Hostelworld books record half-year revenues of €51.5m as demand recovers since Covid

Hostelworld has reported record half-year revenues on the back of strong bookings growth in key markets. The hostel-booking company has been capitalising on a strong recovery in demand since Covid.

In a trading update, it said revenue for the six months to the end of June this year rose by 57 per cent to €51.5 million, which the company said was a record.

Net bookings rose by 64 per cent to 3.4 million, “driven by strong performances in key European, Asian and Oceania markets”, it said.

Net average booking value of €15.15 was down 4 per cent year on year, however, “driven by a greater proportion of Asian destination bookings, partially offset by continued bed price inflation”.

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The company reported an adjusted earnings before interest, tax, depreciation and amortisation (ebitda) of €5.1 million compared to a loss of €5.2 million for the same period last year.

[ Hostelworld returns to profitable growth as Omicron effect recedes ]

Hostelworld reiterated its earnings guidance of adjusted ebitda in the range of €16.5 million to €17 million for the full year, “absent of any deterioration in the macro-economic environment, the reintroduction of Covid restrictions or air travel disruptions”.

The company’s chief executive, Gary Morrison, said: “I am very proud of our performance for the year to date. In particular, I am delighted that we have delivered record generated revenues and improving ebitda margins driven by our differentiated social growth strategy and a continuing focus on operational excellence and cost discipline.

“Looking further ahead, I remain very confident that our innovative, asset-light business model is well positioned, well financed and firmly on track to deliver against our long-term growth goals outlined in our capital markets day presentation last November,” he said.