Hostelworld Group PLC on Thursday reported a narrowed loss and increased revenue for 2021 on reduced operating expenses and a good recovery in bookings.

The Dublin-based online booking platform posted a pretax loss of €36.6 million in 2021, narrowed from €50.5 million in 2020.

This is due to impairment charges falling to just €367,000 from €15.0 million. The impairment in 2021 relates to an unnamed ‘specific project’ following a ‘management decision to cease ongoing investment’.

Annual revenue grew 9.7% to €16.9 million from €15.4 million.

Hostelworld credited this to a consistent recovery in booking demand ‘when and where restrictions eased’. The company explained that the continuation of Covid-19 travel restrictions throughout 2021 led to a more restrained recovery.

Looking ahead, Hostelworld said that it was optimistic about the future due to ‘business improvements’ it put in place.

The company added that there is large pent-up demand for travel and stated that it is well-positioned to capitalise on it.

‘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,’ Chief Executive Gary Morrison commented.

‘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.’

Shares were up 4.6% at 76.53 pence each on Thursday morning in London.

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