‘Significant’ price increase for On the Beach holidays thanks to no-deal Brexit

Holiday operator On the Beach Group plc (OTB) has stated it will see a ‘significant increase in prices’ as a result of the possibility of a no-deal Brexit.

Financial performance for the year is expected to fall below the OTB board’s previous expectations as a result of the market conditions.

The firm has issued a trading update in which it said that the ‘increased likelihood’ of a no-deal Brexit has seen the devaluation of the Pound Sterling against the euro.

OTB has stated that its flexible model incorporating dynamic instead of currency hedged pricing means that it will be unable to keep prices competitive if the Sterling continues to drop.

Simon Cooper, chief executive of OTB, commented: “In what is a difficult general economic climate, we remain confident in the resilience and flexibility of our business model, focusing on profitable growth and an ability to capitalise on any structural changes in the market.

“In FY19 we have invested significantly in our infrastructure, talent and technology to ensure that we build strong foundations to support our strategic objectives.”