The Irish digital travel agent, Hostelworld, reported a 7% increase in bookings until the end of September, spurred by remarkable success in Asian and Central American markets. The firm revealed in their trading update that their total bookings during this period amounted to 5.4 million. However, the average value dipped by 9% to €13.54, due to the influx of solo travellers and cheaper travel destinations.
Excluding cancellations, deferred income, reimbursements and accounting changes, the company’s net income for the year until now was €72.3 million, a 2% decrease from the previous year. The company managed to decrease operating expenses by 3% totalling €18.7 million. Direct advertising costs were cut to 46% of revenue, 5% less year on year, as 80% of bookings came from Hostelworld’s social network platform.
Adjusted earnings before interest, tax, amortisation and depreciation stood 30% higher at €17.8 million. CEO Gary Morrison expressed satisfaction with the company’s performance so far. He stated: “Our business’s solid cash-producing nature has enabled us to restore our balance sheet to a net cash situation in the third quarter of 2024, as we had previously indicated.” He expressed a strong belief in their business scheme and their ongoing success in constructing a platform for lasting profitable growth.