Travel agent On the Beach cuts summer holidays over fears it may get burnt

An online travel agent specialising in beach holidays lost more than 10 per cent of its value yesterday after effectively cancelling trading this summer.

Shares of On the Beach Group slumped in response to Wednesday’s announcement after the market had closed that it was extending its “off-sale” period for holidays from the end of June to the end of August.

It said that its decision was a response to the government’s launch of a traffic light system for this Monday’s resumption of leisure travel, under which destinations such as Spain and Greece have been classified as amber and Turkey as red.

The company said consumer research showed “a market-wide lack of appetite for booking amber destinations, as well as the likely loss of customer goodwill