Dublin-based online travel agency Hostelworld said revenue has almost recovered to pre-pandemic levels as booking values rise and European destinations recover.
In a statement ahead of today’s AGM, Chairman Michael Cawley said: “The strong start of the first 12 weeks of 2022 has continued into April and early May.”
Net bookings hit 73 percent of 2019 levels last week, with revenue hitting 97 percent of pre-pandemic levels thanks to higher booking values, Mr Cawley said.
Booking demand in Europe, Hostelworld’s biggest destination in 2019, has almost fully recovered to 2019 levels, Mr Cawley said, with some markets exceeding 100 per cent.
Bookings in Oceania and Asia are recovering more slowly as Covid-19 restrictions remain in place in some areas.
Long-haul bookings are at 70 percent of 2019 levels, although travel to Europe from the US and Canada has already recovered to 2019 levels.
“Overall, we see the recovery continuing across all destinations and demand segments,” Cawley said.
“We are very confident in our business model and in our proven ability to capitalize on pent-up travel demand from customers.
“The development so far has been stronger than we initially anticipated and we are well positioned for the travel recovery.
“Despite a number of external factors, including inflationary pressures and the ongoing conflict in Ukraine, we expect this strong recovery trajectory to continue.”
Hostelworld reported a “strong start” to 2022 in its annual results in March, despite the stop-start nature of Covid restrictions, rising fuel costs and the war in Ukraine discouraging people from travelling.
Adjusted earnings before interest, taxes, depreciation and amortization reported a loss of 17.3 million euros in 2021, flat from 2020, with net bookings for the full year at 1.5 million for the second straight year, just over a fifth of 2019 levels.
On a positive note, net sales increased by 10 percent from 2020 to €16.9 million, while the average net booking value increased by 30 percent to €12.11. Cancellations fell by 43 percent.
The increased revenue is thanks to the growth of the Central American market – which is now double the size of 2019 -, rising average bed prices and people booking longer stays.
https://www.independent.ie/business/irish/hostelworld-says-revenues-almost-back-to-pre-pandemic-levels-41638155.html According to Hostelworld, revenue is almost back to pre-pandemic levels