Hostelworld Group PLC Trading Update (1270Y)
12 Januar 2022 - 8:00AM
UK Regulatory
TIDMHSW
RNS Number : 1270Y
Hostelworld Group PLC
12 January 2022
LEI:213800OC94PF2D675H41
Hostelworld Group plc
("Hostelworld" or the "Group" or "we")
Trading update
12(th) January 2022: Hostelworld, a leading global Online Travel
Agent (OTA) focused on the hostel market, provides the following
trading update for the period 1(st) January 2021 to 31(st) December
2021.
While 2021 has continued to be a challenging year for
Hostelworld and the global travel industry, we are pleased to
report that the Group recorded a consistent recovery in bookings
and revenue versus 2019 levels throughout the year, save for the
latter part of the year which was impacted by the emergence of the
Omicron variant.
As reported in our Interims results, 2021 started with a strong
recovery in Central America and domestic demand in the US and
Australia. In May-June, several southern European destinations
opened their borders with strong growth over the summer months.
During H2 Central America bookings surpassed 2019 levels, with
southern European destination's bookings growing to 60-80% of 2019
levels until the latter part of the year where the Omicron variant
saw a resumption of travel restrictions in many destinations.
Overall, FY 2021 net bookings totalled 1.5 million, i.e. 21% of FY
2019 levels.
Trading economics also continued to recover throughout the year
with average net booking values exceeding FY 2019 levels by October
2021 (cumulative) due to favourable geographic mix and longer
length of stay bookings; partially offset by underlying bed price
deflation, higher cancellation rates and a reduction in blended
commission rates (driven by the removal of Elevate in 2020).
As at 31 December 2021, the Group's cash position stood at
EUR25.3 million (as at 30 June 2021: EUR33.7 million), with monthly
operating cash outflow continuing to reduce throughout the year
versus 2020 levels.
Finally, we were pleased to announce the launch of Roamies(R) in
December 2021. Roamies(R) is a new hostel focused adventure tour
product developed with GAdventures, the world's largest small group
adventure tour provider. This new collaboration launched with a
collection of 38 tours across 50 hostels in 15 countries, with
departure dates starting in May 2022.
Gary Morrison, Chief Executive of Hostelworld , commented:
"While the COVID-19 pandemic continues to weigh heavily on the
travel industry , I was pleased to see our consistent bookings
recovery versus 2019 levels throughout the year, save for the last
6 weeks of the year which have been impacted by the Omicron
variant. I am also pleased to report that we made solid progress on
all elements of our strategy during the year, while reducing our
operating expenses still further versus 2020 levels
Finally, our liquidity position remains strong, driven by our
relentless focus on cost control coupled with the successful term
loan facility transaction in February 2021".
For further information please contact:
Hostelworld Group plc corporate@hostelworld.com
Gary Morrison Chief Executive
Officer
Caroline Sherry Chief Financial
Officer
Rudolf O'Kane Head of Commercial
Finance
Powerscourt Tel: +44 (0) 20 7250 1446
Eavan Gannon / Nick Dibden hostelworld@powerscourt-group.com
About Hostelworld Group
Hostelworld Group, the global hostel-focused online booking
platform, inspires passionate travellers to Meet The World, and
come back with life-changing stories to tell. Our customers are not
your average tourists; they crave cultural connection and unique
experiences that we make possible by providing an unbeatable
selection of hostels in unmissable locations - all in the palm of
their hand.
It is the social nature and community feel of hostels and their
environment that enable travellers to embrace journeys of
discovery, adventure and meaning. We have more than 13.7 million
reviews across over 16,500 hostels in more than 180 countries,
making our brand the leading online hub for social travel. Our
website operates in 19 different languages and our mobile app in 13
languages.
Disclaimer
This announcement may contain forward-looking statements with
regard to the financial position and results of Hostelworld's
activities. Any forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially.
Many of these risks and uncertainties relate to factors that are
beyond Hostelworld's ability to control or estimate precisely. The
risks and other factors which may affect financial performance are
detailed in Hostelworld's publicly filed annual reports. Any
forward-looking statements in this announcement are current only as
of the date on which such statements are made. Hostelworld
undertakes no obligation to update any forward-looking statements,
save in respect of any requirement under applicable law or
regulation.
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