Dublin-based online travel agency (OTA) Hostelworld Group shed more light on its social strategies at Capital Markets Day 2025 in London this week.
During his remarks, CEO Gary Morrison highlighted the importance of social networking and helping travelers connect, particularly due to Hostelworld’s younger customer base. And last week, the OTA expanded its social strategy, launching its “global trip plan marketplace" to help travelers make connections ahead of their trips.
According to Morrison, the solution requires users to create a social profile when they download the Hostelworld app. This may include trip plans, dates or information on the kind of people they’d like to meet, while giving them the opportunity to add photos and videos. Users can then scroll through other people’s profiles to connect and chat.
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In the third quarter this year, Morrison said the company will be collecting proprietary data from this feature to integrate into its artificial intelligence (AI)-powered categorization platform. The platform will then "match" like-minded travelers who may be interested in meeting up at a given destination. Its AI-powered chat features will also provide guidance on popular experiences.
“If you think about a marketing funnel, you have research, consideration, [which] then becomes booking,” Morrison said. “We created a product that now works higher up the funnel, so we’re able to create value earlier in the research and booking phase, before you even made a booking.”
Using data from historical chat interactions, it can also match travelers to relevant groups and recommend activities, bars and destinations. When asked about the benefit for Hostelworld’s hostel partners, Morrison said that it will add value via increased bookings.
“We are at the beginning of a very exciting journey. We’re starting to build data products, rather than web products, and we have an enormously long runway ahead of us,” Morrison said.
A growing social network
Hostelworld is continuing to build its existing base of social members, who then create a unique network of authentic “customer testimonials,” Morrison said.
“They are better than any ad we could ever create because they’re authentic, they’re made by real customers.”
To power a social media flywheel, Hostelworld will flag new posts that include its hashtag, sending an automatic request to license the content and repost it on its own social feeds. The company will also work with influencers to create new content, with the “best” influencers likely drawn from Hostelworld's own pool of customers, Morrison said.
In the short term, Morisson said this initiative will account for the “low, single-digit percentage” of its spend and an investment over the next six to 12 months.
“But in the longer term, these are clearly the channels and the networks where our customers reside which are going to have more favorable economics than some of the paid channels we currently use,” he said.
Another way Hostelworld is hoping to grow is by expanding its hostel presence, specifically its local presence in Latin America and Asia, and enhancing the platform to give hostels more flexible tools.
Improving numbers
The company recently reported earnings for 2024 as well. Net revenue for the year was €92 million, down slightly from €93.3 million in 2023. Adjusted EBITDA was higher, however, coming in at €21.8 million versus €18.4 million the year prior. Hostelworld reported 6.9 million net bookings, an increase from 6.5 million in 2023. Last year, 80% of bookings were made by social members, up from 67% in 2023.
The OTA also paid back a total of €17.5 million to AIB in June 2024, two years ahead of schedule.
“In 2024, we achieved growth in net bookings, driven by record booking performances in Asia and Central America. This was a reduction in average booking values as a result of a shift in consumer demand towards lower cost destinations,” Morrison said in the report.
“Our social strategy continued to drive engagement while enhancing efficiency, reducing marketing costs as a percentage of generated revenue and contributing to an overall growth in profitability.”
This year, Hostelworld is targeting mid- to single-digit revenue growth, and in 2026 and 2027, it is targeting low double-digit growth.