Hostelworld’s revenue 4% higher than pre-pandemic
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Hostelworld revenues are higher than pre-pandemic as new social networking strategy pays off
- The company, which started in 1999, is headquartered in Dublin
- Shares of Hostelworld were up 0.87% on Wednesday morning, trading at 76.56p
- Based on current performance, the company expects to be ‘modest EBITDA positive for fiscal year 2022’
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Hostelworld net revenue for September was 4 percent higher than in 2019, and bookings were also back on track after the pandemic.
The Dublin-based company reported net bookings reached 83 percent of 2019 levels last month, “driven by the ongoing recovery of the Asia and Oceania regions”, which have now grown to 70 percent of 2019 levels, compared to 43 percent. percent in June.
Hostelworld also attributed the increase in bookings to its new social networking strategy, which resulted in ‘strong week-to-week growth’ in the number of customers signing up for the app.
Hostelworld has revealed net revenues for September were 4 percent higher than in 2019, with bookings also back on track after the pandemic
The company, which began operations in 1999, said in a statement: “In particular, by the end of September, nearly 50 percent of all customers had signed up for the platform (since its launch in April); significantly increase booking volume through our apps.
“This, along with strong growth in net bookings and average booking value (ABV), has translated into higher revenues, lower marketing costs and improved margins.”
Shares of Hostelworld were up 1.5 percent, trading at 77p Wednesday afternoon.
Based on current performance, the company expects to be “modest EBITDA positive for fiscal year 2022.”
It also notes that the outlook for 2023 is “encouraging” and expects its growth strategy to “continue to deliver significant benefits in FY 2023 and beyond.”
CEO Gary Morrison said: “I am very encouraged by the clear financial and operational progress we have made to date. In particular, I’m very pleased with the positive trends we see in our innovative ‘social’ strategy, which is driving more customers to use our Apps, and reducing marketing as a percentage of net revenue.
‘At the same time, I am pleased with the new Bureau Veritas research that confirms that hostels produce on average 75 percent less CO2 than hotels.
“We know that travelers are becoming more environmentally conscious and are constantly looking for ways to minimize their carbon footprint as they visit new destinations. This report confirms that hostels are the choice for sustainable tourism.
“While recognizing that the broader macroeconomic environment is challenging and highly volatile, I remain deeply encouraged by the growth prospects for our business, supported by our highly differentiated social strategy, data-driven marketing allocation and disciplined cost control.”