Hostelworld agrees with Revenue repay €9.6m warehoused taxes over three years

Gary Morrison, chief executive of Hostelworld. The hostel-booking group that targets millennial and Gen-Z backpackers, has agreed to repay €9.6 million of warehoused taxes, racked up during the Covid-19 pandemic, Photograph: Alan Betson/The Irish Times

The company said it has agreed a 15 per cent downpayment in May, the deadline for companies that availed of the relief scheme to either pay the debt in full or engage with Revenue on how to address with the liability. Hostelworld will subsequently make regular monthly payments over a three-year period.

The result compared to earnings of €1.3 million in 2022 when the travel industry was recovering from the pandemic and a forecast range of €17.5 million to €18 million that Hostelworld set out in October when it upgraded prior guidance.Net revenues, mainly generated by charging 15 per cent commission on hostel bookings, rose by 34 per cent to a record €93.3 million as net bednights booked through the company rose by 30 per cent amid strong growth across all regions globally.

Hostelworld has been winning back hostel bookings market share that had been ceded to general online travel agents such asbefore the pandemic, helped by the introduction of a pioneering social network that invites customers into city and hostel chat groups before checking in. Over half of the company’s bookings are now coming from social members, which has helped reduce marketing spend as a percentage of revenue.Hostelworld reached an important milestone last May when it repaid €28.

Source: News Formal (newsformal.com)

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