenced in early January 2021, combined with further reductions in winter flying programmes, consumer demand for forward holidays has remained very weak,” explained a statement.
The company said it was responding to the latest travel restrictions by taking holidays off-sale that depart prior to May.
Simon Cooper, chief executive of On the Beach Group, commented: “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 half one and into half two.
“Following the prudent activities undertaken in the last financial year, the group remains in a strong and debt-free financial position.”
On the Beach said it had £93 million on hand at the end of last month.