Irish-founded accommodation booking website Hostelworld has said it has seen an improvement in net bookings in recent months, with growth returning in late May and continuing the positive momentum into June and July.
The company said the rollout of Elevate – its new marketplace monetisation tool – has shown early signs of success and social media engagement is also improving.
Hostelworld had net bookings of 3.7 million in the first half of this year – in line with the same period last year. Operating profits, for the first half, were down 47% at €2.1m, but the company has reinstated its progressive dividend policy and share buyback programme and said it remains confident in its growth strategy.
Hostelworld CEO Gary Morrison, said: “I am pleased to report solid progress on our strategic roadmap presented at our Capital Markets Day in April. While the first half was impacted by several external factors, we saw encouraging positive trends in late May, which have continued through into June and July, including growth in booking volumes and average booking values.
“Our strategic initiatives, particularly the early success of our ‘Elevate’ marketplace tool, are delivering a positive impact on our trading performance. With continued innovation in our social network, we have seen significant growth in engagement. The number of messages sent has increased by 42% on a trailing 6-month basis. This deep engagement continues to drive growth in app bookings, which are up 11% year-on-year. The number of social members also saw substantial growth, reaching ~3 million by the end of June 2025, up from 1.8 million in June 2024.
“We continue to evaluate acquisition opportunities as outlined in our CMD presentation. Reflecting our balanced approach to capital allocation and our commitment to long-term growth in shareholder value, we announced a £5 million share buyback programme on 19 June, alongside the reinstatement of a progressive dividend policy. We expect the interim dividend to be paid on 19th September 2025.
“Overall, I am encouraged by the results of the foundational work laid in the first half, which positions us strongly for sustained growth from 2026 and beyond, and for delivering on our Vision to be the world’s leading social travel platform.”
