6th Feb 2020 11:11
(Alliance News) - Holiday firm On the Beach Group PLC on Thursday said it has ramped up offline marketing spend in a bid to occupy the space left in the market by Thomas Cook's collapse.
On the Beach reported an "unprecedented opportunity to take market share" and has in turn doubled its online marketing spend.
"Management expects that a proportion of this investment will payback in the second half of the financial year. Alongside this exceptional marketing spend, the group has also focused on price competitiveness to continue to drive long-term market share gains," On the Beach added.
The company also explained that "limited capacity" in the market, amid a shortfall of Boeing Co's troubled 737 MAX aircraft, has led to seat price increases, compared to year ago. The aircraft grounded by aviation regulators last year following two fatal crashes.
On the Beach said it does not expect prices to stabilise this financial year.
"Despite the significant increase in the prices of holidays across the market and the seat capacity constraints, the immediate actions taken by the group to capture market share are helping to drive strong sales growth for summer 2020 departures. The group's international sites have continued to deliver an efficient performance [year-on-year] and the board continues to evaluate opportunities to enter new source markets," the company noted.
On the Beach will report on May 12 its interim results for the six months ending March 31.
Shares in the company were 2.5% higher at 415.00 pence each in London on Thursday morning.
By Eric Cunha; [email protected]
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