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"
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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."
© 2019 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.