Brief
Hostelworld cuts profit outlook as Iran war dents long‑haul travel demand
The hostel‑booking platform said the Middle East war reduced long‑haul volumes by about four percentage points, prompting a profit forecast cut and a share slump.
By Felo News Desk · Published
Hostelworld warned that the ongoing Iran war and a broader softness in long‑haul travel will suppress demand through the rest of 2026 and into 2027, the company said on Wednesday.
Shares fell roughly 7.3% in morning trading, reaching their lowest level in almost four years. The firm, founded in 1999, said net transactions slipped about 2% in the third quarter, with the conflict knocking travel volumes on Europe‑Asia/Oceania routes by around four percentage points.
Despite the dip, net revenues rose 7% year‑on‑year to €27.9 million for the three months to the end of September. Hostelworld still expects overall revenue growth of about 10% for the year but projects mid‑single‑digit net‑revenue growth in 2027 because of the “current long‑haul environment”. Adjusted EBITDA rose to €8.3 million from €7.9 million a year earlier, and the company now targets €20‑21 million EBITDA for the year, below analyst forecasts of €22.9 million.
Group chief executive Gary Morrison said the conflict reduced volume growth by roughly four percentage points, adding that softer demand on Europe‑America routes and lower organic web traffic across the industry also weighed on results.
Key facts
- Hostelworld cut its 2026 profit guidance after the Iran war reduced long‑haul travel volumes. (independent.co.uk)
- Shares fell about 7.3% on Wednesday, their lowest level in nearly four years. (independent.co.uk)
- Net revenues rose 7% to €27.9 million for the quarter to end‑September, while adjusted EBITDA increased to €8.3 million. (independent.co.uk)
- The company expects revenue growth of around 10% for the year but mid‑single‑digit net‑revenue growth in 2027. (independent.co.uk)
- CEO Gary Morrison said the Iran conflict cut volume growth by roughly four percentage points. (independent.co.uk)
Sources
- [1] independent.co.uk — originally reported as “Iran war weighing on long-haul travel demand, says Hostelworld”
