Hostelworld Group Releases Mid-Year Report for 2025
A summary of the major findings from Hostelworld Group's interim report for the first half of 2025, indicating positive growth in bookings and strategic updates.
Hostelworld’s Mid-Year Results
Hostelworld has officially released its interim results for the six months ending June 30, 2025. The report reveals a noteworthy improvement in net bookings and Average Booking Values (ABV) throughout the first half of the year, highlighting positive trends that began in late May and have continued into June and July.
The report indicates that rising commission rates following the launch of the Elevate platform have managed to counterbalance bed price reductions and the weaker-than-expected US dollar. While initial inflation in paid costs was noted in the first quarter, this has eased, and marketing expenses as a proportion of revenue are projected to align with annual guidance.
Moreover, app bookings rose by 11% year-on-year, underscoring the success of Hostelworld’s social network strategy.
Solid Progress
According to Hostelworld CEO Gary Morrison: “While the first half was impacted by several external factors, we saw encouraging positive trends in late May, which have continued through into June and July, including growth in booking volumes and average booking values.”
Mr. Morrison also claimed that the company’s strategic initiatives, particularly the early success of the Elevate marketplace tool, are positively impacting its trading performance. The ongoing innovation of Hostelworld’s social network has led to significant user engagement growth, with message exchanges increasing by 42% in the last six months. This heightened engagement has translated into a substantial increase in app bookings and a rise in social network membership, which now numbers approximately three million, up from 1.8 million the previous year.
He also mentioned: “We continue to evaluate acquisition opportunities… Reflecting our balanced approach to capital allocation and commitment to long-term growth, we recently announced a £5 million share buyback program on June 19, alongside the re-establishment of a progressive dividend policy. The interim dividend is expected to be distributed on September 19, 2025. Overall, I am optimistic about the foundational work we laid in the first half, as it positions us for sustained growth beyond 2026, fulfilling our vision of becoming the world’s leading social travel platform.”
