Hostelworld found itself on the end of a 75% slump in revenue between the first halves of 2020 and 2021, as pandemic-related travel restrictions continued.
The budget accommodation online travel agency captured revenue of just €2.9 million between January and June this year, down from €12 million in the same period in 2020.
Adjusted EBITDA for the group came in at a loss of €9.7 million, an increase from its position in the red of €8.3 milion in H1 2020.
Ireland-based Hostelworld says the short-term outlook for the sector remains "extremely challenging" but it is confident of emerging from the COVID-19 crisis "stronger than before."
Customer demand is returning in areas where travel restrictions have been eased, CEO Gary Morrison says, with domestic travel in the U.S. and countries in the south of Europe showing a strong recovery.
He adds: "As the recovery has progressed we are also seeing the economic benefits of the initiatives we have already taken to strengthen our core platform, driven by improvements in inventory competitiveness, user experience enhancements and improved marketing capabilities."
The capture some of the demand in the market, Hostelworld continued with its marketing activities during the first half of 2021, spending €2.4 milion in the six-month period.
This figure is down from €7.5 million in the corresponding period in 2020 and represents around 64% of net revenue.