(Alliance News) - On The Beach Group PLC on Wednesday reported "suppressed trading" in the second half of its financial year, but the holiday retailer maintained that it remains in a strong position as it heads into the typically busiest booking period for travel.
During the six months that ended September 30, On The Beach said it had experienced difficult trading but remained well-placed to take advantage of market opportunities when demand for booking holidays returns. While demand for international leisure travel currently remains below pre-pandemic levels, the company highlighted that its specific initiatives, including its 'free Covid tests' promotion, combined with a further softening of government restrictions, have stimulated bookings in the final weeks of the financial year.
Going forward, On The Beach said it remains committed to investing for long-term market share gains in its current financial year, ahead of full market recovery.
"The strategic initiatives we have taken throughout the year to best navigate the crisis and manage risk while investing in our brand, people and technology, ensure On the Beach is in a strong position as we head into our typically busiest booking period," said Chief Executive Simon Cooper.
On The Beach restarted selling holidays to travel from early September 2021, when it became clearer that overall confidence to book holidays had increased.
Last Friday, the Financial Times reported that legal documents filed with the High Court showed On the Beach was suing Ryanair Holdings PLC for blocking the travel agent from booking flights with the Irish low-cost carrier. On the Beach also claimed that Ryanair had abused its "dominant" position in the market and made "false and disparaging claims".
On The Beach made no comment on the report in its trading statement on Wednesday.
Shares were down 4.2% at 323.19 pence each in London on Wednesday morning.
By Will Paige; willpaige@alliancenews.com
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On The Beach (OTB)