Central America and South Asia trips see Hostelworld to narrowed losses
Hostelworld saw record revenues of €51.5m (£44.48m) in its six-month interim results this morning, as bookings surged past pre-pandemic levels in all major regions.
The travel platform said net bookings had reached 3.4m, a 64 per cent year-on-year jump, as budding travellers flocked to Central America, South Asia and Southern Europe.
This helped the company narrow losses from €14.3m to €7.5m.
Gary Morrison, Chief Executive Officer, said: “I am delighted to report record generated revenues and improving adjusted EBITDA margins for the half year to date, driven by the continued execution of our Social strategy and operational cost discipline.”
Morrison said the “global hostelling category” had seen “double digit bednight growth year on year for the first half of the year… with the resumption of cross border travel post Omicron in 2022.”
Long-haul bookings have been a particular beneficiary of eased travel restrictions, growing 70 per cent this year, with trips to Central America and South Asia particularly popular.
Hostelworld has long been a favourite of travellers looking to rent a cheap bed for the night, but suffered amid sluggish demand after the pandemic.
However, resurgent travel demand this year and so-called bed price inflation, has seen the firm net bumper revenues despite global inflationary trends.
However, it did note a 4 per cent decrease in average booking values on the back of the higher demand for its Asian offerings, which now sit at €15.15 – although this was offset by continued hikes in the price of its beds.