On the Beach shares on the up following rival’s collapse

PACKAGE holiday business On The Beach said it is set to cash in on the collapse of rival Thomas Cook, nudging shares higher.

The online travel firm said the collapse of the 178-year-old UK tour operator created an “unprecedented opportunity” to take additional market share. As a result, On The Beach has started to increase its marketing spend to attract new customers both online and offline.

The news came as the company said its trading for the full year to September 30 was in line with management forecasts.

In August, the travel firm issued a profit warning after it was hit by the plummeting value of the pound amid the risk of a no-deal Brexit.

The company said the diving value of sterling against the euro from May forced it to push up its holiday prices compared to competitors.

But the company said it now saw greater opportunity for growth following the collapse of its rival.

The company added that it has to re-book and refund a number of customers following the collapse of Thomas Cook.

Simon Cooper, chief executive officer of On The Beach, said: “I would like to thank all teams across the business for their exceptional response following the compulsory liquidation of Thomas Cook Group in ensuring that customers were either re-booked or refunded in the shortest possible time whilst maintaining our high quality customer experience standards.

“On the Beach has an exciting opportunity to significantly increase its market share over the short to medium term by leveraging its strong brand and core capabilities.”

Shares in On The Beach jumped by 1.5%% to 443.2p in early trading yesterday.