Hostelworld bookings continue to drag behind pre-pandemic levels
Hostelworld said despite the continuing recovery of Asia and Oceania, bookings were still dragging behind pre-pandemic levels.
In a trading update, the travel firm said September reached 83 per cent of 2019 levels, which was up from 43 per cent in June.
However, net revenue last month reached 104 per cent of 2019 levels, reflecting the sustained growth in average booking value and normalisation of cancellation rates throughout the year.
The company also said that tighter spend on marketing means that it now expects the closing cash balance to be higher than originally expected.
Earlier this year, the firm launched ‘Solo System’ – a set of digital social features that helps travellers connect and meet in real life.
Hostelworld chief Gary Morrison said: “I am very encouraged by the clear financial and operational progress we have delivered year to date.
In particular, I am very pleased with the positive trends we are seeing from our innovative ‘Social’ strategy which is driving more customers to use our Apps, and reduced marketing as a percentage of Net Revenue.”
The hostel firm said it now expects to finish the year modestly EBITDA positive and with a stronger cash position than originally expected.