Online travel agent On the Beach has reported a 16% leap in sales for this year compared to pre-pandemic.

In a trading update for the year to the end of September, the OTA said sales for the second half of the year were up 25% on the same period of 2019.

Crucially, it said these were all new sales, not rebookings, as the OTA never issued refund credit notes (RCN) for holidays that were cancelled during the pandemic.

On the Beach said that once customers of rival companies have used up their RCNs this year, it believes its ‘enhanced proposition and reputation’ will allow it to target those customers in 2023.

The OTA said it had seen an 83% rise in five-star holiday sales due to ‘improved access to a broader hotel portfolio’, which had led to a 31% increase in its average booking value.

Conversely, the lates market for value holidays has ‘remained subdued’, with sales of three-star holidays 18% below 2019, said On the Beach. It said this was partly due to the cost of living crisis.

B2B sales were up 45% and long-haul sales rose 257%, it said.

Chief executive Simon Cooper added: “Despite the tougher trading conditions at the end of the year, the strength of the Group’s balance sheet ensures we are well placed to deliver further strategic progress in FY23, and the Board will continue to appraise opportunities for growth.”

It will deliver its preliminary results on 8 December 2022.