Yahoo Finance Hostelworld summer growth rate hit by cocktail of Brexit and terror attacks
The boss of online booking platform Hostelworld on Tuesday said terror attacks, Brexit and warmongering rhetoric from Donald Trump have slowed its growth over the summer.
Feargal Mooney said the hostels-booking website had a strong performance in the six months to June 30, but that growth rates from June to August “have been more modest”.
He said some travel decisions have been affected by “general uncertainty… whether around Trump, North Korea, Brexit or terrorism”.
The London-listed company, headquartered in Dublin, also saw some cancellations in Barcelona following last week’s terror attacks in Spain.
But, Mooney said he remains confident in his long-term strategy including expansion in Asia and said it is working to counter the impact of terror and currency fluctuations.
First-half sales rose 16% to €46.6 million (£42.6 million). Pre-tax profits swung into the black, at €5.2 million, up from a loss of €5.5 million in the same period last year.
The firm was helped by a good performance in London, with bookings up 5%.
Numis analyst Tim Barrett said it had “recovered well” from a tough early 2016 when long-haul travel into Europe was hit by terror attacks.
Separately Hostelworld, which is advertised by actor Charlie Sheen, said chairman Richard Segal is stepping down after six years.
He will be succeeded by former Ryanair deputy chief executive Michael Cawley, who is senior independent non-executive director of Hostelworld.
