Hostel­world rev­enues tum­ble as virus knocks travel de­mand

The Daily Telegraph - Business - - Business -

◆ Hostel­world suf­fered a sig­nif­i­cant drop in sales dur­ing the first half of the year as the pan­demic re­stricted travel, writes

Han­nah Ut­t­ley.

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.

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