Hostelworld published its AGM statement yesterday, which showed that trading over the second quarter has been below expectations.
Hostelworld reported that ‘Whilst during this period (second quarter) Asia Pacific continued to be our fastest growing destination region, driven by hostellers' travel preferences and our increased supply in that geography, bookings into higher priced European destinations have been weaker.’
The company comments that ‘Average booking value has been lower this year’ and that ‘The trends in bookings and Average Booking Value that we have seen in the travel market, particularly into higher priced European destinations, while partially offset by improved marketing efficiency, means that the year's outturn will be dependent on a recovery in key European destinations over the important summer travel season, and we remain mindful of the exchange rate environment.’
On the back of yesterday’s statements Davy Stockbrokers forecast net revenue of €79.8m in 2016 which is 10% lower than their previous estimate, alongside a 4.5% decrease in average booking value.
Source: www.businessworld.ie
