Dublin-based hostel booking company Hostelworld said it had continued to capitalise on the strong recovery in demand as it issued a trading update for 2022.
Trading is also in line with expectations in early 2023, the company said.
The company said it recorded net bookings of 4.8 million for the year, with recovery in Europe helping to drive bookings, along with the Asia and Oceania regions in the second half of the year.
Hostelworld said net revenue was €70 million for the year as average booking values increased throughout the year.
Parties’ general election manifestos struggle to make the figures add up
On his return to Web Summit, the often outspoken chief executive Paddy Cosgrave is now an epitome of caution
Surviving a shake-up: is restructuring ever good for staff?
The Irish Times Business Person of the Month: Dalton Philips, Greencore
The company’s adoption of a new app-centric social strategy helped cut marketing costs as a percentage of revenue, from 70 per cent in the first six months of the year to 52 per cent in the second half and 59 per cent overall for the year.
Full-year adjust earnings before interest, tax, depreciation and amortisation was around €1 million. The group had €19 million in cash at the end of December.
“We are pleased to report that both the percentage of total bookings made by social network members, and the percentage of members who use our social features has continued to trend positively since our capital markets day update,” said Gary Morrison, group chief executive.
“2022 was the year in which Hostelworld demonstrated the resilience of its business model and the capacity to capitalise on market demand as it returned. Most significantly, through a combination of operational progress, disciplined-cost control and the launch of our innovative ‘social’ strategy, we returned the business to profitable growth.
“I am very encouraged by the strong foundations we have laid in 2022 and that Hostelworld is well positioned for the successful and profitable future that we outlined at our capital markets day last year.”
The group will report its full-year results on March 22nd.
