Ryanair should follow easyJet’s lead and enter the package holiday market by buying On the Beach and Loveholidays, according to travel industry veteran Steve Endacott. In an analysis published on Travel Weekly, Endacott argues that such a move could deliver “an excellent return on investment” and transform Ryanair’s profit potential.
“Maths doesn’t lie,” he said. “Buying these companies would give Ryanair an immediate foothold in the holiday market and allow it to boost profits per passenger by up to £50. That’s a game-changer when you’re talking about millions of customers.”
Endacott’s research shows how easyJet holidays has proven the value of the package market. In 2024, the division carried 2.6 million customers, just 5% of easyJet’s total passengers, but generated £190 million in profit, nearly a third of the airline’s overall earnings.
While easyJet earns about £13 from a seat-only passenger, package holiday customers bring in over £73 each. Endacott said Ryanair could achieve similar results by eliminating high advertising costs through its own website traffic and cutting overheads.
“On the Beach and Loveholidays already have strong brands and experienced buying teams,” he said. “Combine that with Ryanair’s scale and direct booking power, and you could see annual profits rise from £94 million to around £444 million.”
Endacott estimated that, even if Ryanair paid £1 billion for both companies, the investment could pay for itself in just over two years.
He also dismissed concerns that rival airlines would refuse to supply seats to the two brands if Ryanair owned them. “The majority of their seat supply already comes from Ryanair, long-haul carriers, and Turkish Airlines. EasyJet and Jet2 are not their main suppliers,” he said.
With Loveholidays still in the hands of venture capital funds and On the Beach’s share price relatively low, Endacott insists the timing is right.
“In my opinion, it’s a no-brainer,” he added. “The only question is whether Ryanair has the appetite to make such a bold move.”