On the Beach (OTB) says its ‘transformational partnership agreement’ with Ryanair has helped achieve record results for 2024.
CEO Shaun Morton said: “I am delighted to report yet another record-breaking performance this year, achieving Group TTV of £1.2 billion, representing our third consecutive year of revenue growth. With a 25% year on year increase in Group adjusted profit before tax, and a strong balance sheet, we are entering FY25 in better shape than ever.
“Signing the Ryanair agreement provides OTB secure access to all relevant low-cost flight supply from Europe’s largest airline.
“OTB is now a brand firmly associated with long haul as well as short haul beach holidays and the market opportunity for further growth is significant from existing and new destinations.”
OTB and Ryanair signed the partnership agreement in May 2024.
Passenger volumes were up 13% for summer 2024 compared to the previous year and OTB’s partnership with Ryanair has ‘simplified operations and enhanced scalability’.
TTV is up 14%, bookings are up 15% on the previous year and forward bookings are at ‘record levels’, with winter 2024 bookings up 25% for the group.
“Current trends and strategy give us confidence that Summer ’25 will be significantly ahead of Summer ’24,” OTB said in its trading update.
The company’s ‘next stage of revenue growth’ is expansion into cities, with OTB research indicating that ‘52% of those who have previously booked through OTB are likely to consider us for city packages’. It also expanded internationally in 2024, with the sale of package holidays from the Republic of Ireland from fourth quarter, with the launch of onthebeach.ie.
Adjusted TTV for trade brand Classic Collection in 2024 came in at £40.6m, compared to £28m in 2023, with an operating profit of 1.6m in 2024, compared to 0.1m in 2023.
Shaun added: “The B2B channel operates in an increasingly competitive market however there remains a significant opportunity to become the go-to B2B provider of Ryanair packages, whilst having the ability to offer tailor-made packages for the trade.”
Referring to OTB’s overall performance, Shaun said: “This performance was driven by a combination of initiatives, including the successful integration with Ryanair, ongoing investment in our proprietary technology platform and further enhancements to our differentiated customer proposition.
“The partnership has facilitated an improved customer journey for those booking Ryanair flights as part of an OTB package, whilst enabling increased operational efficiency and a greater focus on areas of strategic value. What’s more, the agreement and significant upgrades to our technology have supported a doubling of our addressable market, following the addition of city breaks to our offering alongside planned investment in Ireland.
“The positive momentum in FY24 has continued into the new financial year, with TTV 14% ahead of last year, indicating that customers continue to prioritise their spending on holidays. Winter ’24 volumes are currently at record levels, up 25% year on year, as customers seek winter sun or a European city break, and we anticipate Summer ’25 to be significantly ahead of last year, with bookings to date supporting this.
“Our strategy and positive booking trends, underpinned by our track record of delivery, gives us every confidence in delivering on our medium-term ambition to double TTV to £2.5 billion, achieve EBITDA of £100 million and Adjusted PBT of £85m.”
