On the Beach suspends guidance as Middle East war hits holiday demand
On the Beach Group PLC shares slumped on Thursday after it suspended its full-year profit guidance as the conflict in the Middle East triggered a sharp slowdown in holiday bookings to key destinations.
Shares in On the Beach slid 12% at 169.20 pence on Thursday morning in London.
The Manchester, England-based online beach holidays retailer said despite having limited exposure to Middle East destinations, it has seen a ‘significant slowdown in demand’ since the outbreak of the conflict, particularly to Turkey, Greece, Cyprus and Egypt.
As a result, the firm said it is temporarily suspending its guidance for adjusted pretax profit between £39 million and £43 million for the year.
The group notes that trading earlier in the financial year had been strong, with bookings up 10% and repeat customer bookings rising 19% in the period from October to the end of February.
On the Beach added that it continues to trade profitably and generate cash, supported by its asset-light operating model, though the timing of a recovery in travel demand remains uncertain.
Chief Executive Officer Shaun Morton said: ‘Momentum has been building since we entered 2026, recording our highest ever volume trading day on February 1 and a 34% increase in Q2 travelled/departed volumes. Our customer loyalty continues to grow with repeat customers up 19% in the period.’
The company said investment in its mobile app is driving stronger customer engagement, with bookings made directly through the app rising 58% during the period and accounting for 38% of total bookings.
On the Beach added that its artificial intelligence strategy is progressing, with integrations linking its holiday inventory to major AI platforms.
The group recently submitted its app to ChatGPT, which it says opens a new distribution channel and highlights its readiness for an AI-driven travel market.
CEO Morton said: ‘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.’
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