Hostelworld Group plc (LSE:HSW) reported a 7% year-on-year increase in net revenue to €27.9 million for the third quarter of 2026, while net transactions declined 2%.
The company attributed the reduction in transactions to conflict in the Middle East and lower long-haul travel demand. Its effective commission rate increased to 17.8% during the quarter.
For the year to date, Hostelworld reported net revenue of €80.1 million, up 10% from the corresponding period, while its effective commission rate increased to 17.7%. Adjusted EBITDA reached €16.5 million.
The group maintained its full-year guidance for net revenue growth of approximately 10% and an adjusted EBITDA margin of around 20%.
Hostelworld said bookings made through its app represented 64% of net bed-nights. The company also reported increased use of its chat functions and is using artificial intelligence tools for traveller matching and content discovery.
The group is investing in paid social marketing and developing products including social passes, third-party budget accommodation and integrated event discovery as part of its strategy to expand its social member base.
Looking ahead, Hostelworld expects continued pressure on long-haul travel to constrain net revenue growth in 2027. The company currently anticipates mid-single-digit net revenue growth for the year.
Hostelworld Responds to AGM Political Donations Vote
Separately, Hostelworld provided an update following shareholder opposition to a resolution at its 2026 annual general meeting seeking authority to make political donations.
The board said its assessment indicated that voting against the resolution reflected general investor policies rather than concerns specific to Hostelworld.
Following shareholder engagement, the board said it would continue its dialogue with investors and would not seek a similar authority relating to political donations at the company’s 2027 AGM.
About Hostelworld
Hostelworld Group is an online travel agent focused on hostel accommodation and social travel.
Its platform includes hostel and city chat rooms, recommendations, event discovery and social products alongside accommodation booking services. The company generates revenue primarily through commissions on bookings and also offers third-party accommodation inventory and other social travel products.
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