The collapse of Monarch airlines last year freed up some capacity in the rather crowded budget holiday space, much to the benefit of On the Beach (OTB). Its failure led to “significant” year-on-year seat price increases for winter holidays. However, this effect may be short-lived as other airlines swoop in to fill the gap left by Monarch, and so summer seat prices should stay roughly flat on last year.
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Still, demand for summer holidays in the Eastern Mediterranean has picked up after terror fears previously dented their popularity. Between organic growth and last year’s acquisition of Sunshine.co.uk, the online travel agent reported that revenue growth was up by nearly a quarter in the first four months of its financial year.
