Bookings at Irish online travel agent Hostelworld rose 7 per cent in the period up to the end of September as record performances in Asia and Central America drove growth.
The company had a total of 5.4 million bookings up to September 30th, the company said in a trading update. But average value fell 9 per cent to €13.54, as a combination of lower priced destinations and an increase in solo travellers reduced figures.
Net revenue, which excludes cancellations, deferred revenue, rebates and accounting adjustments, was €72.3 million for the year to date, down 2 per cent year on year.
Operating costs were 3 per cent lower at €18.7 million. The company reduced direct marketing expenses to 46 per cent of revenue, down 5 per cent year on year, with Hostelworld’s social network bookings rising to 80 per cent as the platform continued to drive bookings.
Adjusted earnings before interest, tax, depreciation and amortisation was almost 30 per cent higher at €17.8 million.
Chief executive Gary Morrison said he was pleased with the group’s performance year to date. “The strong cash generative nature of this business has seen us return the balance sheet to a net cash position in quarter three of 2024, as previously guided,” he said. “Looking ahead, I remain very confident in our business model and our continued success in building a platform for long-term profitable growth.”
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