Online booking platform Hostelworld has reported a 76% drop in revenue in the first half of 2021.
The Irish based company reported revenue of €2.9m for the first six months of the year, down from €12m during the same period last year.
Bookings were down 73% during the period to 300,000, compared to 1.1m in the first half of 2020.
However, Hostelworld said it is starting to see customer demand return in regions where travel restrictions have eased.
It said the recovery started with domestic demand in the US and Australia followed by stronger growth into several European destinations throughout the second quarter.
"Overall, we continue to expect the pace to mirror changes in individual markets over the coming months, both positive and negative.
"Outside of these geographies, demand continues to remain very depressed," the company said.
On the supply side, Gary Morrison, Chief Executive Officer of Hostelworld said that despite the continuing depressed demand during the first half of the year, they have only seen a very modest reduction in the number of hostels on their platform compared to levels at the end of 2020.
"I am also encouraged to see our customers are continuing to book dorms in the majority of cases, with only a modest shift towards private rooms compared to 2019 levels," Mr Morrison said.
Hostelworld had a closing cash position of €33.7m by the end of the first half of the year.
The company said that in light of continued market uncertainty, it is not in a position to provide full year guidance until the overall impact of Covid-19 on the company becomes clearer.
