In 2021, Hostelworld managed to spend over two-thirds of its income on marketing as it sought to ride the early phases of the post-pandemic rebound era.
In 12 months, the Ireland-based inexpensive housing online travel company boosted its marketing expenditure by 22% year on year, accounting for 72% of sales.
Net sales climbed by 10% to €17 million in 2021, up from €15 million in pandemic-hit 2020. In 2019, the company’s revenue reached a new high of €81 million.
Hostelworld’s average booking value increased by 30% to €12.11 in 2021. The company credited this to what it claims is a “favorable geographical mix, recovery of underlying bed prices and longer length of stay of booking.”
The firm recorded a loss of €17.3 million in adjusted EBITDA in 2021, which was identical to the loss reported in 2020.
The OTA claims to have a good balance sheet and liquidity for the current fiscal year, thanks to a €30 million borrowing facility it secured.
According to CEO Gary Morrison, the company has achieved “good progress” on its goal in 2021 and is sticking to its aim to lower operational expenditures compared to those in 2020.
The company management has reiterated that they remain confident of their growing loyal customer base. They continue to make improvements to their platform and are seemingly well-positioned to capitalize on the opportunities as demand continues to return.