Hostelworld: Bookings at travel agency buoyed by budget trips

Online travel agency Hostelworld Group has reported a strong performance in the year-to-date, driven by an increase in demand from budget and solo travellers.

The Irish company, which is listed in London, reported record bookings in Asia and Central America in the six months to June 30.

While bookings rose by seven per cent year on year, the average value of a booking continued to decline as solo travelling and budget trips continue to pick up speed. 

Hostels in Asia – particularly South-east Asia – tend to be cheaper than in other parts of the world. 

The dip in booking value caused net revenue to fall by two per cent year on year, to €72.3m (£60.3m). 

Operating costs were €18.7m, down three per cent year on year, while adjusted earnings for interest, tax, depreciation and amortisation (EBITDA) were €17.3m, up 28 per cent year on year. 

Hostelworld’s social network continued to drive a high number of bookings, with 80 per cent of bookings made by ‘social members’, up from 67 per cent last year.

The travel platform said that growth of its social network resulted in a net margin growth of ten per cent. 

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.

“Looking ahead, I remain very confident in our business model and our continued success in building a platform for long-term profitable growth.”