Trading Statement
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LEI:213800OC94PF2D675H41
Hostelworld Group plc ("Hostelworld" or the "Group")
Trading Update
FY 2026 guidance reiterated, strong revenue momentum sustained through H1 2026
Hostelworld provides an update on trading up to 30 June 2026 ("H1 2026").
Key highlights:
· Revenue Acceleration versus prior year: Net revenue1 of €52.2m (+12% YoY), with revenue per transaction1 of €14.9 (+11% YoY). Net transactions2 of 3.8m (+1% YoY), we estimate that in the first half of the year, volumes were negatively impacted by approximately 3%, as a result of the conflict in the Middle East, with Asia and Oceania most materially affected.
· Marketplace Monetisation: Effective commission rate increased to 17.7% in H1 2026 (H1 2025: 15.8%; H2 2025: 16.7%), demonstrating the sustained trajectory of our marketplace monetisation tool, Elevate.
· Improved Marketing Efficiency: Direct marketing costs as a percentage of revenue3 totalled 49% in H1 2026, down from 51% in H1 2025, supporting a net margin growth of 16%, to €22.9m.
· Strong EBITDA Returns: H1 2026 adjusted EBITDA of €8.2m (H1 2025: €7.4m), an 11% increase YoY, with an adjusted EBITDA margin of 16% (flat YoY).
· Robust Balance Sheet: Closing cash position of €15.0m and net cash of €2.5m.
· Inventory Expansion: since the launch of budget accommodation in December 2025, the offering continues to expand across iOS, Android and mobile web, in multiple languages, via a third-party inventory supplier.
· Social Network: OccasionGenius integration on track, with event discovery due to go-live in Q3 2026, across the Hostelworld platform.
· There is no change in our guidance for the full year.
Gary Morrison, Group Chief Executive Officer, commented:
"Hostelworld delivered strong revenue growth in the first half of 2026, with net revenue up 12% year-on-year to €52.2m. This was led, in part, by Elevate, our marketplace monetisation tool, which lifted our effective commission rate to 17.7%, up from 15.8% a year earlier and from 16.7% in the second half of 2025; Elevate continues to give our hostel partners greater flexibility to reflect the value they place on our high-intent, predominantly international customer base. Direct marketing as a percentage of revenue was 49%, compared with 51% in H1 2025. Together these drove adjusted EBITDA to €8.2m, up 11%.
Transaction volumes rose 1% year-on-year. The impact of the conflict in the Middle East, which we flagged at our full-year results, intensified through the second quarter and, across the first half, we estimate it reduced volume growth by approximately three percentage points, concentrated in longer-haul demand to Asia and Oceania. Demand in Europe and North America was more resilient.
We continued to make good progress against our strategic roadmap during the first half of 2026. Our third-party budget accommodation offering is expanding across platforms and languages, event discovery is due to go-live in Q3 across the platform, following our acquisition of OccasionGenius, and Social Passes are broadening our addressable market. We look forward to setting out this progress, and our strategic and operational priorities for the platform, in more detail at our half-year results on 29 July.
The Group maintains a robust balance sheet and net cash position. Our full-year guidance assumes that the disruption associated with the Middle East conflict eases through the second half and broader trading conditions normalise, with the contribution from our growth initiatives increasing as the year progresses. The Group continues to monitor the ongoing geopolitical environment but on the basis of the above, we reiterate our guidance for the full year."
The Group will report its half-year results for the six months ended 30 June 2026 on 29 July 2026.
1. Net revenue is gross revenue less cancellations, deferred revenue, rebates and accounting adjustments.
2. Net Transactions includes bookings paid via directly contracted inventory, 3rd party contracted inventory and Social Pass purchases.
3. Generated revenue is gross revenue less cancellations and excludes impact of deferred revenue.
For further information please contact:
Hostelworld Group plc Corporate@hostelworld.com
Gary Morrison, Chief Executive Officer
Caroline Sherry, Chief Financial Officer
David Brady, Head of Commercial Finance
Sodali & Co hostelworld@sodali.com
Eavan Gannon Tel: +44 (0) 20 7250 1446
About Hostelworld Group
Hostelworld Group plc is a ground-breaking social network-powered Online Travel Agent ("OTA") with a clear mission to help travellers find people to hang out with. Our mission is founded on the insight that most travellers go hostelling to meet other people. Our platform connects travellers through a range of social features, including city and hostel chat rooms, AI-powered recommendations, and event discovery, facilitating real-world interactions before, during and after their trips.
Hostelworld's vision is to be the world's leading social travel platform. Since launching its social network in 2022, the Group has welcomed over 4.0 million social members, with engagement growing faster than stays booked. Social members book approximately twice as frequently as non-members and are three times more likely to use the app, demonstrating the platform's utility and its contribution to customer lifetime value.
Our proprietary dataset, spanning over 4.0 million social members, 19.0 million chat messages and 19.0 million bookings since launch, strengthens our ability to understand traveller behaviour, personalise experiences, and build network effects that differentiate Hostelworld from generalist OTAs. This data asset, which is exclusively ours and compounds in value as our community grows, underpins our AI-powered matching and recommendation capabilities.
Founded in 1999 and headquartered in Ireland, Hostelworld is a recognised brand with around 275 employees, hostel and accommodation partners across more than 180 countries, and a growing suite of products including budget accommodation and Social Passes that extend the platform well beyond the traditional hostelling category.
Hostelworld has a long-standing commitment to improving the sustainability of the hostelling industry. The Group has introduced a hostel-specific Staircase to Sustainability framework, accredited by the Global Sustainable Tourism Council, which helps partners adopt more sustainable practices while giving travellers clearer information for decision-making. Customers can choose to offset trip emissions, and for the fifth consecutive year the Group has retained the 'Taking Climate Action' label from South Pole.
Disclaimer
This announcement contains forward-looking statements. These statements relate to the future prospects, developments and business strategies of Hostelworld. Forward-looking statements are identified by the use of such terms as "believe", "could", "envisage", "estimate", "potential", "intend", "may", "plan", "will" or variations or similar expressions, or the negative thereof. Any forward-looking statements contained in this announcement are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, Hostelworld's actual results may vary materially from those expected, estimated or projected. Any forward-looking statements speak only as at the date of this announcement. Except as required by law, Hostelworld undertakes no obligation to publicly release any update or revisions to any forward-looking statements contained in this announcement to reflect any change in events, conditions or circumstances on which any such statements are based after the time they are made.
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