Irish online accommodation booking company Hostelworld has said that net booking volumes are back up to 83% of pre-pandemic 2019 levels.
The company said travel recovery in the Asia and Oceania regions, in particular, has driven the rebound and that it should now finish this year with a “modest” profit.
Gary Morrison, Hostelworld goup chief executive said: “I am very encouraged by the clear financial and operational progress we have delivered year to date. In particular, I am very pleased with the positive trends we are seeing from our innovative ‘Social’ strategy which is driving more customers to use our Apps, and reduced marketing as a percentage of Net Revenue.
“In parallel, I am also pleased to welcome new research published by Bureau Veritas which confirms that hostels produce on average 75% less carbon than hotels. We know travellers are increasingly environmentally conscious, constantly looking for ways to minimise their carbon footprint while visiting new destinations. This report confirms that hostels are the sustainable tourism choice.“
In terms of performance outlook, Hostelworld said that – based on the current business performance and trajectory – it now expects to be modestly EBITDA positive for this financial year.
“Given our continued momentum, the outlook for 2023 is encouraging and we expect our growth strategy to continue to deliver further significant benefits in 2023 and beyond,” it said in a trading update.
Mr Morrison said: “While recognising that wider macro-economic conditions are challenging and highly volatile, I remain very encouraged by the growth outlook for our business, underpinned by our highly differentiated Social strategy, data driven marketing allocation and disciplined cost control.”