Hostelworld, the budget travel organisation, reported a significant increase in adjusted profits for the first half of the year in their Wednesday trading update. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) notably soared 88 per cent to €9.6 million in the six months concluding in June, compared to the previous €5.1 million, according to the online travel company.
This augmentation in earnings was attributed to a surge in booking numbers, particularly from the Asian and Central American markets. However, the impact of this increase was somewhat counterbalanced by the reduction in average earnings per booking, given the lower cost of these markets compared to the rest of the globe. Consequently, the firm’s net profit for this period experienced only a slight increase of 1 per cent compared to the previous year, reaching €46.4 million.
Meanwhile, bookings escalated by 9 per cent, hitting 3.7 million, and operating expenses slightly fell by 2 per cent to €12.5 million. Established in Dublin in 1999, Hostelworld was designed to assist hostels globally in managing their accommodation and connecting with clients.
In April 2022, the “solo system” was officially rolled out by the group, catering to individuals who prefer solo travelling and want to socialise with new people. By the first half of 2024, these solo adventurers made up 80 per cent of all bookings, increasing by six percentage points.
When the 2023 results were released in March, the group stated that bookings had escalated 37 per cent from the previous year to 6.5 million. With nearly 230 staff members, Hostelworld also has partnerships with hostels in 180+ countries.
CEO of Hostelworld, Gary Morrison, expressed his optimism in the company’s growth strategy, stating they have a strong financial position and are on the right path to meet their objectives. The company reported a net debt of €2.6 million at the end of June and has consented to repay €9.6 million in deferred taxes accumulated during the Covid-19 pandemic.