Hostelworld has said that its EBITDA for the full year to December 2018 is expected to be in line with the Board's expectations.
In a trading update today, the company said that growth in group like-for-like gross bookings is likely to be flat for the full year, given the expected declines in its supporting brands.
But it said that continued effective management of its cost base is helping to offset the impact of flat bookings.
"We continue to see strong underlying cash conversion in 2018. The rollout of our free cancellation product has started well and cancellation rates are performing in line with expectations," the company added.
The company also said that the initiatives identified as part of the strategic review will require additional investment during 2019, with growth in bookings expected to be seen in 2020.
Over the last few months, the company's new CEO Gary Morrison has identified and developed a roadmap for growth and has strengthened the management team to capitalise on what he called "the significant opportunities for the business".
The company recently appointed a new CFO and there have been a number of internal promotions.
