Hostelworld revenue dives against restrictions but travellers begin to return
Online travel agent Hostelworld has had its revenue plummet 76 per cent in the past six months, as the group was significantly bruised by Covid-19 travel restrictions.
Net revenue fell from €12m in the first half of last year to just €2.9m this year.
Total bookings have also sunk by 73 per cent from a volume of 1.1m in the first half of 2020 to 0.3m in the six months to 30 June.
Shares sank 0.4 per cent in its afternoon trading, down to at 94.6p per share.
However, the group’s boss said it has begun to see customers flock back to locations where travel restrictions have been lifted, after being hit by slashed consumer demand.
“Despite the challenging macro environment, we are starting to see customer demand returning in geographies where travel restrictions have been eased,” CEO Gary Morrison said in a statement.
“In the US we have seen a recovery in domestic demand during Q1 and Q2, followed by a strong recovery in several Southern European markets in Q2.”
The group managed to shave down its total basic loss per share to 17.50 cents in euros, from 18.60 cents in the first half of 2020.
The travel agent added that cash dividends for this year remain suspended.
Travel boss Morrison added that “While the short-term outlook for the travel industry remains extremely challenging, I remain confident that Hostelworld will emerge from the Covid-19 crisis stronger than before.”