Listed travel companies received an immediate boost in the wake of the Thomas Cook collapse, with analysts suggesting the resulting impact on capacity could have a positive effect on rivals.
Share prices in Tui, Jet2 owner Dart Group and On The Beach rose first thing on Monday alongside those of Ryanair, easyJet and IAG.
On The Beach issued a statement to say it was expecting to take a one-off hit from the collapse, but the OTA was still being tipped to benefit in the long-term.
Analyst Liberum estimated the one-off payment to be in the region of £7 million but said there was potential to increase profits by £10-15 million in the medium term.
In a Buy note to investors, it said: “[Thomas Cook’s collapse] will cause short term disruption to the industry but will likely result in significant market share gains for OTB over the medium/longer term.”
It added that On the Beach’s position had been made stronger by the launch of its offline and B2B operations.
The note said: “The launch of Classic Package Holidays and 1,300 agents already active on its B2B portal gives OTB huge opportunity to capture significant market share across all channels. This should become evident in 2H 2020 with significant implications for 2021 and thereafter.
“If OTB holds its market share then this could imply 33% increase in business, equivalent of an additional £10-£15m EBITDA based on our preliminary analysis.”
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