On The Beach ‘frustrated’ by delays in reforming ATOL customer protection rules

On The Beach has expressed frustration at continued delays in reforming customer protection rules under the Air Travel Organizers License (ATOL).

ATOL, provided by the Civil Aviation Authority, offers financial travel protection when traveling abroad by air as part of a package holiday.

The CAA’s first round consultation document, published in April 2021, outlined measures that could provide additional protection to consumers by restricting the use of customers’ money until the end of a holiday.

On The Beach told investors Tuesday that it now understands that a change in government has caused an indefinite delay with “no definitive timeline in place.”

He added: “We will continue to take proactive steps to ensure we can compete fairly in the market while continuing to provide protection to our customers.”

In its latest annual results, On The Beach said it enjoyed record customer volume, with summer 2024 passenger numbers up 13 per cent on a year ago.

Bookings for winter 2024 are also currently at record levels, rising 25 percent year-on-year, the group added.

The company partly attributed the good numbers to its partnership with Ryanair.

The company’s revenue rose 14 per cent to £128 million, while its adjusted pre-tax profit rose by a quarter to £31 million. The total value of the transaction amounted to £1.2 billion, an increase of 15 percent year-on-year.

A dividend of 2.1 pence per share was declared, as none was declared last year.

On The Beach has also launched a share buyback program through which the company will acquire £25m of shares, paid out of its £96m debt-free cash reserve.

The group said: “The Board is comfortable that the Company has sufficient distributable reserves to recommend the dividend and commence the share buyback programme.”

On the beach share It jumped 13.05 per cent or 22.40 pence to 194.00 pence on Tuesday, having risen more than 60 per cent in the last year.

Shaun Morton, chief executive of On The Beach, said: “This performance was driven by a combination of initiatives, including the successful integration with Ryanair, continued investment in our proprietary technology platform and further enhancements to our differentiated customer proposition.”

‘The partnership has facilitated a better journey for customers booking Ryanair flights as part of an OTB package, while enabling greater operational efficiency and greater focus on areas of strategic value.

“What’s more, the deal and significant upgrades to our technology have seen our target market double, following the addition of city breaks to our offering alongside planned investment in Ireland.”