Hostelworld revenues plummet as bookings collapse
Hostelworld saw its revenues collapse last year as the coronavirus pandemic put paid to booking volumes at the budget holiday firm.
The company said that net bookings had fallen nearly four-fifths during the year, sinking its revenue from €80.7m to €15.4m.
The fall meant the firm swung to an earnings loss of €17.3m, down from a €20.5m profit in 2019.
It also booked €6.2m in cancellations fees as travellers were forced to scrap their plans due to the pandemic.
As a result of the challenging year, Hostelworld said that it would not pay out a dividend for the year.
It also said it could not provide any financial guidance as to the coming 12 months.
In a bid to shore up its finances, Hostelworld raised €15.2m through an equity placing last June, and has also agreed a new €30m loan facility.
It also made a combined €50m in savings through reducing marketing spend and administrative expenses.
Chief executive Gary Morrison said that he was confident that the firm’s “loyal customer base’ would begin to travel again when restrictions were lifted.
“I continue to see significant opportunities to build a broader catalogue of relevant
experiential travel products and services beyond hostel accommodation, and opportunities to connect like-minded travellers with each other via social features on our platform”, he said.
“I remain confident that Hostelworld will emerge from the pandemic stronger than before and able to seize market opportunities when normal travel patterns resume”.