- Hostelworld reported Q3 net revenue rose by 7pc to €27.9m
- Net average transaction value rose by 11pc to €15.30
- The Middle East conflict negatively impacted volumes by about four percentage points
- App bookings accounted for 64pc of net bed-nights
- The company expects net revenue growth in the mid-single digits for 2027
Hostelworld has reported higher third quarter revenues and higher net average transaction values but added that the Middle East conflict had dampened long-haul volumes. In a trading statement, the Dublin-based hostel booking company stated its net revenue for the third quarter rose by 7pc to €27.9m, while its net average transaction value rose by 11pc to €15.30 on the same time in 2025. Its third quarter adjusted EBITDA came in at €8.3m, up from €7.9m on the same time last year.
The company stated its effective commission rate increased to 17.8pc in the third quarter of this year compared to 16.3pc the same time last year, supported by the continued adoption of Elevate. Hostelworld noted that about 30pc of its hostel bookings annually are on routes between Europe and Asia or Oceania. The company estimates the conflict negatively impacted volumes by about four percentage points, with Asia and Oceania destinations most affected. The softness in long-haul demand has since extended beyond those routes, with higher travel costs and stronger destination currencies weighing particularly on demand between Europe and the Americas.
App bookings, the company’s most profitable segment, accounted for 64pc of net bed-nights, up from 62pc in the third quarter of 2025. Unique chat users grew 37pc and messages sent jumped by 77pc since the first half of this year. Looking ahead, Hostelworld stated that with Asia and Oceania entering their seasonal peak in the fourth quarter, it now expects the Middle East conflict, together with the softer long-haul demand between Europe and the Americas, to continue to weigh on volumes for the remainder of the year and into 2027. For full year 2027, as the benefit of Elevate on its commission rate annualises and assuming no recovery in long-haul volumes, the board now expects net revenue growth in the mid-single digits.
Gary Morrison shared “Our revenue grew 7pc in the third quarter and is up 10pc year to date, despite the conflict in the Middle East weighing on transaction volumes. Year to date, Elevate lifted our effective commission rate to a record 17.7pc, direct marketing was held within our guided range at 49pc of generated revenue, and adjusted EBITDA was €16.5m.”
