Hostelworld – the Irish-founded online accommodation booking service – is planning to expand its travel product range and grow through acquisition as it looks to boost shareholder value.
The company outlined its medium-term growth strategy at an investors day event in London, today.
Hostelworld’s medium-term strategy is centred on three key pillars:
- Strengthening the core business through increased hostel inventory, enhanced social platform capabilities powered by AI and enhanced marketplace monetisation to increase revenues
- Expanding the addressable market
- Supplementing our hostel inventory with additional budget accommodation options to increase customer growth and conversion rates
- Expanding our travel product range to include additional products that are highly relevant to youth travellers
- Leveraging the value of expanding, proprietary social network data set to unlock new and exciting revenue streams
3. Selective M&A: Exploring complementary acquisitions aligned with our strategic objectives that can accelerate growth, extend our capabilities and help drive incremental shareholder returns.
In terms of a trading update, Hostelworld said: “The group continues to deliver a resilient performance, despite the recent weakening of the US dollar and a persistent shift in traveller preferences towards lower-cost destinations; both of which are leading to a less favourable booking mix and average booking value (ABV).
“While it is still early in the year and the summer booking season hasn’t yet reached its peak, if current trends persist, we anticipate achieving mid-single-digit revenue growth for the full year.”
