29th Nov 2018 11:10
LONDON (Alliance News) - Hostelworld Group PLC on Thursday said it launched a "Roadmap for Growth" strategy after its bookings are expected to be flat year-on-year in 2018.
The hostel-focused online booking platform provider said earnings before interest, taxes, depreciation, and amortization for 2018 are expected to be in line with guidance.
Like-for-like gross bookings are likely to be flat year-on-year, due to the decline in the company's supporting brands. In 2017, Hostelworld reported bookings of 7.5 million with an average value of EUR11.6.
Looking forward, the company said it expects to see "modest" Ebitda growth in 2019. In addition, it anticipates higher booking volumes in 2020 following additional strategic investments, planned in 2019.
Ahead of its capital markets day, Hostelworld said Chief Executive Gary Morrison - who replaced Feargal Mooney in June - conducted a strategic review of the business.
The new CEO has developed a "Roadmap for Growth" plan, which will enable Hostelworld to reaffirm its position as the leading hostel-focused online booking platform.
The strategy was created to enhance competitiveness and deliver a return to growth by focusing on investment in core customer acquisition and core platform enhancements.
This will be supported by investments during 2019, including an expansion of the existing Porto development centre, with the benefits expected to be seen in 2020.
"We will invest in our core products, platform and capabilities as we strive to improve the hostelling experience for travellers and enhance our technology offering for the benefit of our core hostel partners," said Morrison.
"I am hugely encouraged by the energy and opportunities in the business and believe we have an exciting future ahead," added Morrison.
Hostelworld shares were trading 0.6% higher on Thursday at 182.00 pence each.
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