Hostelworld Regulatory News (HSW)

LEI:213800OC94PF2D675H41

Hostelworld Group plc

("Hostelworld" or the "Group" or "we")

Trading update

12th January 2022: Hostelworld, a leading global Online Travel Agent (OTA) focused on the hostel market, provides the following trading update for the period 1st January 2021 to 31st 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 €25.3 million (as at 30 June 2021: €33.7 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® in December 2021. Roamies® 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".

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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.