Online booking platform Hostelworld reported record revenues of €339.5m for the first half of the year.
The Irish based company saw robust growth in bookings for hostel accommodation across all regions, with Central America, South Asia and southern European countries ahead of pre Covid-19 levels.
Net bookings totalled 3.4 million which was 64% higher than the same six month period last year.
Hostelworld reported a loss in the period of €7.5m, an improvement on the €14.3m loss the year before. It reported adjusted EBITDA of €5.1m for the first half of the year.
Gary Morrison, Chief Executive Officer, said, "I am delighted to report record generated revenues and improving adjusted EBITDA margins for the half year to date, driven by the continued execution of our Social strategy and operational cost discipline".
He said the performance also translated directly into strong growth in operating cashflow year on year, which in turn enabled the firm to strengthen its balance sheet by refinancing its legacy Covid-19 era debt facility at significantly lower interest rates. In July, the interest rate on its AIB debt facility reduced from 3.75% to 3.25% over EURIBOR, €2.5m reduction in RCF balance to €5m.
"In addition, I am very pleased to see the global hostelling category showing double digit bednight growth year on year for the first half of the year, and even stronger growth from Hostelworld with the resumption of cross border travel post Omicron in 2022," Mr Morrison said. "In particular, long-haul bookings have grown 70% year on year and 'follow on' bookings after an initial flights have grown 95% year on year.
"By geography, Europe has recorded strong year over year growth overall, with revenue growth outpacing net bookings growth through continued bed price inflation. Bookings into Southern Europe and other low-cost destinations such as Central America and South Asia have also been exceptionally strong, exceeding pre Covid-19 levels."
