Hostelworld CEO discusses strategic growth and market share increase
London, UK
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May 09, 2024 06:52 AM Eastern Daylight Time
Hostelworld Group PLC (LSE:HSW, OTC:HSWLF) CEO Gary Morrison highlights significant advancements in the company's strategy and operational results in an interview with Proactive's Stephen Gunnion.
The company, a key player in online hostel bookings, introduced social features in its app about two and a half years ago, aiming to enhance user interaction by connecting travellers based on their destination and stay dates. These features have been pivotal in increasing app downloads and subsequently, app-based bookings, which have grown 49% year-over-year, compared to a 27% increase in web bookings.
Hostelworld's innovative social strategy, designed to cater primarily to solo travellers aged 18 to 35, has significantly boosted its market share. This strategy, coupled with an effective marketing approach, has led to a 34% increase in revenue and a 37% increase in net bookings year-over-year.
Morrison also noted a geographical shift in the company's market, with substantial growth in Asia and continued strong performance expected in various global markets.
Furthermore, he discussed the company's financial health, mentioning efficient cash conversion from EBITDA and strategic financial decisions, including a share repurchase program to offset dilution from previous share issuances.
Looking forward, Hostelworld anticipates continued revenue and bookings growth, aligning with its strategic projections established in November 2021.
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