OTB23 Nov 2016 16:30
One such alternative is pureplay online operator On the Beach(LSE: OTB). In sharp contrast to Thomas Cook, a recent trading update from the £301m small-cap was undeniably positive. Despite operating in the same challenging market, On the Beach has been able to grow revenue by 18% to £36m in 2016. Thanks to more and more holiday-makers going online, the company also managed to increase its market share with daily unique visitors rising by 13% over the last year to 61m. While still a lot smaller than Thomas Cook, On the Beach is also expanding into international markets such as Sweden, suggesting it's not willing to rest on its laurels.
On a forecast price-to-earnings ratio of just over 13 for 2017, shares in the Stockport-based business are certainly more expensive, but given its asset-light business model, are a far less risky bet in my opinion.