12 May 2021
On the Beach Group plc
("On the Beach" or the "Group")
Extension of off-sale period to 31 August 2021
On the Beach Group plc (LSE: OTB.L), the UK's leading online retailer for beach holidays, announces that the Board has taken the decision to extend the Group's off-sale period for holidays from 30 June to 31 August 2021, following the announcement earlier this week on the traffic light system for leisure travel, where most destinations have been classified Amber.
The Board's decision is based on consumer feedback from both research* and search / sales data, showing a market wide lack of appetite for booking Amber destinations, as well as the likely loss of customer goodwill for holidays that might be booked only to be cancelled or re-arranged.
This position will be reviewed following the Government's update on travel and associated restrictions which is expected to be released at the end of May. On the Beach will monitor the situation closely, and return to selling summer 2021 beach holidays as soon as there is more certainty that new holidays booked will take place without disruption or cancellation, and that the traffic light requirements can be managed by authorities and consumers alike.
Simon Cooper, Chief Executive of On the Beach Group plc, commented:
"There's nothing we like more than sending people on holiday, particularly after the year that everyone has been through.
"But in the same way that 85% of consumers don't want to book travel to Red or Amber destinations because there is no guarantee they will turn Green in time for their holiday, equally there is every possibility destinations designated Green will turn Amber or Red prior to customers' departure. Given this, there is too much uncertainty for us to take new bookings with confidence that they will go ahead, or for us to know the potential inconvenience and incremental costs of taking holidays to either current Green or Amber destinations.
"Unlike many of our competitors, we have no interest in selling holidays that are unlikely to happen, as our business model enables us to put customers first, rather than needing to get cash in the door to contribute to high fixed costs, and offering refunds in the form of a voucher when holidays get cancelled.
"This is a temporary measure that we will review in line with the next Government announcement. In the meantime, we will focus our efforts in helping and advising our customers who already have bookings of their options to either still go on their holiday, amend their holiday or, where the holiday is cancelled, refunding them in cash within 14 days.
"We are committed to putting the interests of consumers first, and in doing so, doing the right thing for the travel industry and our suppliers too."
* YouGov research found that for 'Amber' destinations just 15% of adults thought that it would be worth travelling under the current guidelines.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulations (Regulation (EU) No.596/2014). For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is being made on behalf of the Company by Kirsteen Vickerstaff, Company Secretary.
For further information:
| On the Beach Group plc Simon Cooper, Chief Executive Officer Shaun Morton, Chief Financial Officer
| via FTI Consulting |
| FTI Consulting Alex Beagley Fiona Walker Sam Macpherson Holly Ayres | Tel: +44 (0)20 3727 1000 |
About On the Beach
With over 20% share of online sales in the short haul beach holiday market, we are one of the UK's largest online beach holiday retailers. We have significant opportunities for growth and a long-term mission to become Europe's leading online retailer of beach holidays. By using our innovative technology, low-cost base and strong customer-value proposition to provide a structural challenge to legacy tour operators, we continue our journey to disrupt the online retail of beach holidays. Our model is customer-centric, asset light, profitable and cash generative.
Cautionary statement
This announcement may contain certain forward-looking statements with respect to the financial condition, results, operations and businesses of the Company. Forward looking statements are sometimes, but not always, identified by their use of a date in the future or such words as 'anticipates', 'aims', 'due', 'will', 'could', 'may', 'should', 'expects', 'believes', 'intends', 'plans', 'targets', 'goal' or 'estimates'. These forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements, including factors outside the Company's control. The forward-looking statements reflect the knowledge and information available at the date of preparation of this announcement and will not be updated during the year. Nothing in this announcement should be construed as a profit forecast.
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