Market's view on On The Beach
Published on April 2024
- Stock watchers are optimistic about EasyJet, particularly its new EasyJet Holidays segment, which they see as a competitive threat to On the Beach (OTB) but also a positive indicator for OTB’s performance.
- The broader travel sector is perceived to be performing well, with increasing transaction values and bookings, particularly noted in a positive recovery trend for the industry.
- OTB is benefiting from a new distribution deal with Ryanair, enhancing its visibility and potentially increasing market share due to full price transparency on Ryanair’s flights.
- There is a significant demand for all-inclusive holidays, which is expected to benefit OTB, especially amid rising living costs.
- Concerns are raised about OTB’s control over its products and the impact of competitors’ holiday offerings.
- The recent Ryanair deal with OTB is viewed with mixed feelings; while it could pose advantages in terms of market share, Ryanair’s tough negotiation stance may have led to less favorable terms for OTB.
- Stock watchers discuss the financial implications of legal cost savings for OTB, suggesting a direct positive impact on the bottom line.
- Discussions include concerns about OTB’s reliance on particular airlines for holiday packages, with a specific mention of a past reliance on Ryanair which appears to have evolved.
- Some stock watchers express caution, awaiting more consistent and reliable profit projections before considering further investment in OTB.