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Hostelworld achieves record first half revenues

Hostelworld achieved record revenues in the first half of the year as bookings soared by 64% to reach 3.4 million.

The budget accommodation OTA reported a 57% rise in gross transaction value to €339.5 million and a 57% boost in revenues to €51.5 million in the six months to June 30.

The heightened bookings levels came as a result strong performances in key European, Asian and Oceania markets, according to the company.

The net average booking value was down 4% year-on-year to €15.15 driven by a greater proportion of Asian destination bookings, partially offset by continued bed price inflation.

Despite this, adjusted earnings [ebitda] for the six months same in at €5.1 million compared to a loss of €5.2 million in the same period last year 

This enabled the group to reiterate guidance of adjusted full year ebidta in the range of €16.5 million to €17 million, in the absence of any deterioration in the macro-economic environment, the reintroduction of Covid restrictions or air travel disruptions.

In a trading update, 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.”

The group is due report its half year results for the six months to June 30 on August 10.

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