Hostel booking platform Hostelworld Group plc continued to see the impact of COVID with a net loss of €36m on turnover of €17m in 2021, the company has announced in its preliminary results statement.

The company said net bookings totalled 1.5 million, one-fifth of the pre-pandemic volume in 2019.

Net Average Booking Value improved to €12.11 from €9.33 the previous year, though the cost per net booking was €8.77, a €3.57 increase over 2020.

The company disclosed that marketing as a percentage of revenue amounted to 72% compared with 59% in 2020. Administrative expenses fell by 15% to €24.2m.

The company secured a new €30m term loan facility in Feb 2021, with net proceeds received of €28.2m. As a result, despite the huge trading loss, year-end cash improved to €25m from €18m a year earlier.

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Consistent recovery

CEO Gary Morrison commented: "While 2021 was a challenging year both for Hostelworld and the global travel industry, I am pleased to say we saw a consistent recovery throughout the year in both bookings and revenue versus 2019, save for the last few weeks where we saw travel concerns over the Omicron variant.

“I am also pleased to report that we made solid progress on all elements of our strategy during the year whilst continuing to significantly reduce our operating expenses versus 2020 levels.

“Overall, I remain confident that our loyal customer base has more desire than ever to travel and meet other like-minded travellers once restrictions are eased.

“The improvements we continue to make to our platform and our differentiated growth strategy mean we are well-positioned to capitalise on those opportunities as demand continues to return."

The company disclosed that in the 12 weeks 27 March 2022, it has experienced a strong start to the year and a consistent recovery in weekly net bookings and revenues.

“Our business model is highly geared to travel recovery, and we anticipate seeing a continued recovery in bookings throughout the year,” said a company statement.

“Whilst our recent trading data would indicate that the impact of Covid on the travel industry is starting to recede, like many other businesses and industry sectors we face new uncertainties related to the effects of the Russian invasion of Ukraine.

“As we approach the important second quarter it is too soon to give definitive guidance for the year."

At the current share price level, the market values Hostelworld at c.€96m.