Hostel online booking platform Hostelworld has reaffirmed its expected earnings estimate for fiscal 2018.
This is despite the fact that competition has increased in Europe, while the company is also facing headwinds from adverse foreign exchange movements as well as limited visibility on bookings in the forthcoming peak season.
In a trading update issued for its AGM today, Hostelworld said the introduction of a new free cancellation product - which improves its product offering - has resulted in growth in both volume and average value of bookings.
It also said the growth in penetration of mobile has increased the level of activity per customer but has led to a decline in bed nights per booking.
"The board is committed to a strategy which increases our technology investment and accelerates our product development so that we can continue to offer our customers the best experience in hostel booking," it added.
As previously announced, Hostelworld's Feargal Mooney is stepping down as CEO and will be replaced by Gary Morrison.
