Bookings at Hostelworld were strong in the first half of the year as the company’s investment in its social strategy paid off, and activity in Asia and Central America reached records.
The hostel-booking company, which targets millennial and Gen-Z backpackers, said net bookings in the first six months of 2024 were 3.7 million, up 9 per cent year on year.
Net revenue for the first half of the year was €46.4 million, up 1 per cent year on year, while operating profit was €4 million, swinging back from a loss of €1.7 million a year earlier. Operating costs fell 2 per cent to €12.5 million.
“This performance, coupled with operating cost discipline, has translated directly into strong operating cashflow enabling us to fully repay our residual debt facility with AIB, two years ahead of schedule,” said chief executive Gary Morrison.
The net average booking value was €13.60, down 10 per cent year on year as Asian destination bookings accounted for a greater proportion of its business. The number of solo traveller bookings also contributed to this figure, rising slightly and pushing down the average value.
Direct marketing fell as a percentage of revenue, from 51 per cent in 2023 to 45 per cent this year, helping to boost margins.
Hostelworld has invested significantly in its social network strategy as a means of driving growth. The company said the proportion of bookings from social members increased to 80 per cent in the first half of the year, up from 66 per cent in the same period in 2023.
That investment has it positioned for further growth, the company said, with the company growing its hostel supply and market coverage increasing 3 per cent year on year.
“We have continued to provide our customers with enhanced social network product features, added more hostel inventory to our platform, and have continued to upgrade our platform towards a fully cloud native architecture,” Mr Morrison said.
The company reaffirmed its full year earnings guidance of adjusted EBITDA in line with market consensus.
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