Annual bookings achieved by Hostelworld have risen to 5.4 million due to rising demand for low cost destinations in Asia and Central America.
The seven per cent year-on-year increase was disclosed in a trading update today (Tuesday) reiterating strong consumer interest in the two regions.
This came despite the budget accommodation OTA reporting that average net booking values dropped by nine per cent to €13.54 due to a greater proportion of Asian destination bookings and a slight increase in the proportion of solo customers.
Profits [ebitda] for the year to September 30 rose 28% to €17.8 million even with net revenue falling by two per cent to €72.3 million.
The proportion of bookings achieved via the firm’s social network members increased to 80% from 67% in the previous 12 months.
Group chief executive Gary Morrison said: “I am pleased with our performance year to date, which has been driven by strong consumer demand from Europe, the UK and North America to low-cost destinations in Asia and Central America.
“The strong cash generative nature of this business has seen us return the balance sheet to a net cash position in quarter three of 2024, as previously guided.
“In addition to our strong financial performance, I am equally pleased with the continued impressive performance of our Social Network, as a result of which, marketing expense as a proportion of revenue has improved significantly year-on-year.
“This has resulted in a net margin growth of 10% and combined with our continued focus on cost, has delivered a 28% increase in adjusted ebitda year-on-year.
“Looking ahead, I remain very confident in our business model and our continued success in building a platform for long-term profitable growth.”