Hostelworld reported record revenues of €51.5m (£43.3m), on the back of resurgent demand for big trips to Asia and Australia and “bed price inflation” helped prop up its margins.
The travel platform saw revenue growth of 57 per cent year on year, on the back of 3.4 million bookings across Europe, Asia and Australian markets – a rise of 64 per cent year on year.
Hostelworld has long been a favourite of budding travellers looking to rent a bed in destinations ranging from South East Asia to Australia, but has struggled amid sluggish demand following the pandemic.
The Dublin-based company reiterated its earnings forecast for the year ahead, but noted this was dependent on macro-economic conditions and air travel restrictions remaining unchanged.
Gary Morrison, Chief Executive Officer, said: “I am very proud of our performance for the year to date. In particular, I am delighted that we have delivered record generated revenues and improving EBITDA margins driven by our differentiated Social growth strategy and a continuing focus on operational excellence and cost discipline.
“Looking further ahead, I remain very confident that our innovative, asset-light business model is well-positioned, well-financed and firmly on track to deliver against our long-term growth goals.”
Booking values were down 4 per cent, which it said was driven by a “greater proportion of Asian destination bookings.”
The turnaround follows a challenging post-pandemic period for Hostelworld, who have struggled to bring bookings back to pre-pandemic levels.
Australia and Asia have continued to be the bedrock of its recovery from the 2019 disruption, with the company reporting record revenues in May as demand finally picked up again, particularly for trips to travel hotspots in those regions.
Its performance comes amid a booming period for the travel and aviation sector, which has seen record bookings in recent months as pent-up demand sees holidaymakers shake-off cost of living concerns and opt to see the world.