DAVY VIEW

2019 has repeatedly been described as a year of transition at Hostelworld and so it is proving to be. While progress is evident in the areas that it can control, namely in the execution of its critical ‘Roadmap for Growth’ strategy, trading conditions are difficult. In particular, peak summer booking demand continues to disappoint and cost-per-click inflation is running higher than anticipated. These factors mean that our like-for-like forecasts will come down by c.11% and c.15% for 2019/2020, although we think progress on the strategic reshaping of the business should underpin increased confidence in the company’s mid-term prospects.