Hostelworld seeing continued soft demand

Hostelworld seeing continued soft demand

Online accommodation booking company Hostelworld has said it has seen continued “softness” in demand over recent months.

The update follows on from a poor set of annual results in April, when Hostelworld reported a near-€5m drop in revenue for 2018 to just over €82m, said adjusted earnings fell by nearly 20% to €21.4m, and said group bookings were flat.

“Hostelworld continues to operate in a highly competitive market where weak consumer sentiment in key EU markets has led to some softness in demand for bookings in recent months,” chairman Michael Cawley told shareholders at the Dublin-based company’s AGM.

The company’s share price — down by over 30% in the past 12 months — fell marginally after the update, but management has stuck with its albeit modest growth outlook for this year.

“While the important summer season is still ahead of us, we currently expect to meet the board’s expectation of modest earnings [EBITDA] growth for the full year,” Mr Cawley said.

Mr Cawley said Hostelworld is making progress with its strategic growth plans, with 2019 being a year of investment in its core brands.

Davy praised the strategy, saying: “Our take on this strategy is that it would give Hostelworld an identity which is much more closely aligned with its core market and its young, dynamic customers.

“We think that the result of the new strategy will be the one feature that was elusive throughout its post-IPO performance — growth.”

More on this topic

Charting America’s path to freedom on a road trip through the Deep SouthCharting America’s path to freedom on a road trip through the Deep South

These are the fastest-growing tourist destinations for 2020, according to AirbnbThese are the fastest-growing tourist destinations for 2020, according to Airbnb

Six of the best fitness retreats in IrelandSix of the best fitness retreats in Ireland

From mystical tombs to Samhain festivities – why Boyne Valley is the real home of HalloweenFrom mystical tombs to Samhain festivities – why Boyne Valley is the real home of Halloween

More in this Section

Amazon deal with Deliveroo investigated by UK competition watchdogAmazon deal with Deliveroo investigated by UK competition watchdog

Falling fuel costs keep UK inflation at lowest since 2016Falling fuel costs keep UK inflation at lowest since 2016

Significant risks in extremely complex UK border Brexit preparations – watchdogSignificant risks in extremely complex UK border Brexit preparations – watchdog

Global fund managers ignore stock market rally to keep cashGlobal fund managers ignore stock market rally to keep cash


Lifestyle

I am dating a lovely guy. However, he seems really awkward about being naked in front of me.Sex File: Boyfriend keeps his T-shirt on during sex

To instantly power up your look, veer towards the hard shoulder.Bold shoulder: How to instantly power up your look

Plums are a wonderful autumn fruit, useful for all sorts of recipes both sweet and savoury. In Ireland we are blessed with wonderfully sweet plums.Currabinny Cooks: Juicy plums work for both sweet and savoury dishes

The rise of home skincare devices doesn't mean that salons and clinics no longer serve a purpose.The Skin Nerd: Don’t try this at home — new treatments in the salon

More From The Irish Examiner