On the Beach grew its UK revenue by 23% in the four months to 31 January, driven by growth in its core business and substantially higher revenues from Sunshine.co.uk, which it acquired last May.
The reduction in overall capacity in the market following the Monarch failure led to significant year on year seat price increases for winter departures.
Although other carriers have added incremental capacity, this is primarily for departures from Easter 2018 onwards with the effect that summer 2018 seat prices have remained broadly flat.
On the Beach said these pricing factors, together with a return of customer demand for destinations in the Eastern Mediterranean, are helping to drive strong bookings growth for summer 2018 departures and are more than offsetting any weakness in the market for late winter departures.
The international sites in Sweden and Norway have continued to show strong growth and the group will shortly launch its international proposition, www.ebeach, into its third market Denmark.
Simon Cooper, chief executive of On the Beach Group, said: "The first four months of the new financial year has delivered another solid period of growth for the On the Beach, Sunshine and ebeach brands.
"Our strategy of investing in our brands, talent and technology to drive growth has delivered performance in line with the board's expectations, with consumers attracted to our wide range of value for money beach holidays.
"Our third nationwide television advertising campaign started on Christmas Day and has helped drive this strong performance as our brand awareness continues to grow.
"The board remains confident in the group's outlook and will continue to evaluate opportunities to enhance its market share position."