Hostelworld cuts 2026 profit outlook as Middle East conflict dents long-haul bookings

Hostelworld attributed a decline in long-haul travel demand to the ongoing war in Iran, estimating the conflict cut volume growth by about four percentage points, up from three in the first half of the year. The slowdown is most pronounced on routes linking Europe with Asia or Oceania, while higher travel expenses and unfavorable exchange rates have further weakened demand between Europe and the Americas. Despite these pressures, the company posted a 7% rise in net revenue to €27.9 million for the three months to the end of September compared with the previous year.

Adjusted EBITDA grew to €8.3 million from €7.9 million, and Hostelworld now forecasts full-year EBITDA between €20 million and €21 million, missing the €22.9 million consensus. CEO Gary Morrison noted that demand within Europe and from North America remained broadly flat, and that lower organic web traffic across the industry, partly due to AI-driven search answers, also contributed to the softness.