Shares in online travel agent On The Beach have tanked today after it suspended its annual profit forecast.
After the online travel agent reported a ‘significant slowdown in demand’ because of the Middle East conflict, it shed 13.5% of its value over the course of the day, finishing at 167 pence per share.
Although the Manchester-headquartered company has ‘limited exposure’ to destinations in the Middle East, it has suffered a significant drop in demand for holidays to Turkey, Greece, Cyprus and Egypt in particular.
On The Beach said the ongoing uncertainty will impact its profitability.
On The Beach floated in 2015 and hit a high of more than 600p in 2018. Its current valuation – lower than that seen during COVID even, when all international travel was effectively suspended – is down 25% in the year to date, and 37% over the last six months.
In a statement to the London Stock Exchange this morning ahead of its annual general meeting a spokesman said: “The timing of when the conflict will end and the shape of recovery in demand to these destinations are unknown. Both will impact group profitability and as a result the group is temporarily suspending its guidance of £39m to £43m Adj. PBT for the full year.
“Despite the volatile environment, the company continues to trade profitably and generate cash because of its asset light model with significantly lower fixed costs, commitments and exposure to increases in variable costs versus the asset heavy tour operators.
“The board remains confident in the delivery of the group’s medium-term ambition of £2.5bn TTV, £100m EBITDA, £85m PBT and 38.7p EPS.”
The timing of the Middle East conflict comes after On The Beach enjoyed a record 2025, with bookings up 10& and bookings from repeat customers up 19&.
Shaun Morton, chief executive of On The Beach Group plc, said: “Momentum has been building since we entered 2026, recording our highest ever volume trading day on 1st February and a 34% increase in Q2 travelled / departed volumes.
“Our customer loyalty continues to grow with repeat customers up 19% in the period.
“The advancements in both our proposition and app functionality are enabling customers to search great value holidays, be that in a city, on a beach or on a cruise ship, and app bookings have increased 58% as a result.
“Following the onset of the conflict in the Middle East, our operational teams have been working round the clock to support directly impacted customers in resort and to enable a return home as soon as possible.
“I am confident that On The Beach’s enhanced strategy to scale into new markets, underpinned by its asset light operating model with no committed inventory to fill, remains a key competitive advantage.”
On The Beach’s investment in technology has also enabled rapid expansion into City packages with the number of destinations now passing 180.
The group will announce its interim results for the six months ending March 31st 2026 on May 12th.