Irish-based online booking platform Hostelworld has reported record revenues of €339.5m for the first half of the year. The company experienced robust growth in bookings for hostel accommodation across all regions, with Central America, South Asia, and southern European countries surpassing pre-pandemic levels. Net bookings totaled 3.4 million, a 64% increase compared to the same period last year. Hostelworld reported a loss of €7.5m, an improvement from the €14.3m loss in the previous year. However, it recorded an adjusted EBITDA of €5.1m for the first half of the year.
Gary Morrison, the Chief Executive Officer, expressed delight at the record revenues and improved EBITDA margins, attributing the success to the company’s execution of its Social strategy and cost discipline. The company’s performance translated into strong growth in operating cash flow, allowing it to refinance its legacy Covid-19 debt facility at significantly lower interest rates. In July, Hostelworld’s interest rate on its AIB debt facility reduced from 3.75% to 3.25% over EURIBOR, resulting in a €2.5m reduction in RCF balance to €5m.
Morrison also highlighted the strong growth in the global hostelling category during the first half of the year. He noted that long-haul bookings grew by 70% year on year, and ‘follow on’ bookings after an initial flight increased by 95% year on year. Additionally, Europe recorded strong overall year-over-year growth, with revenue growth surpassing net bookings growth due to continued bed price inflation. Bookings into Southern Europe and other low-cost destinations such as Central America and South Asia experienced exceptional strength, surpassing pre-pandemic levels.
Overall, Hostelworld’s performance in the first half of the year has been positive, with record revenues, increased bookings, and improved financial results. The company’s strategic execution, operational cost discipline, and refinancing efforts have contributed to its success. The growth in the hostelling category, particularly in long-haul bookings and follow-on bookings, is a positive sign for the industry’s recovery. With strong growth in various regions and the resumption of cross-border travel, Hostelworld is well-positioned for future success.