Hostelworld says weak consumer sentiment in EU hitting demand

Irish company, which held its AGM on Friday, expects to meet target for ’modest earnings’ for the year

Tom Kennedy and Ray Nolan, founders of  travel website Hostelworld. Photograph: Bryan O’Brien

Tom Kennedy and Ray Nolan, founders of travel website Hostelworld. Photograph: Bryan O’Brien

 

Irish travel website Hostelworld has highlighted weak consumer sentiment in key EU markets as having led to some softness in demand for bookings in recent months, but nonetheless insisted it was on track to meet this year’s targets.

At its annual general meeting in Dublin, Hostelworld chairman Michael Cawley said the company was looking forward to the “important summer season”.

“I am pleased to report that the group continues to make progress on its road map for growth programme with investment across a number of key initiatives underway,” he said. “As previously announced, 2019 is a year of investment to fund the growth drivers in 2020.

“One of our key focus areas is strengthening the capability of our core platform to improve its flexibility and the experience for customers, and we look forward to providing an update on progress against this and other initiatives as part of our interim results in August.

“Hostelworld continues to operate in a highly competitive market where weak consumer sentiment in key EU markets has led to some softness in demand for bookings in recent months.

“While the important summer season is still ahead of us, we currently expect to meet the board’s expectation of modest earnings before interest, taxes, depreciation, and amortisation growth for the full year.”

The global hostel-focused online booking platform will report its interim results for the six months ended June 30th, on August 20th.