Hostelworld Gets Even More Social

Staying in hostels has always been something of a social thing given that you might end up staying with six or seven strangers in a bunk-filled room, and many properties have live entertainment and community events. But Dublin-based Hostelworld has integrated its own social network into its business to such a degree that is materially helping its financials.

During the first half of 2023, Hostelworld's marketing costs as a percent of revenue fell 9 percentage points year-over-year to 51%. In a call with financial analysts last week, Chief Financial Officer Carolina Sherry said "our social strategy is the key linchpin" to the improved marketing efficiency. She said the social features generate positive word-of-mouth marketing.

The percentage of its bookings from solo travelers is 66%, up from 60% pre-pandemic, and that's another metric officials tie to the company's social strategy.

Hostelworld debuted social features in its iOS app in April 2022, updated its Android app a couple of months later, and is continuing to invest.

After downloading the app,