On the Beach is to move to a larger head office in Manchester to support its growth plans.
The lease has been signed for new digital headquarters scheduled to open by the end of 2018.
The company announced the plans as it reported a 19% jump in revenue to £45.3 million and a 15% growth in adjusted profit before tax to £14 million for the six months ending March 31.
The profit included the estimated impact of £1.1m for lost bookings due to winter seat availability and seat pricing following the Monarch failure
Chief executive Simon Cooper said: "On the Beach has delivered a solid performance in H1, with strong booking and share growth supported by some modest and tactical discounting. Booking growth strengthened towards the end of the period and has continued into H2."
He said flight capacity constriction following Monarch’s collapse had pushed up seat prices and caused a drop in bookings.
"The position regarding flight capacity continues to recover as incremental capacity has been scheduled which alleviates this constriction," he said.
"Given the resilient and flexible nature of our business model, the Board remains confident in delivering a full year result in line with management’s expectations, taking into account the one-off impact of flight capacity constraints as a result of the Monarch failure and the accelerated investment to support International growth."
The group also confirmed that non-executive chairman Richard Segal is to stand down.
Segal, who has been chairman for nearly five years, will be succeeded by senior independent non-executive director Lee Ginsberg.
