Hostelworld officially released its interim results for the six months that ended on 30th June today, 30th July.
The report shows that net bookings and ABV improved throughout the first six months of 2025, returning to growth in late May and continuing positive momentum into June and July
Increasing commission rates post launch of Elevate were also noted, offsetting bed price deflation and weaker than expected US dollar.
Meanwhile, paid cost inflation was observed in Q1, but has since moderated, while marketing as a percentage of generated revenue is expected to be within CMD guidance range on a FY basis.
Likewise, app bookings were up 11 percent year-on-year, reflecting the continued progress 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.”
Morrison pointed out that the company’s strategic initiatives, particularly the early success of its Elevate marketplace tool, are delivering a positive impact on our trading performance.
Thanks to ongoing innovation in Hostelworld’s social network, the company saw significant growth in engagement.
The number of messages sent rose by 42 percent on a trailing six-month basis, and this deep engagement continues to drive growth in app bookings, which are up 11 percent year-on-year.
Also, the number of social members also saw substantial growth, reaching around three million by the end of June 2025, up from 1.8 million in June 2024.
Morrison added: “We continue to evaluate acquisition opportunities as outlined in our CMD presentation. Reflecting our balanced approach to capital allocation and our commitment to long-term growth in shareholder value, we announced a £5 million share buyback programme on 19 June, alongside the reinstatement of a progressive dividend policy. We expect the interim dividend to be paid on 19th September 2025. Overall, I am encouraged by the results of the foundational work laid in the first half, which positions us strongly for sustained growth from 2026 and beyond, and for delivering on our Vision to be the world's leading social travel platform.”
