Hostelworld is eyeing new products in other areas of the industry as part of a new “roadmap” for the company.
The Ireland-based business saw revenues slump by 69% year-over-year in the first six months of 2020 to €12 million.
The huge drop in revenue was driven by travel restrictions put into place by countries around the world towards the end of the first quarter of the year, Hosteworld says in its earnings report for the first half of 2020.
The “sharp drop” in its trading performance led the company to pursue an equity raise via a stock issue to the tune of €15.2 million in June.
An additional €7 million and €3.5 million was raised through a combination of three-year revolving credit facility and short-term invoice financing credit tool.
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Total group bookings in the business fell by 67% between January and June, with net bookings shifting year-over-year from 3.5 million in 2019 to 1.1 million in 2020.
The company moved to implement a series of measures from April, it says, including a 23% reduction in salaries, short-term layoffs and redundancies.
CEO Gary Morrison, who joined the company from Expedia Group in May 2018 after Feargal Mooney stepped down, says the business although the company is focusing on “organic initiatives” until normal trading levels resume, Hostelworld is continuing its three-year growth plan to expand the business.
This includes a “broader catalogue” of experiences and services beyond hostel accommodation and the addition of social features to connect and travel with “like-minded” travelers, he adds.