On the Beach and his resignation to the summer after paying € 9 M for cancellations

Destinations

As HOSTELTUR reported in On the Beach suspends the sale of summer vacations, in mid-May the company announced that it would not sell trips for June, July or August, including all kinds of summer packages, even for countries that were on the green list, such as Portugal.

The experience lived with so many changes last summer and the situation that was predicted this year made him give up sacrificing some “marginal” sales now that later can be reduced again into hefty cancellation fees. In the first half of the 2020-21 financial year, these expenses reached 7.6 million pounds (8.8 million euros).

When he made the decision, it was not yet known that there would be no green light for other popular destinations, nor that the United Kingdom would subsequently confirm to the tourist authorities that there would be no British tourists until August, as a result of the delay in the end of the de-escalation until 19 July.

On the Beach maintains a cash box of £ 30M (€ 35M) and this despite having been making refunds to customers before receiving them from the airlines, which owe it £ 11.8M (€ 13.7 € M) for canceled flights

The company’s CEO, Simon Cooper, commented last month that many citizens were “fed up with the experience” of the summer of 2020, when many booked vacations did not take place due to changing travel restrictions. It was something that travel agencies feared, and even before the semaphore was launched ABTA asked the Government of Boris Johson to avoid unexpected changes that make it impossible to adapt the operation of tourism companies, beyond the damage to travelers and cancellations, which the sector already suffered seriously last summer.

At first the OTA had been resigned to stop operating to destinations in amber, although it finally decided to give up the summer and is concentrating on selling the summer 2022, for which the reserves are “significantly above” the normal in this date. (See: British with reservations for July and August move them to 2022)