On the Beach swoops in for Thomas Cook market share after collapse
Package holiday firm On the Beach has jumped at the opportunity created by the collapse of Thomas Cook, it said today, nudging shares up in early trading.
The London-listed firm said the failure of the 178-year-old travel giant has “created an unprecedented opportunity to take additional market share at an increased rate”.
Read more: Thomas Cook falls into liquidation as rescue talks collapse
It said that as a result, it had ramped up its spending on marketing, both online and offline, to try to bring new customers to its outlets.
In a trading update this morning, it said it is “well positioned” across its channels. These include onthebeach.co.uk, sunshine.co.uk, Classic Collection and Classic Package Holidays.
Shares had risen 1.2 per cent by 8.10am this morning.
The update follows a profit warning in August, which was caused by the tumbling pound and Brexit uncertainty – both factors which did for Thomas Cook.
But it appears the demise of one of its biggest competitors has provided a lifeline for On the Beach, which is looking to grab the “exciting opportunity”.
On the Beach chief executive Simon Cooper said: “I would like to thank all teams across the business for their exceptional response following the compulsory liquidation of TCG 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.”
Thomas Cook’s collapse has had a “significant impact on the package travel industry,” the firm added.
In the case of On the Beach, this meant a spike in shares, which rose nearly 15 per cent over the days its competitor failed.
Meanwhile, for airlines, this has meant a scramble to grab Thomas Cook’s take-off and landing slots at Gatwick airport.
Easyjet, British Airways owner International Airlines Group and Wizz Air have all reportedly tabled bids to buy the positions.
Read more: Business committee chair Rachel Reeves attacks defiant Thomas Cook leadership
Virgin Atlantic were also said to be looking at its less-valuable night-time slots.
Virgin Atlantic chief executive Shai Weiss told an event in London Thomas Cook’s collapse demise was “unfortunate,” and that it “sadly didn’t adapt quickly enough”.