Hostelworld revenues tumble as virus knocks travel demand
◆ Hostelworld suffered a significant drop in sales during the first half of the year as the pandemic restricted travel, writes
The online booking platform said sales tumbled 69pc to €12m (£11m) in the six months to June 30 compared with a year earlier, while net bookings slumped 67pc as a result of higher cancellations.
Hostelworld recorded a loss before tax of €18.8m compared with a profit of €394,000 a year ago. The firm provides booking access to more than 17,700 hostels in 179 countries.
Gary Morrison, chief executive, warned that the outlook for the travel sector remained “extremely challenging” but it had seen an uptick in bookings to Europe recently.
Hostelworld said shareholder dividends remained suspended, but has proposed a “bonus issue” that will see investors receive new ordinary shares worth one euro cent per share.