Last checked at 
Hostelworld Group PLC - London-based hostel-focused online booking platform - Demand levels off since August-end on tightening global travel restrictions with "marked deterioration in bookings" in recent weeks. Greater than expected drop in average booking values, in part driven by bed price deflation as well as adverse foreign exchange movements. No longer expecting macro travel environment to improve in rest of 2020 with any recovery expected to be muted. Now expects full year net booking to be in the range of 20% to 22% of 2019. Its base case is for bookings at 25% of 2019, while its pessimistic case was for slightly below this base case. Net revenue is to be in the range of 16% to 18% of 2019 - the base case is 20% of 2019 while the pessimistic case is for slightly below this base case. Net cash position currently EUR22.6 million, down from EUR29.4 million June 30. Monthly operation cash burn EUR2.0 million through third quarter, expected to drop further in fourth quarter.
Hostelworld: "As noted in our interim results we have continued to deploy significant enhancements to strengthen our core platform during the third quarter and will continue this progress into the fourth quarter. We expect these enhancements will result in strengthened marketing capabilities, an improved user experience and increased inventory competitiveness when normal travel patterns resume."
Current stock price: 44.50 pence; down 18% on Thursday
Year-to-date change: down 64%
By Anna Farley; annafarley@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.