Online accommodation booking platform Hostelworld has revealed that its revenue decreased to €38.8 million during the first six months of 2019 from €42.6 million during the same period last year.
Hostelworld brand gross bookings dropped to €3.7 million during the first half of this year from €3.8 million during the same period last year. Its total gross bookings came to €3.8 million during the first half of 2019.
The company's adjusted earnings before interest, tax, depreciation and amortisation dropped to €8.9 million from €10.4 million during the first half of 2018.
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Meanwhile, average booking value rose 6% to €12.80 from €12.20 last year.
"Roadmap For Growth"
The Irish Times quotes Hostelworld chief executive Gary Morrison as saying, "We have made good progress on our 'Roadmap for Growth' strategy during the first half of the year, including improving the core search experience and adding unique hostel content, in addition to initial steps to improve our connectivity with our hostel partners and suppliers. We have also announced a strategic investment in Tipi, an innovative hostel-focussed technology company, which will enhance our product offering for both our customers and hostel partners.
"The market remains highly competitive and, as noted in our AGM statement, this continued into the peak summer period. Coupled with higher than anticipated inflation in performance marketing channels and the financial effect of increased investment in our 'Roadmap for Growth' during the second half of the year, means that EBITDA for the full year is likely to be below 2018."
Morrison added that the operational and strategic improvements put in place in the first half of this year should see Hostelworld return to volume growth in 2020.
© 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.