Updates

Hostelworld

October 2019

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Hostelworld’s change of strategy, to focus on bookings with free cancellation to become more competitive, has not provided the big bang gains it might have expected, albeit in a highly competitive market place. Gross bookings fell by 4% in the six months ended June, a slowdown from 2% growth in H2 ’18. Total bookings were 3.75m, slightly below Numis’ forecast of 3.84m and 5% down year-on-year due to declines in the supporting brands. That free cancellation policy meant cancellations increased to 0.25m (0.1m in H1 ’18).Although average booking values rose 6% to Eu 12.84 supported by a rise in average commission rates from 15.3% to 16%, this was offset by fewer booked nights per booking and meant revenues fell ...

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