Record profits for OHG and Peter Brown joins board

On Holiday Group has brought in ex Monarch Airlines chief executive Peter Brown as a non-executive director.

The group said it would use Brown’s tour operating and aviation experience to grow the group as it announced “record profits” of £1.4 million to the year ended October 31.

OHG is currently vying with Lowcost Holiday Group for a potentially lucrative contract with EasyJet that is looking to increase its package holiday business in the UK.

Although an announcement on which company has been successful was expected was thought to be due this month, possibly during World Travel Market, it is thought this time line has slipped.

Announcing Brown’s appointment today OGH chief executive Steve Endacott said: “I have worked closely with Peter in the past and look forward to working with him again. Peter’s tour operating and aviation experience will be invaluable in the development of the group over the next few years.”

Brown added: “The growth of the dynamic packaging sector in the UK has been phenomenal over the last five years and the On Holiday Group’s management has been at the forefront of this development.

“It is therefore with great pleasure that I have accepted the opportunity to help guide its growth, during this next stage of its European expansion.”

As part of its end of year results announcement OHG said it generated over 50,000 bookings from non-UK residents in the first year of its German and Spanish operations. Further expansion into Canada, France and Italy are planned for 2011.

This non-UK business helped the group to hit 600,000 passengers, a 25% increase during a year in which it said it also reduced overheads by 10%.

OHG said it believed the UK bed bank sector is now relatively mature, with the biggest players becoming bigger and smaller players being forced out of the market.

Endacott added: “OHG operates within a commodity market place which has simple rules. Drive the highest volume, through the lowest possible overhead using technology to drive efficiency.

“The barriers to entry are now substantial, as a bed bank needs to carry over 350,000 passengers to break even these days.”

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