On the Beach is closing its trade-facing brand Classic Collection, with no new bookings being taken and all marketing activity ceasing from today.
The announcement was made in a pre-close year-end trading update ahead of On the Beach’s final results on 2 December.
The trading update said: “The Board has taken the strategic decision to commence an orderly wind down of the B2B segment trading as Classic Collection which made a small loss in the year, to focus on the higher growth potential of the B2C business trading as On the Beach.”
The update said: “The B2B segment will be presented as discontinued operations in the final results.”
In a message to the trade, On the Beach said it had ‘made the difficult decision to commence a wind down of Classic Collection and focus on our B2C business, On the Beach, where there are the strongest opportunities for growth’.
It added: “Our priority is now on supporting our colleagues, trade partners and their customers as we wind down the business and operations.” It said it wanted make the transition ‘as smooth as possible for you and your customers’.
On the Beach told travel agent partners: “We would like to sincerely thank you for your continued support and partnership. We truly value the relationships we’ve built together and we understand this announcement may cause disappointment and uncertainty. Please be assured that we are committed to looking after you, your customers, and any existing arrangements.”
All travel documentation already issued remains valid, and amends, cancellations and refunds will proceed as normal in the usual way.
But no new bookings are being taken, as of 23:59 on 23 September. This includes bookings for quotes already issued. In addition, commercial agreements have ceased from today, as have PR and marketing support. All upcoming events, conferences, fam and agent trips will no longer go ahead.
Agent incentive payments will be paid via Classic’s Black Card system on claims made up to 23:59 on 23 September. Commission will be honoured on existing bookings for future travel.
Classic Collection staff are undergoing a consultation period and agents have been told their Regional Sales Managers will not be available during the consultation. Agents have been told to contact the pre-travel team with queries and On the Beach said complaints ‘will be managed and resolved in the usual way’,
In the trading update, On the Beach said summer 2025 bookings were 12% ahead of last year, and ‘significantly ahead of the package holiday market. Winter bookings are strong, also at 12% of last year. It said summer 2026 bookings are showing a later booking trend, ‘with bookings being made increasingly closer to departure’.
On the Beach Chief Executive Shaun Morton said: “I am pleased to report another year of significant growth with record TTV of £1.23bn, representing a 11% increase on FY24. Our core B2C business has again outperformed the market, underpinned by the Group’s asset light, cash generative model and balance sheet strength.
“The team has had a busy year, with 155 Cities now on our website and a presence developed in the Republic of Ireland. Both exciting workstreams have landed well with our customers and we look forward to expanding the offer in FY26.
“It remains clear that customers are still prioritising their holidays with our Winter 25 bookings up 12% and we are confident that Summer 26 will continue to build, notwithstanding the later booking patterns.
“The Board and management team remain focused on delivering the Group’s medium-term ambition of TTV of £2.5bn, EBITDA of £100m and Adjusted PBT of £85m and I look forward to updating further at our final results in December.”
