Hostelworld Trading Statement: 2026 Revenue Up About 10%, 2027 Growth Cut to Mid-Single Digits

Hostelworld expects revenue to grow about 10% this year, but it has lowered its view of next year. In a trading statement on October 7, the company said net revenue growth in 2027 should now be in the mid-single digits.

The board gave two reasons: the boost from its higher commission rate will have been absorbed by then, and long-haul travel has not recovered. It also expects softer demand between Europe and the Americas, plus lower organic web traffic across the industry, to continue into 2027.

Third quarter

Net revenue was €27.9m, up 7%. Net transactions fell 2% to 1.6m, but the average value per transaction rose 11% to €15.3. The effective commission rate was 17.8%, against 16.3% a year earlier. Adjusted EBITDA was €8.3m, compared with €7.9m.

The Middle East conflict cut volume growth by about four percentage points. Around 30% of hostel bookings are on Europe to Asia or Oceania routes, which makes the group sensitive to disruption there.

For the first nine months, net revenue was €80.1m (up 10%) and adjusted EBITDA was €16.5m (up from €15.4m). Generated revenue has grown year on year in every week of 2026 so far.

Guidance

For 2026, adjusted EBITDA is expected at €20.0m to €21.0m, against €19.9m last year. Market consensus on October 7 was €22.9m, so the guidance sits below what analysts expected. Direct marketing is expected to stay within the guided range (48% of generated revenue last year).

App and social

The app now accounts for 64% of net bed-nights, up from 62% a year ago. Chat use is growing quickly, with unique users up 37% and messages up 77%. Social members, who book more often and at higher margins according to CEO Gary Morrison, drove net transactions up 10% and make up nearly two-thirds of the total. Third-party budget accommodation and Social Passes are growing as a share of bookings, and event discovery from OccasionGenius was added across the platform in the quarter.

Cash stood at €14.6m at the end of September, with net cash of €3.0m. The company paid an interim dividend of 0.83 euro cents per share on September 18, after completing a £5m buyback in April.

What it means for hostel operators

Hostelworld is earning more per booking through higher commissions, while bookings themselves are flat. For hostels, that means the cost of each Hostelworld booking is rising even as volume stalls. Operators who lean on the platform may want to look at their direct and app-driven channels, and at how much of their Europe to Asia traffic is exposed to the long-haul slowdown.