Hostelworld Revenue Declined 5% In 2018

By Dave Simpson
Hostelworld Revenue Declined 5% In 2018

Irish travel website Hostelworld experienced a 5% drop in revenue to €82.1 million during the twelve months that ended on December 31, 2018, while its operating profit declined to €6.7 million from €11.9 million in 2017.

The company said that the drop in revenue was primarily due to €2.9 million in deferred revenue, which will be recognised this year.

Despite the decrease in revenue and operating profit, Hostelworld brand bookings rose 4% in 2018, with booking from the app increasing 22% last year.

"A Very Relevant Brand"

The Irish Times quotes Hostelworld chief executive Gary Morrison as saying, "Hostelworld is operating in a highly competitive market, which is growing. We have a very relevant brand which is trusted by a loyal and engaged customer base.

"Following the completion of our strategic review, we identified and developed a 'roadmap for growth' programme to allow the group to capitalise on these significant opportunities available and to return the business to growth."

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