Hostelworld (LSE:HSW) confirmed it is “well positioned for profitable growth” after sales exceeded pre-pandemic levels in September.
The online travel agent said it expects to finish the year "modestly EBITDA positive" and with a stronger cash position than originally expected.
Its post-pandemic recovery continued amid a new social network strategy that encourages customers to sign up for its app.
The company said revenue in September was 104% of 2019 levels, driven by sustained growth in the value of the average booking and normalisation of cancellation rates in the year to date.
Nearly half of its customers had signed up for its app-based social platform, which was launched in April, by the end of September, with many more users booking directly through the app.
This, along with strong net booking and average booking value (ABV) growth, has translated into increased revenues, lower marketing costs and improved margins,” the company said in a statement Wednesday.
Net bookings hit 83% of levels in September 2019, with Asia and Oceania’s recovery continuing well. These continents are now at 70% of pre-pandemic levels, significantly up from just 43% in June.
In 2021, Hostelworld (LSE:HSW)’s net bookings reached roughly 1.5mln, which was 21% of 2019 levels.
"While recognising that wider macro-economic conditions are challenging and highly volatile, I remain very encouraged by the growth outlook for our business, underpinned by our highly differentiated social strategy, data-driven marketing allocation and disciplined cost control,” Gary Morrison, chief executive, commented.