Good Weather Causes Decrease In Profits For Hostelworld
Unusually hot weather in Europe this summer has resulted in a “softness” in bookings for Irish travel website Hostelworld.
The Irish Times reports that the firm’s latest interim results indicate that group revenue dropped 9% to €42.6 million in the first half of 2018 while after-tax profit was down 23% to €7.6 million from €10.3 million last year.
Increasingly Competitive Market
However, despite the decline in revenue and profit, Hostelworld chief executive Gary Morrison stated, “Overall, our first half results were in line with our expectations. As previously reported, the market, particularly in Europe, is increasingly competitive. In addition, the World Cup and the unusually hot weather in Europe have also led to a softness in bookings in the peak summer months of July and August.”
© 2018 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.