Publication of Annual Report and Notice of AGM

Hostelworld Group PLC

31 March 2026

 

LEI: 213800OC94PF2D675H41

31 March 2026

Hostelworld Group plc

("Hostelworld" or the "Company")

Publication of Annual Report for 2025 and Notice of 2026 Annual General Meeting

Annual Report and Accounts

Hostelworld, the world's leading hostel-focused online booking platform, is pleased to announce that its Annual Report 2025 has been posted or is being made available to shareholders today.

Annual General Meeting

The Company confirms that its Annual General Meeting will be held at 12 noon on Wednesday, 6 May 2026, at the offices of the Company, 8 Harcourt Street, Dublin 2, Ireland, D02 AF58.  A Circular, containing the Chair's Letter and Notice of 2026 Annual General Meeting, and a Form of Proxy have also been posted or are being made available to shareholders today.

Documents available for inspection

The following documents:

·       Annual Report 2025;

·       Circular containing the Chair's Letter and Notice of 2026 Annual General Meeting;

·       Form of Proxy; and

·       A copy of the draft rules of the Company's Annual Bonus Plan   

have been submitted to the Financial Conduct Authority via the National Storage Mechanism, and the Irish Stock Exchange (trading as Euronext Dublin), and will shortly be available for inspection at the following locations:

National Storage Mechanism: https://data.fca.org.uk/#/nsm/nationalstoragemechanism  

and:

Euronext Dublin:

Companies Announcements Office,

Euronext Dublin,

28 Anglesea Street,

Dublin 2

and https://direct.euronext.com/#/oamfiling

The Annual Report 2025 has also been filed with the Central Bank of Ireland.

The Annual Report 2025 (ESEF compliant format), the Circular containing the Chair's Letter and Notice of the 2026 Annual General Meeting and the Form of Proxy are available on the Company's website at www.hostelworldgroup.com.

Regulated Information

In accordance with DTR 6.3.5(1A), the unedited full text of the regulated information required to be made public under DTR 4.1 is contained within the 2025 Annual Report, which has been uploaded to the National Storage Mechanism and is available on the Company's website www.hostelworldgroup.com. 

The information set out in the Appendix, which is extracted from the Annual Report 2025, is included for the purposes of complying with Regulation 33(5)(b)(ii) of the Irish Transparency Regulations 2007 (as amended) and its requirements on how to make public annual financial reports.  The information in the Appendix should be read in conjunction with the Company's preliminary results for the year ended 31 December 2025, released on 26 March 2026, which can be viewed at www.hostelworldgroup.com. Together, these constitute the material required by Regulation 33(5)(b)(ii) to be communicated in unedited full text through a Regulatory Information Service.

Contacts:

Hostelworld Group plc

John Duggan, General Counsel & Company Secretary

Tel:  [phone]

Appendix:

Directors' Responsibilities Statement

The Directors are responsible for preparing the Annual Report and the Group and Company Financial Statements, in accordance with applicable law and regulations.

Company law requires the Directors to prepare Financial Statements for each financial year. The Directors are required to prepare the Group Financial Statements in accordance with UK-adopted international accounting standards and applicable law. The Directors have also elected to prepare the Group Financial Statements in accordance with International Financial Reporting Standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union and to prepare the parent Company Financial Statements in accordance with FRS 101 Reduced Disclosure Framework and applicable law. Under company law the Directors must not approve the Financial Statements unless they are satisfied that they give a true and fair view of the assets, liabilities and financial position of the Group and Company and of the profit or loss of the Group for that period.

In preparing the Group and Parent Company Financial Statements, the Directors are required to:

·    Select suitable accounting policies and then apply them consistently.

·    Make judgments and accounting estimates that are reasonable and prudent.

·    Present information, including accounting policies, in a manner that provides relevant, reliable and comparable information.

·    Provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the Company and Group's financial position and financial performance.

·    Prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the Company and Group will continue in business.

·    For the Company Financial Statements state whether Financial Reporting Standard 101 Reduced Disclosures Framework has been followed, subject to any material departures disclosed and explained in the Financial Statements.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the Financial Statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of Financial Statements may differ from legislation in other jurisdictions.

Responsibility Statement

We confirm that to the best of our knowledge:

·    The Group Financial Statements, prepared in accordance with IFRS as adopted by the European Union and the Company Financial Statements prepared in accordance with FRS 101 Reduced Disclosure Framework, give a true and fair view of the assets, liabilities, and financial position of the Group and Company as at 31 December 2025 and of the profit or loss of the Group for the year then ended. The Strategic Report includes a fair review of the development and performance of the business and the position of the Company, and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.

·    The Annual Report and Financial Statements, taken as a whole, provides the information necessary to assess the Group's performance, business model and strategy and is fair, balanced and understandable. It also provides the information necessary for shareholders to assess the Group's position and performance, business model and strategy.

This responsibility statement was approved by the Board of Directors on 25 March 2026 and was signed on its behalf by:

John Duggan

Company Secretary

25 March 2026

Principal Risks and Uncertainties:

Risk Identification

Our business model and results are subject to risks and uncertainties which could adversely affect our business, financial stability, and cash flows. Risk is an inherent factor. While demand for hostelling has remained strong, changing travel patterns (including increased travel to lower cost regions), inflation, the ongoing cost of living crisis and other economic pressures, and geopolitical tensions, including tensions in the Middle East, remain as risk factors which can impact demand. The Hostelworld Group strategy can contribute additional risk such as the potential impacts of social features, while external factors such as the continuing growth of artificial intelligence also contribute to our risk environment.

The Group's risk register process is based upon a standardised approach applied to identify, assess and mitigate against risks in the business. Within these processes, there is input across all levels of the business to ensure that risk identification processes capture all evolving risk areas and mitigating strategies.

From the bottom-up, risk is identified and mitigated at a business unit level by the executive leadership team, senior management and their respective teams, and subject matter experts including the Data Protection Officer and Head of IT Security.

The Board holds overall responsibility for risk and sets the Group risk appetite including determining the extent of risk that is tolerable in pursuit of its strategic objectives. The Board, together with the Audit Committee conduct a detailed formal half-year and full-year review of the risk register, including emerging risks and the mitigating actions that are in place. The Board is satisfied that its risk identification and management systems are effective, its mitigations and internal control processes are effective, and that the risks described within this report accurately reflect the Group's principal risks at present.

The Audit Committee supports the Board in carrying out its risk oversight and management responsibilities. The Audit Committee has delegated responsibility for risk identification and assessment, in addition to reviewing the effectiveness of the Group's risk management and internal control systems and making recommendations to the Board thereon.

The Executive Leadership Team are responsible for ensuring appropriate risk management is incorporated into the business. They support the Board and Audit Committee through oversight of risk management processes, monitoring the risk environment and effectiveness of controls in place. The leadership team complete a detailed review of the Group Risk Register prior to reporting to the Audit Committee and the Board.

Overview Principal Risk Register

The most material risks and uncertainties impacting the business are listed below, together with comments on how they are managed to minimise their potential impact. The table is not prioritised in a particular order, nor is it an exhaustive list of all risks that may impact the Group. Individually or collectively, these risks could affect our ability to operate as planned and could have a significant impact on revenue and shareholder returns. Additional risks and uncertainties, including those that have not been identified to date or are currently deemed immaterial may also, individually or together, have a negative impact on our revenue, returns, or financial condition. Each risk identified is subject to an assessment incorporating the likelihood of occurrence and potential impact on the Group. This assessment considers that risks do not exist in isolation, and the relationships between risks can increase the likelihood of occurrence of a risk and influences the level of control and mitigations needed to be put in place.

The Group's Risk Register also includes any emerging risks. Emerging risks are identified from areas of uncertainty, which may not have a significant impact on the business currently but may have the potential to adversely affect the Group in the future. No emerging risks warranting disclosure have been identified. However, the risk of artificial intelligence, identified as an emerging risk in 2024, remains and is considered to be at an increased level of risk. This reflects the wide-ranging impacts that it has across cyber and data security, competition, third party management, and platform evolution and innovation, amongst others. The pace of change in respect to artificial intelligence requires careful observation, consideration, and management, with a particular focus recently on the impact of generative AI tools such as search assistants, OS-level copilots and super-apps which can impact how customers plan their trips.

The direction of the risk of the impact of uncontrollable events on the Group has also increased reflecting heightened geopolitical tensions, including recent Middle East developments impacting travel routes and demand, alongside broader macroeconomic and climate-related volatility affecting global travel patterns. Macroeconomic conditions are also considered an increased risk this year reflecting the rapidly evolving and difficult to predict macroeconomic environment. External demand factors and travel patterns can have substantial impacts on the Group and require diligent efforts to manage.

Consideration was given to whether our recent debt facility obtained to finance the acquisition of OccasionGenius Inc. warranted the inclusion of financial risk within our primary risks. However, upon consideration of the quantum of borrowings obtained, the Group's repayment ability, and the non-complex nature of the arrangement, this was not deemed to be warranted.

Following an assessment of the residual risk attached after internal management and mitigation, each principal risk outlined below has been assigned a direction of change based on 2025 factors and forward expectations.

Risk Trend	Strategic and External Risk (Any external risks outside of the Group's control impacting our business.)	Technological, Cyber and Data Risk (The systems we use to power our business, and the data we hold.)	Financial Risk (Integrity of reporting and viability of the Group.)	Operational and Regulatory Risk (The processes and people we use to power the Hostelworld model.)
Increased level of risk	Macroeconomic Conditions Impact of Uncontrollable Events	Artificial Intelligence
Unchanged level of risk	Competition Execution of Strategy	Data Security Cyber Security Platform Evolution and Innovation Marketing Optimisation	Taxation	People Brand and Reputation Third-party Reliance Climate Change and Sustainability Regulation Business Continuity

Macroeconomic Conditions	Direction of Change: Increasing
Description and Impact	The Group's financial performance is closely linked to global travel demand, which is influenced by macroeconomic factors including economic activity, employment, inflation, interest rates, currency movements, and consumer access to credit. Travel services are enabled by the freedom of movement of people nationally and internationally without prohibitive restrictions. Moreover, it is supported by affordable air, ferry and train fares at significant scale, and similarly good access to affordable accommodation. Shifts in travel preferences, such as toward lower-cost destinations, may reduce average booking values and constrain revenue growth. Increasing macroeconomic volatility heightens uncertainty and the risk of adverse impacts on financial performance.
Management and Mitigation	The Board and management monitor key economic, market, and trading indicators to assess risks and implement mitigating actions where needed. The Group's globally diversified customer base and destination footprint help offset regional downturns, with 50-60% of bookings in Europe and the remainder spread worldwide. Consumer prioritisation of travel and leisure spending may partially mitigate macroeconomic headwinds, while operational flexibility allows the Group to adjust costs and conserve cash if global demand declines materially.
Direction of Change	The difficulty in predicting an increasingly volatile macroeconomic environment increases the risk of impacts to the Group.

Data Security	Direction of Change: Steady
Description and Impact	As a technology-driven e-commerce business, the Group relies on advanced software and infrastructure, exposing it to data security risks. Protecting customer information, proprietary data, and platform integrity is critical. The Group's hybrid workforce, global contractors, and evolving social strategy increase complexity, while rapid technological change and gaps in regulation can complicate compliance with laws such as GDPR. The Group's hybrid workforce, global contractors, and evolving social strategy increase complexity, while rapid technological change and gaps in regulation can complicate compliance with laws such as GDPR.
Management and Mitigation	Data protection is a core priority, supported by a comprehensive privacy, security, and compliance programme. Supplier onboarding requires rigorous review of data protection and IT security controls. The Group adheres to leading industry standards, maintains PCI compliance, and implements a GDPR-aligned data protection framework overseen by a Data Protection Officer and employee champions. Hybrid work risks are managed through access controls, single sign-on, and multi-factor authentication. Expert cloud and security providers support operations, and new social and product developments are implemented using privacy-by-design principles and a risk-based approach. Regular employee training and proactive threat monitoring ensure compliance while supporting business growth and innovation.

Cyber Security	Direction of Change: Steady
Description and Impact	The Group faces ongoing cyber threats that could compromise system integrity, data security, and customer trust. Increasingly sophisticated attacks, coupled with cloud migration and third-party vendor reliance, elevate the risk of data breaches, operational disruption, or reputational damage. Insurer coverage may be constrained in the event of incidents.
Management and Mitigation	The Group invests significant resources to strengthen cyber resilience, with a comprehensive programme addressing internal and third-party risks. Procurement processes ensure new vendors meet security standards, while monitoring tools provide real-time threat detection and response. Policies, procedures, and training are continually updated to reflect evolving threats and regulatory requirements. Mandatory employee cybersecurity awareness and cloud-specific skills development courses underpin operational security. Multi-factor authentication and access controls enhance system protection and attack resilience.

Artificial Intelligence ('AI')	Direction of Change: Increasing
Description and Impact	AI technology is evolving rapidly, presenting both opportunities and risks across the Group's operations. Generative AI tools such as search assistants, OS-level copilots and super-apps can impact how customers plan their trips. "Zero-click" journeys may bypass OTAs entirely, impacting the Groups revenue and profitability. Cybersecurity threats include AI-enabled attacks, such as social engineering or algorithmic exploitation. The adoption of AI-enabled tools by third-party vendors introduces risks of compromised integrity, security vulnerabilities, or non-compliance with data privacy regulations. Compliance risks include failure to meet obligations under the AI Act or GDPR, exposing the Group to regulatory penalties or reputational harm. AI adoption may also create operational risks from biases, misuse, or over-reliance on AI-driven decisions, potentially affecting product safety, customer trust, or competitive positioning. Proprietary data used in AI models introduces confidentiality, integrity, and availability risks. Regulatory obligations, including under the EU AI Act and GDPR, create exposure to potential penalties or reputational harm.
Management and Mitigation	The Group have an AI governance framework in place. While the Group is monitoring developments of generative AI closely, Hostelworld's strategy is focused on social human connection and experiences which cannot be replicated easily. Hostelworld prioritises cyber and data security in mitigating AI risks. AI tools are confined to secure environments to ensure its integrity, as well as encryption and monitoring controls. Tailored employee training on ethical and regulatory considerations of AI has been rolled out, and the procurement process ensures supplier features meet prerequisite confidentiality, integrity, and availability standards. Management and the Board closely monitor developments in AI product offerings. Potential AI impacts are considered in deriving and implementing the Group's strategy. AI features are deployed using a phased rollout approach, controlled "safe to fail" experiments, and manual oversight to ensure responsible use. Human intervention remains central.
Direction of Change	The pace of change in AI is fast, and it has a wide range of areas in which it can impact the Group. Careful management focus is required to ensure appropriate monitoring and mitigation is in place.

Competition	Direction of Change: Steady
Description and Impact	The Group operates in a highly competitive global travel market, where competitors, including large incumbents and disruptive new entrants, can influence pricing, inventory access, and customer acquisition. Competitors willing to operate at a loss or invest heavily in technology may challenge the Group's market share and growth. Competition may also impact supplier relationships, including exclusive supply agreements, and evolving regulations such as the Digital Markets Act may alter market dynamics. Changes in technology, including AI, and shifts in customer preferences - such as increased demand for private rooms or experiential travel - can influence acquisition costs, demand, and the relevance of the Group's offering.
Management and Mitigation	The Group continuously monitors market share, hostel coverage, and competitor activity to guide acquisition, retention, and pricing strategies. The Group's strategy focuses on leveraging its unique market position of having a social offering through targeted customer acquisition and optimising the profitability of existing customer cohorts, emphasising customer lifetime value/customer acquisition cost. There is a continued focus on improving platform flexibility, enhancing customer experience, and global expansion. Delivering advanced technology solutions can help the Group to diversify from exclusive OTA reliance to a broader experiential travel offering. Strategic partnerships and commercial agreements secure inventory and competitive rates, while leveraging the Group's proprietary tools-such as the "Solo System" and social cues-to maintain supplier loyalty. The Group explores AI and new distribution channels for customer acquisition and remains adaptable to market changes.

Execution of Strategy	Direction of Change: Steady
Description and Impact	The Group continues to pursue an ambitious growth strategy to deliver attractive sustainable returns for shareholders. Delivering this strategy requires strong leadership, employee engagement, investment and governance. The Group operates in an intensely competitive global environment and there is a risk of loss in market share to competitors or markets generally not performing in line with expected growth. In 2025, the Group acquired OccasionGenius Inc. and is integrating its event discovery platform into the existing social and accommodation offering. This creates opportunities to strengthen engagement and diversify revenue streams. Effective integration is critical to realise the intended strategic and financial benefits.
Management and Mitigation	The Executive Leadership Team maintains clear accountability for delivering strategic objectives, with regular monitoring of operational and financial performance against targets. Competitor activity and market trends are closely tracked, allowing timely responses to changes in the external environment. Investment in the Group's social platform and ongoing partnership development with hostels supports differentiation and market positioning. Dedicated resources, including management oversight and cross-functional teams, are focused on the seamless integration of OccasionGenius Inc. and the execution of the broader strategic plan, ensuring alignment with the growth ambitions presented at the last Capital Markets Day.

Marketing Optimisation	Direction of Change: Steady
Description and Impact	A significant proportion of the Group's website traffic originates from search engines, through both paid and organic channels. Visibility and customer acquisition are therefore highly dependent on search engine optimisation and search engine marketing. Search engine algorithms, like Google's, constantly change, affecting our placement and costs. AI-powered platforms are further influencing search results, making algorithm management and optimisation crucial for our marketing strategy and efficiency. In addition, the Group is dependent on a small number of traffic sources, subject to margin pressure from escalating bidding competition with other, larger OTAs, and there is a new risk of zero-click AI search reducing traffic volumes.
Management and Mitigation	The Group invests in skilled personnel for paid and non-paid searches. In-house expertise and technology adapt to algorithm changes. The search marketing team collaborates with Google, gaining search traffic efficiency insights. Participation in alpha and beta tests give the Group first mover advantage with new functionality that can help drive efficiency. Skill enhancement through third-party vendors complements in-house capabilities for search engine optimisation.

Platform Evolution and Innovation	Direction of Change: Steady
Description and Impact	Rapid technological change is transforming how customers research, book, and experience travel, driven by innovations such as AI, mobile applications, meta-search platforms, social communities, and digital advertising. Failure to keep pace with these developments risks the Group becoming less relevant to modern travellers. Technology obsolescence and the introduction of new products or features also increase exposure to operational and cybersecurity risks if controls do not evolve alongside the platform. Continuous innovation is therefore critical to maintain competitiveness, user engagement, and secure service delivery.
Management and Mitigation	The Group monitors emerging technology trends and customer behaviours to guide platform development and product strategy. Significant investment is directed to research, product innovation, and collaboration with peer companies and partners across the travel sector. Partnerships are leveraged to ensure delivery of advanced, best-in-class technology solutions for customers and hostel partners. Following completion of the core platform modernisation, the Group now focuses on continuous enhancement and optimisation to maintain functionality, security, and operational efficiency.

People	Direction of Change: Steady
Description and Impact	The Group relies on attracting and retaining skilled, committed, and motivated employees for strategic success. The Group is dependent on key roles throughout all functions of the business to drive innovation, ensure efficiency and deliver on the Group's strategy. These tend to be specialist roles where competition for talent is high. Failure to recruit or retain appropriately skilled employees, or to maintain competitive reward and development offerings, may lead to increased attrition, loss of institutional knowledge, and reduced capacity to deliver the Group's objectives.
Management and Mitigation	The Group undertakes regular external salary benchmarking to ensure its reward offering remains competitive and aligned with market standards. People policies and practices are reviewed and updated on an ongoing basis to reflect employee needs and evolving ways of working. The Group operates from three global offices and maintains flexibility in workforce location to access broader talent pools. Workforce engagement is supported through the oversight of a designated Non-Executive Director, in line with the 2024 UK Corporate Governance Code.

Brand and Reputation	Direction of Change: Steady
Description and Impact	The strength of the Group's brand is critical to customer trust, acquisition, and long-term growth. As a result of our social network strategy, we are subject to eexplicit risk of harmful user-generated content, community moderation failure and a reputational contagion from viral incidents. Reputational risk may arise from cybersecurity incidents, poor customer experiences involving the Group's platform or hostel partners, or ineffective responses to sensitive issues such as geopolitical events or improper user behaviour. The Group could be subject to payment fraud, fake property listings, and review manipulation. False or unsubstantiated claims relating to inclusion, engagement and diversity or sustainability may undermine credibility and stakeholder confidence. How Hostelworld is perceived as responding to geopolitical developments and improper user actions could also affect brand integrity and the business. The increasing use of artificial intelligence presents opportunities to enhance customer experience and operational efficiency but also introduces emerging risks relating to transparency, bias, content moderation, and misuse, which may adversely affect brand perception if not appropriately governed.
Management and Mitigation	The Group focuses paid marketing activity on app promotion and product innovation, supported by brand marketing investment in owned channels and social media engagement through content creators. Customer relationship management initiatives integrate social features across the customer journey, while proactive communication addresses emotive issues like the Ukraine war. Third-party services are engaged to monitor chat channels and there is a strict code of conduct in place to ensure appropriate content. Reputational incidents are managed through established crisis communications and incident response plans, developed and periodically reviewed with external public relations advisors. Cybersecurity controls and crisis response arrangements are in place to mitigate the impact of potential cyber incidents. Customer experience is supported through dedicated customer service functions and crisis management policies. In-app social features are governed by clear terms of use, codes of conduct, and automated moderation processes to address inappropriate behaviour. An ESG Steerco oversees sustainability, mitigating risks through third parties. Our IT and procurement policies as well as our legal frameworks are reviewed and updated regularly.

Third-party Reliance	Direction of Change: Steady
Description and Impact	The Group relies on hostel accommodation providers to supply inventory and support growth. Any constraints upon the supply of hostel inventory may stem growth ambitions. Financial pressure on partners may lead to business closures or reclassification of accommodation, reducing supply. The Group's revenue also depends on the availability and performance of third-party systems, channels, and integrations. System outages, delayed updates, or reduced functionality at third-party providers may disrupt bookings, payments, or customer service, resulting in lost revenue and reputational damage. In addition, reliance on payment processors exposes the Group to risks relating to pricing changes, service disruption, or unfavourable contractual terms, which could impact transaction volumes and margins.
Management and Mitigation	Nurturing hostel and vendor relationships is a priority. This close cooperation enables us to monitor market development enabling early identification of market or partner-specific risks. There is a dedicated global markets team who are a support function for our hostels. We rely on close collaboration through frequent contact, including in person market visits, and a dedicated sales function who target new signups. Third-party providers are subject to rigorous assessment, due diligence, and ongoing monitoring, with all contracts processed through the Group's purchasing and contract review framework. Service providers are contractually required to meet defined service levels and incident resolution timelines. System monitoring and alerting are in place to detect outages promptly, with contingency measures to replicate critical functionality where feasible. Annual business reviews, contractual safeguards, and financial health monitoring support preparedness for partner or service provider failure and help to mitigate operational and revenue risk.

Climate Change and Sustainability	Direction of Change: Steady
Description and Impact	Stakeholders increasingly expect the Group to demonstrate accountability and transparency in relation to climate change and sustainability. Failure to meet these expectations through ineffective strategy, target setting, delivery, or disclosure may result in reputational damage and reduced stakeholder confidence. Achieving climate-related commitments may also give rise to additional costs, including investment in sustainability initiatives that could impact pricing and margins. The Group is subject to expanding sustainability-related reporting and disclosure requirements, creating a risk of perceived non-compliance or insufficient transparency. In addition, evolving customer attitudes towards travel, regulatory measures such as carbon pricing, and physical climate risks including extreme weather events may influence travel behaviour, disrupt operations, and adversely affect revenue and profitability.
Management and Mitigation	The Group's climate and sustainability strategy is overseen by ESG Steering Committees (ESG Steerco) which govern climate-related actions and compliance. ESG Steerco members receive specialist training from external providers and engage third-party experts where required to support regulatory compliance, target setting, and reporting. Stakeholder engagement informs the Group's sustainability priorities, and progress against targets is reviewed and published annually. The Group supports accommodation partners and customers in their sustainability efforts through dedicated internal resources and initiatives. While climate-related factors may affect travel patterns, the Group's globally diversified customer base and destination portfolio help to mitigate the impact of regional or destination-specific disruption.

Impact of Uncontrollable Events	Direction of Change: Increasing
Description and Impact	The Group is exposed to external events that are unpredictable and outside its control, which may adversely affect demand, operations, and financial performance. Economic and political instability, changes in travel, trade, or visa regulations, and broader macroeconomic conditions may reduce demand for travel and negatively impact profitability. Security incidents such as terrorist attacks, geopolitical conflicts and regional instability - including the ongoing conflicts in Ukraine and Gaza and heightened tensions in the Middle East, including developments involving Iran - may reduce traveller confidence, disrupt air travel routes, increase transport costs or restrict access to certain destinations, leading to declines in booking volumes and revenue. Disruption within the Group's hostel supply chain ecosystem, including financial distress, operational restructuring, or reduced capacity of key partners may constrain growth or service delivery.
Management and Mitigation	Our target 18-34-year-old traveller demographic tends to be flexible in terms of destination and is generally less risk-averse. Travel among this cohort is often viewed as a "rite of passage", meaning trips are more likely to be adjusted or redirected to alternative destinations rather than cancelled in response to geopolitical or external disruptions. We maintain a close working relationship with our hostel partners to monitor market conditions and respond swiftly to emerging risks. Supply chain risks are managed through risk assessment and due diligence processes conducted by the procurement function in conjunction with relevant business owners.
Direction of change	The direction of risk is considered increasing, reflecting the growing frequency of geopolitical tensions, regional conflicts, climate-related events and broader macroeconomic volatility, all of which may contribute to greater uncertainty in global travel demand.

Regulation	Direction of Change: Steady
Description and Impact	The Group operates across multiple jurisdictions and is subject to an increasingly complex and evolving regulatory landscape. Regulatory and legal risks arise in areas including competition, licensing of accommodation and experiences, consumer protection, online trading, payments, tax, intellectual property, data protection, information security, and commercial disputes. The Group is required to comply with a range of sector-specific and digital regulations, including payment card association rules, the EU Package Travel Directive, cookie and consent requirements under GDPR and the ePrivacy framework, and the Digital Services Act, which imposes content moderation and transparency obligations. Failure to comply may result in fines, operational restrictions, reputational damage, or legal action. Heightened scrutiny of international data transfer mechanisms, including standard contractual clauses following the invalidation of the EU-US Privacy Shield, together with evolving global privacy regimes such as the California Privacy Rights Act, creates ongoing compliance and operational uncertainty. New and evolving sign-up, reporting, and platform regulations, including the EU DAC7 directive, may increase administrative complexity, slow onboarding, affect property categorisation, or result in the removal of listings due to changes in local laws. Ongoing regulatory developments may increase compliance costs and constrain business flexibility. Sustainability-related legislation increasingly requires transparent disclosure and monitoring of compliance with climate and environmental obligations.
Management and Mitigation	The Group's legal team monitors evolving regulatory requirements, supported by external advisers where needed, and oversees compliance with consumer protection, listing rules, governance codes, and market abuse requirements. Data protection, online safety, and digital regulation compliance are reviewed on an ongoing basis, with processes updated to reflect developments and evolving privacy legislation. The Group maintains appropriate insurance coverage and continues to enhance operational processes to support compliance and customer experience. A formal TCFD governance framework, supported by third-party monitoring, underpins climate-related disclosure requirements.

Business Continuity	Direction of Change: Steady
Description and Impact	The Group is dependent on the availability and performance of its IT systems and third-party services to support bookings, payments, and operational activities. System failures, including outages at key suppliers, could disrupt services, impact revenue, and damage customer trust. Weaknesses in business continuity planning (BCP), reliance on a single cloud provider region, or failure to modernise technology may increase the risk of prolonged disruption, security vulnerabilities, and reduced system reliability.
Management and Mitigation	The Group maintains a BCP framework focused on critical e-commerce operations, supported by disaster recovery plans developed with external advisors. Ongoing technology modernisation and cloud initiatives enhance resilience and recovery capability. Supplier contracts include business continuity and force majeure provisions. BCP arrangements and backup systems are tested and reviewed periodically to ensure continued effectiveness.

Taxation	Direction of Change: Steady
Description and Impact	Indirect taxation remains a complex and evolving area due to the variety of regimes and compliance requirements across the jurisdictions in which the Group operates. Governments and regulators continue to introduce measures targeting multinational and digital businesses, including digital services taxes, enhanced VAT rules, and platform reporting obligations requiring digital platform operators to collect and report information on third-party sellers. Non-compliance may result in penalties, increased administrative burden, and potential disruption to revenue streams. There is a risk that the Group does not stay ahead of compliance in all jurisdictions in which it operates. In addition, changes in tax legislation and regulatory interpretations such as the European Commission's proposals on VAT in the Digital Age and OECD recommendations may give rise to additional tax liabilities and increased compliance costs. Given the Group's global workforce footprint, tax authorities may assert that a permanent establishment exists in certain jurisdictions based on the nature or location of activities performed. Furthermore, where key functions, assets, or risks are undertaken or managed outside Ireland, there is a risk of tax leakage or challenge to the Group's current tax positions. If tax authorities adopt a different interpretation of the Group's taxable presence or profit attribution, the Group may be required to account for taxes not currently recognised, potentially increasing the effective tax rate, cash tax outflows, and ongoing compliance costs.
Management and Mitigation	The Group manages tax risk through a dedicated and experienced in-house tax function, supported by reputable external tax advisors. Tax risks and developments are monitored on an ongoing basis, with regular impact assessments, updates provided to senior management and the Board, and biannual reviews with external advisors to address legislative and regulatory changes. The Group actively monitors its global operating and workforce footprint, supported by the implementation of appropriate tax structures and the enforcement of a controlled work-from-abroad policy. Locations of key functions are formally approved, and transfer pricing policies are designed to reflect the Group's operating model and value creation, supporting compliance and mitigating exposure to tax risk across jurisdictions.

 

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