The terrace at the Freehand hostel in Los Angeles
(Picture: Hostelworld )Hostelworld the accommodation service catering to international travellers expects to end its financial year in a “modest earnings positive” as bookings have rebounded post-pandemic.
The global business was hit hard during the outbreak of Covid across the world but has reported net revenue in September of 104% of pre-Covid 2019 levels with bookings hitting 83% of that target.
Business showed a positive upswing in the Asia and Oceania territory that has increased to 70% of 2019 levels last month compared to 43% in June.
The company said that since it had launched a social network strategy earlier this year, it had seen strong growth week over week in the number of customers signing up to its app-based social platform when they make a booking.
Almost 50% of customers had signed up to the platform by September since its launch in April “driving a significant increase in the volume of bookings” through the app, according to Hostelworld.
Gary Morrison, boss of the company, said he was “very encouraged” by the “clear financial and operational progress” of the business.
“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.
“I want to personally thank the entire Hostelworld team for their efforts in building the strong operating platform we have today as I look forward with confidence on the journey ahead to continued profitable growth,” he said.
The company added: “In summary, all geographies continue to see a strong recovery in demand. Bookings and average booking values (ABV) are trending positively, cancellation rates are in line with expectations, and our marketing spend is significantly reduced as the benefits of our social features continues to materialise.”
