Online travel agent On the Beach Group said it has experienced a ‘significant slowdown’ in demand due to the ongoing conflict in the Middle East.
In a trading update issued today, On the Beach said the slowdown was particularly noticeable for destinations such as Turkey, Greece, Cyprus and Egypt.
As a result, it has suspended its guidance of £39 million to £43m for pre-tax profits for the full year.
It said: “The timing of when the conflict will end and the shape of recovery in demand to these destinations are unknown.
“Both will impact Group profitability, and as a result, the Group is temporarily suspending its guidance of £39m to £43m profits before tax for the full year.”
On the Beach went on to say that, despite the volatile environment, it continues to trade profitably and generate cash because of its ‘asset-light model’ with significantly lower fixed costs, commitments and exposure to increases in variable costs versus asset-heavy tour operators.
The board said it remains confident it can deliver on its medium-term ambition of an £85m pre-tax profit.
It will announce its interim results for the six months ending 31 March 2026 on 12 May 2026.
Group Chief Executive Shaun Morton said: “Momentum has been building since we entered 2026, recording our highest-ever volume trading day on 1 February and a 34% increase in Q2 [second quarter] travelled/departed volumes.
“Our customer loyalty continues to grow with repeat customers up 19% in the period. The advancements in both our proposition and app functionality are enabling customers to search great value holidays, be that in a city, on a beach or on a cruise ship, and app bookings have increased by 58% as a result.
“Following the onset of the conflict in the Middle East, our operational teams have been working around the clock to support directly impacted customers in resort and to enable a return home as soon as possible.
“I am confident that On the Beach’s enhanced strategy to scale into new markets, underpinned by its asset-light operating model with no committed inventory to fill, remains a key competitive advantage.”
See also: Worried clients switch to western Med as Middle East crisis continues
