On The Beach shares plummet 13.5% as Middle East conflict dampens holiday demand
Shares in online travel agent On The Beach have fallen sharply after demand for holidays dropped due to the Middle East conflict. The company's stock is now down 13.5%, with its valuation hitting a low not seen since the COVID-19 pandemic. Despite this, the firm remains profitable and continues to generate cash.
The company had a strong 2025, with bookings rising by 10% and repeat customers up by 19%. It also recorded its busiest trading day ever on 1st February 2026, alongside a 34% increase in travel volumes during the second quarter. Investment in technology allowed rapid growth in city break packages, expanding its offerings to over 180 destinations.
However, the ongoing Middle East conflict has disrupted demand, particularly for holidays to Turkey, Greece, Cyprus, and Egypt. As a result, On The Beach has withdrawn its annual profit forecast of £39m to £43m. The group will release its interim results for the six months ending 31st March 2026 on 12th May.
While the company has limited direct exposure to Middle East destinations, the broader uncertainty has affected bookings. No specific customer support measures were documented in the early weeks following the conflict's outbreak.
The conflict's impact on travel demand has forced On The Beach to adjust its financial outlook. The company's asset-light model has helped it stay profitable despite the downturn. Investors will watch closely when interim results are published next month.
