Hostelworld reported a 1pc decline in net revenue to €92m, as European travellers increasingly opted for cheaper destinations in Asia and South America in 2024.
Despite the revenue dip, EBITDA increased by 19pc to €21.8m due to cost control measures and reduced marketing expenses.
Bookings rose by 6pc to 6.9m transactions, but the shift towards lower-cost options impacted overall revenue.
Hostelworld plans to announce a growth strategy on April 29 that will focus on technology investment and enhancing social features to improve customer experience.
CEO Gary Morrison shared :“Looking ahead, we are confident that our social strategy will continue to be a key differentiator in the online travel market. We will continue to invest in our technology and expand our social features to enhance the customer experience and drive future growth. “In a year marked by lower-than-expected revenue growth, driven by our customers preference for lower-cost destinations, our social strategy continued to reduce marketing expenses driving net margin growth of 7pc year-over-year. Combined with disciplined cost control, this resulted in a 19pc increase in adjusted EBITDA. Encouraging trends have continued into the first quarter of 2025 supported by bed price inflation in Asia.”
