Hostelworld trades "below expectations" in second quarter
Irish hostel booking website Hostelworld has traded below expectations in the second quarter of its financial year, the company has said.
In an AGM statement released to shareholders this morning the company cited "geo-political" events, particularly in Europe, as the prime reason for a hit to trading.
Hostelworld said Asia Pacific continued to be its fastest growing destination region, which it said was down to increases in hostellers' travel preferences and an increased supply in the area.
The company also said bookings into the higher-priced European destinations were weaker in the three-month period.
"Average booking value has been lower this year, reflecting the evolving geographic mix, the continued higher proportional growth in mobile bookings, which tend to be of shorter duration, and exchange rate movements, particularly in relation to GBP which is a key settlement currency for the group. Our Elevate pricing programme, which attracts higher commissions, continues to grow in line with our expectations," the company said in a statement.
Hostelworld also said it expects marketing investment as a percentage of net revenue coming in at below the previous guidance of between 45pc and 50pc on a full year basis.
"Hostelworld will continue to actively respond to movements in demand, supply and pricing. The strength of our brand and technology, underpinned by a growing marketplace, gives the Board confidence in the group's future prospects," the firm said.