Hostelworld said that it had seen a “deterioration in bookings” in recent weeks as a result of tightening travel restrictions.
The OTA said that, looking to the rest of the year, “we no longer expect an improvement in the macro travel environment and therefore expect any recovery to be muted”.
The company said that it expected full-year net bookings to be in the range of 20% to 22% of full-year 2019 and net revenue to be in the range of 16% to 18%.
The group said that it had seen “a very modest recovery” in domestic bookings in late June, and short haul bookings into Europe in July and early August as travel restrictions were eased.
Since the end of August, travel restrictions have tightened globally and it said that it had seen demand level off, and in recent weeks experienced a marked deterioration in bookings. It had also seen a “greater than expected” decline in ABVs driven in part by bed price deflation and adverse foreign exchange movements.
As at 9 October the group's net cash position stood at €22.6m, with monthly operating cash burn €2.0m through Q3 which was expected to reduce further in Q4.