The online travel agent said it remains “on track to achieve profitability for the year in line with the board’s expectations despite a number of negative external factors” in a trading statement to investors.

On the Beach said that events such as terrorist attacks in Turkey and France had affected bookings and demand throughout the Mediterranean this summer.

While the collapse of Lowcosttravelgroup earlier this month combined with the economic uncertainty and the weaker pound since the EU referendum had also affected consumer confidence.

The OTA said that these factors were affecting the lates market and it expected “a weaker outcome in this segment, resulting in significantly fewer consumers travelling this year”.

But On the Beach said it was taking market share from competitors despite “widespread discounting of seat-only and packages by some market participants”.

Chief executive Simon Cooper added: “On the Beach is proving its unique strengths and attributes against the backdrop of these challenges. Whilst revenue growth will be below our original plans as a result of market conditions, we have continued to outperform the market, stealing significant share.

“By using our scale to drive exclusivity, our technology to drive innovation and our financial strength and Atol protection to drive customer trust, we are well placed to capitalise on the structural changes in the market which will only accelerate given the unprecedented current conditions.”

On the Beach stressed that it “did not sell and has no exposure to any products sourced from the Lowcosttravelgroup”.

“Whilst the failure of Lowcosttravelgroup has been highly disruptive to consumers and to some of the group’s competitors, On the Beach has seen an immediate improvement in trading dynamics, with a higher share of market traffic, lower costs per click and improved revenue per unique visitor,” said the OTA in its trading statement.