On the Beach, a Manchester-based package holiday firm, has reported a significant slowdown in holiday bookings to Turkey, Greece, Cyprus and Egypt due to the ongoing conflict in the Middle East. The company warned that its profits would be affected, causing its shares to fall by more than 10 per cent.
The travel group said that although it does not have much exposure to countries directly involved in the conflict, it experienced a 'sharp drop' in demand for destinations perceived to be at risk. The firm noted that the timing of the conflict's end and the recovery of demand remain uncertain.
As a result, On the Beach has temporarily suspended its annual profit forecasts. Analysts had expected adjusted pre-tax profits of between £39 million and £43 million for the full financial year. The company sells holidays to resorts in Turkey, Egypt, Greece and Dubai.
Chief executive Shaun Morton said the company's operational teams have been working 'round the clock' to support customers directly impacted by the conflict and to facilitate their return home. Despite the recent downturn, bookings surged by 10 per cent between October and February compared to the previous year, with repeat customer bookings up by nearly a fifth.
