Hostelworld Group PLC on Tuesday said its earnings are in line with consensus expectations, with growth driven by lower cost destinations in Asia.

The Dublin-based online travel agent focused on the hostel market said its net bookings increased to 6.9 million, up by 6.2% from 6.5 million in 2023. It said this was supported by record booking performances in Asia and Central America.

Net average booking value was down by 8.0% to €13.21 from €14.36, which it said was due to a shift in consumer demand toward lower cost destinations.

Net revenue was down by 1.4% to €92.0 million from €93.3 million in 2023.

Adjusted earnings before interest, tax, depreciation and amortisation was around €21.8 million, up 18% from €18.4 million year-on-year.

The closing cash position was €8.2 million with a net cash position of €2.0 million.

Chief Executive Officer Gary Morrison said: ‘We achieved a net bookings growth rate of 6% driven primarily by growth in bookings from UK and European travellers to lower cost destinations in Asia, especially in the first half of the year at 43% year-on-year and 31% on a full year basis. This growth was partially offset by weaker demand for higher cost destinations in Europe throughout the year.

‘We retired our three-year debt facility two years ahead of schedule and returned to a net cash position in the third quarter of 2024, providing a solid foundation for our next phase of growth.’

Shares in Hostelworld were up 2.2% to 138.00 pence in London on Tuesday afternoon.

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