Tuesday October 15, 2024 10:02 a.m.
| Updated:
Tuesday October 15, 2024 12:42 p.m.
Online travel agency Hostelworld Group has recorded strong performance year-to-date, driven by an increase in demand from budget and solo travelers.
The Irish company, listed in London, recorded record bookings in Asia and Central America. within six months until June 30.
While bookings increased 7% year-over-year, the average value of a booking continued to decline as solo and budget travel continues to accelerate.
Hostels in Asia – particularly Southeast Asia – tend to be cheaper than in other parts of the world.
The fall in the value of bookings caused net revenue to fall 2 per cent year-on-year to €72.3m (£60.3m).
Operating costs amounted to 18.7 million euros, down 3 percent year-on-year, while adjusted earnings for interest, taxes, depreciation and amortization (EBITDA) came to 17.3 million euros, up 28 percent year-on-year.
Social network Hostelworld continued to generate a high number of bookings, with 80 percent of bookings made by “social members”, compared to 67 percent last year.
The travel platform said the growth of its social network translated into net margin growth of ten percent.
Chief executive Gary Morrison said: “I am pleased with our year-to-date performance, which has been driven by strong consumer demand in Europe, the UK and North America to destinations at low prices in Asia and Central America. »
The strong cash-generative nature of this business allowed us to return the balance sheet to a net cash position in the third quarter of 2024, as previously planned.
“In addition to our strong financial performance, I am also pleased with the continued impressive performance of our social network, where marketing spend as a proportion of revenue has significantly improved year-over-year .
“Looking forward, I remain very confident in our business model and our continued success in building a platform for long-term profitable growth. »
