On the Beach credits marketing for rise in premium bookings

On the Beach claims its “truly differentiated customer proposition” has helped the brand capture a greater share of the premium market amid a year of “strategic progress”.

The holiday company says “customer-focused initiatives”, such as free airport lounge access and fast track security, have enhanced the customer experience and set On the Beach apart from its peers.

The brand attributes its investments in brand, tech and the customer proposition during 2022 for an 82% rise in 5-star holiday sales in the year to 30 September, compared to pre-Covid levels. As a result, the company’s total average booking value is up 31% versus 2019.

On the Beach invested £27m in online marketing and £11.9m in offline marketing in the year to 30 September. The main components of the £11.9m investment were ‘The Most Wonderful Time of the Year’ brand campaign – which scooped the Marketing Week Award for Travel, Tourism and Hospitality in November – combined with sponsorship of the Magic Breakfast radio show.

The campaign has also been highlighted as one of Marketing Week’s campaigns of 2022.

The best marketing campaigns of 2022: Part 2

Online marketing investment represented 31% of adjusted revenue compared to 33% in 2019. On the Beach intends to continue investing in brand and expects its online marketing costs to become more efficient as a greater volume of traffic is attracted through brand and direct channels, reducing reliance on non-brand PPC.

Success is largely as a result of the investments we have made in the last 12 months across our brand, technology and customer proposition.

Simon Cooper, On the Beach

Revenue rose to £87.1m over the year, up from the £13m generated in 2021 and a rise of 5% on revenue of £83.3m in 2019. This performance was achieved despite the peak booking month of January 2022 being impacted by the emergence of the Omicron variant.

Average booking values have increased by 31% compared to 2019 levels due to an increase in the mix of customers spending more than £700 per person on their holidays. This figure includes an increase in bookings into more premium products across both short and long-haul destinations.

‘Strategic progress’

CEO Simon Cooper describes 2022 as a year of “strategic progress” for the group.

“Despite a number of well-documented headwinds faced by the entire industry, including the disruption caused by Omicron in the key booking period of January, the group reported double digit growth in group sales, returned to profitability and exited the year in a strong cash position,” he adds.

“This success is largely as a result of the investments we have made in the last 12 months across our brand, technology and customer proposition.”

Cooper also announced he will step down over the next 12 months to be replaced by current CFO Shaun Morton.

Morton talked alongside CMO Zoe Harris at Marketing Week’s Festival of Marketing in October, when the duo shared what it takes for a successful partnership between marketing and finance.