REG - Hostelworld Grp PLC - Publication of Annual Report and Notice of AGM
02/04/2025 11:45
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RNS Number : 3614D Hostelworld Group PLC 02 April 2025
LEI: 213800OC94PF2D675H41
2 April 2025
Hostelworld Group plc
("Hostelworld" or the "Company")
Publication of Annual Report for 2024 and Notice of 2025 Annual General
Meeting
Annual Report and Accounts
Hostelworld, the world's leading hostel-focused online booking platform, is
pleased to announce that its Annual Report 2024 has been posted or is being
made available to shareholders today.
Annual General Meeting
The Company confirms that its Annual General Meeting will be held at 12 noon
on Wednesday 7 May 2025 at the offices of the Company, Charlemont Exchange,
Charlemont Street, Dublin 2, Ireland. A Circular, containing the Chairman's
Letter and Notice of 2025 Annual General Meeting, and a Form of Proxy have
also been posted or are being made available to shareholders today.
Documents available for inspection
The following documents:
· Annual Report 2024;
· Circular containing the Chairman's Letter and Notice of 2025
Annual General Meeting;
· Form of Proxy; and
· A copy of the draft rules of the Company's Long Term Incentive
Plan 2025
have been submitted to the Financial Conduct Authority via the National
Storage Mechanism, and the Irish Stock Exchange (trading as Euronext Dublin),
and will shortly be available for inspection at the following locations:
National Storage Mechanism:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism)
and:
Euronext Dublin:
Companies Announcements Office,
Euronext Dublin,
28 Anglesea Street,
Dublin 2
and https://direct.euronext.com/#/oamfiling
The Annual Report 2024 has also been filed with the Central Bank of Ireland.
The Annual Report 2024 (ESEF compliant format), the Circular containing the
Chairman's Letter and Notice of the 2025 Annual General Meeting and the Form
of Proxy are available on the Company's website at www.hostelworldgroup.com
(http://www.hostelworldgroup.com) .
Regulated Information
In accordance with DTR 6.3.5(1A), the unedited full text of the regulated
information required to be made public under DTR 4.1 is contained within the
2024 Annual Report which has been uploaded to the National Storage Mechanism
and is available on the Company's website www.hostelworldgroup.com
(http://www.hostelworldgroup.com) .
The information set out in the Appendix, which is extracted from the Annual
Report 2024, is included for the purposes of complying with Regulation
33(5)(b)(ii) of the Irish Transparency Regulations 2007 (as amended) and its
requirements on how to make public annual financial reports. The information
in the Appendix should be read in conjunction with the Company's preliminary
results for the year ended 31 December 2024 released on 20 March 2025 which
can be viewed at www.hostelworldgroup.com (http://www.hostelworldgroup.com) .
Together, these constitute the material required by Regulation 33(5)(b)(ii) to
be communicated in unedited full text through a Regulatory Information
Service.
Contacts:
Hostelworld Group plc
John Duggan, General Counsel & Company Secretary
Tel: +353 (0) 86 022 3553
Appendix:
Directors' Responsibilities Statement
The Directors are responsible for preparing the Annual Report and the Group
and Company Financial Statements, in accordance with applicable law and
regulations.
Company law requires the Directors to prepare Financial Statements for each
financial year. The Directors are required to prepare the Group Financial
Statements in accordance with UK-adopted international accounting standards
and applicable law. The Directors have also elected to prepare the Group
Financial Statements in accordance with International Financial Reporting
Standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in
the European Union and to prepare the parent Company Financial Statements in
accordance with FRS 101 Reduced Disclosure Framework (the "Relevant Financial
Reporting Framework") and applicable law. Under company law the Directors must
not approve the Financial Statements unless they are satisfied that they give
a true and fair view of the assets, liabilities and financial position of the
Group and Company and of the profit or loss of the Group for that period.
In preparing the Group and Parent Company Financial Statements, the Directors
are required to:
· Select suitable accounting policies and then apply them consistently.
· Make judgments and accounting estimates that are reasonable and
prudent.
· Present information, including accounting policies, in a manner that
provides relevant, reliable and comparable information.
· Provide additional disclosures when compliance with the specific
requirements in IFRSs are insufficient to enable users to understand the
impact of particular transactions, other events and conditions on the Company
and Group's financial position and financial performance.
· Prepare the Financial Statements on the going concern basis unless it
is inappropriate to presume that the Company and Group will continue in
business.
· For the Company Financial Statements state whether Financial
Reporting Standard 101 Reduced Disclosures Framework has been followed,
subject to any material departures disclosed and explained in the Financial
Statements.
The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Company's transactions and disclose with
reasonable accuracy at any time the financial position of the Company and
enable them to ensure that the Financial Statements comply with the Companies
Act 2006. They are also responsible for safeguarding the assets of the Company
and hence for taking reasonable steps for the prevention and detection of
fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company's website.
Legislation in the United Kingdom governing the preparation and dissemination
of Financial Statements may differ from legislation in other jurisdictions.
Responsibility Statement
We confirm that to the best of our knowledge:
· The Group Financial Statements, prepared in accordance with IFRS as
adopted by the European Union and the Company Financial Statements prepared in
accordance with FRS 101 Reduced Disclosure Framework, give a true and fair
view of the assets, liabilities, and financial position of the Group and
Company as at 31 December 2024 and of the profit or loss of the Group for the
year then ended. The Strategic Report includes a fair review of the
development and performance of the business and the position of the Company,
and the undertakings included in the consolidation taken as a whole, together
with a description of the principal risks and uncertainties that they face.
· The Annual Report and Financial Statements, taken as a whole,
provides the information necessary to assess the Group's performance, business
model and strategy and is fair, balanced and understandable. It also provides
the information necessary for shareholders to assess the Group's position and
performance, business model and strategy.
This responsibility statement was approved by the Board of Directors on 19
March 2025 and is signed on its behalf by:
John Duggan
Company Secretary
19 March 2025
Principal Risks and Uncertainties:
Risk Identification
Our business model and results are subject to risks and uncertainties which
could adversely affect our business, financial stability, and cash flows. Risk
is an inherent factor. While demand for hostelling has remained strong,
changing travel patterns including increased travel to lower cost regions,
ongoing inflationary and cost of living pressures, and continuing geopolitical
tensions remain as risk factors which can impact demand. The Hostelworld Group
strategy can contribute additional risk such as the impact of social features,
and external factors such as the growth of artificial intelligence and the
impact on Hostelworld also contribute. Additionally, climate change poses a
number of physical and transition-related risks for our business.
The Group's risk register process is based upon a standardised approach
applied to identify, assess
and mitigate against risks in the business. Within these processes, there is
input across all levels of the business to ensure that risk identification
processes capture all evolving risk areas and mitigating strategies. From the
bottom-up, risk is identified and mitigated at a business unit level by the
executive leadership team, senior management team, their teams, and subject
matter experts including the Data Protection Officer and Head of IT Security.
The Board holds overall responsibility for risk and sets the Group risk
appetite including determining the extent of risk that is tolerable in pursuit
of its strategic objectives. The Board, together with the Audit Committee
conduct a detailed formal half-year and full-year review of the risk register,
including emerging risks and the mitigating actions that are in place. The
Board is satisfied that its risk identification and management systems are
effective, its mitigations and internal control processes are effective, and
that the risks described within this report describe effectively the principal
risks of the Group at present. The Board also considered its obligations in
relation to providing both the annual viability and going concern statements.
The Audit Committee supports the Board in carrying out its risk oversight and
management responsibilities The Audit Committee has delegated responsibility
for risk identification and assessment, in addition to reviewing the
effectiveness of the Group's risk management and internal control systems and
making recommendations to the Board thereon.
The Executive Leadership Team ("ELT") are responsible for ensuring appropriate
risk management is incorporated into the business. They support the Board and
Audit Committee through oversight of risk management processes and monitoring
the risk environment and effectiveness of controls in place. The ELT compete a
detailed review of the Group Risk Register prior to reporting to the Audit
Committee and the Board.
Senior management team members (primarily functional team leads, who report
directly to ELT) are assigned responsibility for the daily management of
risks, reviewing and reporting on the effectiveness of controls in place, and
consolidating the principal risks, and changes year-on-year, for each update
made to the Principal Risk Register. Each risk is assigned an owner on the
senior management team, and additional contributors dependent on the risk.
Subject matter experts including the Head of Tax, Data Protection Officer and
Head of IT Security offer input on risks relevant to their areas of expertise.
We have also engaged third parties to supplement knowledge base where
applicable including climate consultants South Pole and third-party cyber
security specialists.
The ESG Steerco support the ELT in identifying climate related risks and
opportunities under the TCFD framework and supports the Group's ongoing
commitment to ESG matters including monitoring current and emerging ESG
trends, changes in sustainability regulations, and the impacts on the Group.
The ESG Steerco feed directly into the Group Risk Register, and the Climate
Related Risks and Opportunity Register, which are reviewed concurrently.
Overview Principal Risk Register
The most material risks and uncertainties impacting the business are listed
below, together with comments on how they are managed to minimise their
potential impact. The table is not prioritised in a particular order, nor an
exhaustive list of all risks that may impact the Group. Individually or
together, these risks could affect our ability to operate as planned and could
have a significant impact on revenue and shareholder returns. Additional risks
and uncertainties, including those that have not been identified to date or
are currently deemed immaterial, may also, individually, or together, have a
negative impact on our revenue, returns, or financial condition. Each risk
identified is subject to an assessment incorporating the likelihood of
occurrence and potential impact on the Group. This assessment considers that
risks do not exist in isolation, and the relationships between risks can
increase the likelihood of occurrence of a risk and influences the level of
control and mitigations needed to be put in place.
The Group's Risk Register also includes any emerging risks. Emerging risks are
identified from areas of uncertainty, which may not have a significant impact
on the business currently but may have the potential to adversely affect the
Group in the future. There is one emerging risk in the current year relating
to artificial intelligence. Artificial intelligence is an emerging technology
with wide-ranging impacts for cyber and data security, competition and
third-party management amongst other areas. Although it includes significant
crossover with existing risks the pervasiveness and rapid pace of change
warrants assessment on a standalone basis.
The risk associated with the Group's successful execution of strategy is a new
risk in the current year, as we have moved forward from COVID-19, formally
repaid our debt facilities, and are focused on delivering against the
ambitious targets set in our 2022 Capital Markets Day and sharing our targets
at our 2025 Capital Market Day. Financial risk has been removed as a principal
risk.
We repaid our term loan facility in full during 2024 and while there remains a
certain level of foreign exchange movement risk this is not material to the
Group and no longer represents a primary risk. Following an assessment of the
residual risk attached after internal management and mitigation, each
principal risk outlined below has been assigned a direction of change based on
2024 factors and forward expectations.
Strategic and External Risk Technological, Cyber and Data Risk Financial Risk Operational and Regulatory Risk
Any external risks outside of the Group's control impacting our business. The systems we use to power our business, and the data we hold. Integrity of reporting and viability of the Group. The processes and people we use to power the Hostelworld model.
Risks newly disclosed Execution of strategy
Emerging risk Artificial Intelligence
Increased level of risk Data Security
Cyber Security
Unchanged level of risk Macroeconomic Conditions Platform Evolution and Innovation Taxation People
Competition Marketing Optimisation Brand and Reputation
Impact of Uncontrollable Events Third-party Reliance
Climate Change and Sustainability
Regulation
Business Continuity
Removed due to reduced level of risk Financial
No. Category Description and Impact Management and Mitigation Direction of Change
1 Macroeconomic Conditions The Group's financial performance is largely dependent on the wider Management and the Board regularly monitor a range of trading, market, and Steady
availability of, and demand for, travel services. economic indicators to determine any risk to financial performance due to
macroeconomic uncertainties, and any potential mitigating actions required.
The Group's revenue and customer base is global, with a dispersed population
Travel services are enabled by the freedom of movement of people nationally of users, and a geographically dispersed set of destinations. While market
and internationally without prohibitive restrictions. Moreover, it is conditions may decline in certain regions, the globally diversified nature of
supported by affordable air, ferry and train fares at significant scale, and the business helps to mitigate this with circa 50% to 60% of destination
similarly good access to affordable accommodation. markets in Europe versus the rest of the world.
Inflation rates can impact consumer discretionary spending and reduce their
ability to travel. However, this is potentially offset by continued preference
The demand for travel services is influenced by a range of macroeconomic of consumers to prioritise discretionary spending on travel and leisure in
circumstances and their impact on consumers discretionary spending levels. their budgeting.
Economic activity, employment levels, inflation, interest rates, currency
movements and access to credit are among the factors that can impact travel In circumstances where events cause a material decline in consumer travel
demand and patterns. behaviours and patterns on a global scale, management will take necessary
actions to reduce operating costs and conserve cash.
The Group has seen shifts in travel demand towards lower cost destinations
resulting in lower ABVs and a headwind for revenue growth.
No. Category Description and Impact Management and Mitigation Direction of Change
2 Data Security We're an innovative technology group relying on advanced software and Data protection is a priority for the Group. We comply with laws, regularly Increased
infrastructure, which means we can be exposed to cyber security threats. train employees, address threats and support business innovation and growth.
Protecting our e-commerce data and customer information is crucial.
We have a robust and comprehensive data privacy, security, and compliance
Our hybrid model, global contractors, and evolving social strategy heighten programme. A supplier is not onboarded until a rigorous review of their data
data security challenges. protection compliance and IT security controls has been carried out and deemed
satisfactory.
Cloud migration finished in 2022, but cloud security risks persist.
Technological speed and legislation gaps can complicate compliance with We adhere to leading industry standards and are PCI compliant. A data
guidelines and laws. GDPR adherence and secure, scalable IT platforms are protection framework aligned with GDPR is maintained, with a Data Protection
vital. Officer, supported by employee champions.
Direction of change: The sophistication of bad actors continues to grow at Hybrid work risks are assessed, and security measures include single sign-on
rapid pace including their incorporation of new methods based off advances in and multi-factor authentication. Expert providers support us with cloud
artificial intelligence. This poses an increased level of threat to data services and security. Our evolving social strategy and broader product
security. developments are implemented in line with privacy by design, following
guidelines and emerging innovations with a risk-based approach.
No. Category Description and Impact Management and Mitigation Direction of Change
3 Cyber Security The Group is susceptible to cyberattacks, which can impact system integrity The Group dedicates significant resources to enhancing cyber security and Increased
and data security. Hackers' sophistication is constantly evolving, regularly increases expenditure.
complicating risk management.
A comprehensive risk programme manages vendor and third-party risks. Our
Cloud migration adds further cybersecurity challenges, potentially procurement process is robust, proactively ensuring new suppliers are security
compromising customer and proprietary data. Third-party vendors or contractors compliant.
can also be entry points.
Inadequate skills internally might risk cloud data exposure and insurers could
limit coverage for cybersecurity incidents. Additional cyber security measures taken include monitoring tools enable
real-time threat detection and response, policies and initiatives adapt to
regulations and cyber threats, mandatory security awareness training is
consistently updated, cloud-related training ensures skills are developed and
Direction of change: The continuous upward momentum in the cost of cybercrime multi-factor authentication is implemented for better access control and
shows that this risk is increasing. The emergence of AI is a real threat to attack resilience.
all organisations and will become commonplace in cyberattacks.
No. Category Description and Impact Management and Mitigation Direction of Change
4 Competition Competition risks could harm market share and growth. Competitors willing to Continuous monitoring of hostel coverage and market share guides the Group's Steady
operate at a loss pose challenges. Price influences consumer decisions, proactive acquisition and retention strategy.
requiring competitive pricing, discounts, and flexible cancellation policies.
The Group's strategy focuses on leveraging its unique market position through
Competition might lead to losing key suppliers. Large market players and targeted customer acquisition and optimising the profitability of existing
disruptive new entrants pose risks. They may absorb revenue losses and/or customer cohorts, emphasising customer lifetime value/customer acquisition
additional costs to compete on price or bidding strategy, their ability to cost.
grow core inventory base (both in terms of property count and destination
coverage), and their ability to enhance product features faster through depth
of resources.
There is a continued focus on improving platform flexibility, enhancing
customer experience, and global expansion.
Changes in technology, such as AI or other, can impact the Group both
positively and negatively.
Partnerships deliver advanced technology solutions, aiming to diversify from
Changing customer behaviour, such as preferring private rooms (as was seen exclusive OTA reliance with a broader experiential travel offering. Commercial
during COVID-19), could reduce demand or raise acquisition costs. agreements secure competitive rates and inventory, utilising the "Solo System"
and "social cues" to deter competition. The Group explores AI and new
distribution channels for customer acquisition and remains adaptable to market
changes.
Exclusive supply to competitors, new Digital Markets Act regulations, and
evolving market dynamics may influence the competitive landscape and affect
the Group's positioning in the market.
No. Category Description and Impact Management and Mitigation Direction of Change
5 Artificial Intelligence ('AI') AI technology is rapidly evolving. The potential for AI-enabled attacks, such Hostelworld prioritises cyber and data security in mitigating AI risks. AI Emerging
as social engineering (e.g. voice simulation of senior executives) or tools are confined to secure environments to ensure its integrity, as well as
algorithmic exploitation, heightens cybersecurity challenges. encryption and monitoring controls.
The adoption of AI-enabled tools by third-party vendors introduces risks of Tailored employee training on ethical and regulatory considerations of AI has
compromised integrity, security vulnerabilities, or non-compliance with data been rolled out, and the procurement process ensures supplier features meet
privacy regulations. Compliance risks include failure to meet obligations perquisite confidentiality, integrity, and availability standards.
under the AI Act or GDPR, exposing the Group to regulatory penalties or
reputational harm.
AI features are deployed using a phased rollout approach, controlled safe to
fail experiments, and manual oversight to ensure responsible use. Human
Operational risks arise from potential biases, misuse, or over-reliance on AI intervention remains central.
tools, which could lead to unsafe or unsuitable product features, competitive
disadvantage, or erosion of customer trust. AI also poses data risks regarding
the improper use of proprietary data in AI models, risking breaches of
confidentiality, integrity, and availability of critical business information.
No. Category Description and Impact Management and Mitigation Direction of Change
6 Execution of Strategy The Group continues to pursue an ambitious growth strategy to deliver The Group's Executive Leadership Team have clear ownership of the key New
attractive sustainable returns for shareholders. Delivering this strategy activities driving our growth strategy. Regular tracking of operational and
requires strong leadership, employee engagement, investment and governance. financial performance takes place to ensure progress is in line with targets.
The Group operates in an intensely competitive global environment and there is Direct and indirect competitor activity and market performance is closely
a risk of loss in market share to competitors or markets generally not monitored which allows the Group to respond quickly if required.
performing in line with expected growth.
The Group's focus on investment in its social network and strengthening
relationships with hostel partners ensures that it is well positioned in the
marketplace.
No. Category Description and Impact Management and Mitigation Direction of Change
7 Marketing Optimisation A significant portion of our website traffic comes from search engines, both The Group invests in skilled personnel for paid and non-paid searches. Steady
through organic and paid searches. We rely on search engine optimisation and In-house expertise and technology adapt to algorithm changes.
search engine marketing for visibility.
Search engine algorithms, like Google's, constantly change, affecting our
placement and costs. The search marketing team collaborates with Google, gaining search traffic
efficiency insights. Participation in alpha and beta tests give the Group
first mover advantage with new functionality that can help drive efficiency.
AI-powered platforms are further influencing search results, making algorithm
management and optimisation crucial for our marketing strategy and efficiency.
Skill enhancement through third-party vendors complements in-house
capabilities for search engine optimisation.
No. Category Description and Impact Management and Mitigation Direction of Change
8 Platform Evolution and Innovation Over recent years the ever-increasing pace of change of new technology, new We focus on staying current with new trends in technology development and Steady
infrastructure, and new software offerings have changed how customers customer behaviour.
research, purchase, and experience travel. Notable shift changes include AI,
mobile networks, mobile applications, meta-search providers, display
advertising, and social communities.
We invest a significant amount of our product and user experience functions on
research and development and interacting with similar companies both within
and external to travel.
Unless we continue to stay abreast of technology innovation and change, we
risk becoming irrelevant to the modern customer. Technology evolves rapidly,
and updates can become quickly obsolete.
We leverage the capabilities of partnerships to ensure we are delivering best
in class and the most advanced tech-based solutions for our customers and
hostel partners.
As new products and features are offered the relevant cybersecurity controls
must keep pace or risk new exposures.
The Group has largely completed the modernisation of our underlying platform
and now focuses on continuously enhancing and optimising it to ensure it
remains up to date and supports efficient execution across our core platform.
No. Category Description and Impact Management and Mitigation Direction of Change
9 People The Group relies on attracting and retaining skilled, committed, and motivated The Group completes external salary benchmarking to ensure our reward offering Steady
employees for strategic success. is competitive and focuses on constantly evolving people policies to ensure
they meet the needs of Our People.
The Group is dependent on key roles throughout all functions of the business
to drive innovation, ensure efficiency and deliver on the Group's strategy. To access larger talent pools, the Group continues to operate from three
These tend to be specialist roles where competition for talent is high. global offices and is flexible on workforce locations that provide us with
access to talent.
The Group recognises the importance of meeting industry standards in our
reward offering, to keep attrition low and attract new talent. A Non-Executive Director fulfils a workforce engagement role as set out in the
2018 UK Corporate Governance Code.
No. Category Description and Impact Management and Mitigation Direction of Change
10 Brand and Reputation Reduced brand marketing spending is likely to have impacted brand recognition The paid marketing teams focus on promoting the app and emphasising new social Steady
and trust. Attributing a clear return on investment to brand spend is features. Brand marketing sustains active owned channels, with added
challenging due to the intangible nature of brand value, the difficulty of investment in social media content creators, yielding increased engagement on
isolating brand spend and the complexity of customer journeys. Cyberattacks TikTok and Instagram.
and poor customer experiences (with our hostel partners and our services) pose
reputational risks.
An ongoing CRM strategy integrates social features into the customer journey,
while proactive communication addresses emotive issues like the Ukraine war.
False claims about diversity, equity and inclusion or sustainability could
damage reputation.
External PR advisors handle corporate incidents, and the crisis communications
plan is updated with their involvement.
Response to geopolitical developments and improper user actions could also
affect brand integrity and the business.
Artificial Intelligence offers opportunities and tools for Hostelworld but Cybersecurity measures are robust, with a crisis plan adjusted to address
carries new and emerging risks to brand and reputation. potential attacks.
An ESG Steerco oversees sustainability, mitigating risks through third
parties.
Customer service ensures positive experiences, backed by a crisis management
policy. In-app social features include terms, a code of conduct, and automated
moderation for user-reported inappropriate behaviour.
Our IT and procurement policies as well as our legal frameworks are reviewed
and updated regularly.
No. Category Description and Impact Management and Mitigation Direction of Change
11 Third-party Reliance We rely on hostel accommodation providers to supply us with our inventory. Any Nurturing hostel and vendor relationships is a priority. This close Steady
constraints upon the supply of hostel inventory may stem growth ambitions. cooperation enables us to monitor market development.
Revenue depends on connected hostels and third-party channels; lack of updates Rigorous assessment and due diligence are applied to third-party providers.
or outages may cause competitiveness loss. All vendor contracts and purchasing requests must be processed through the
Group's purchasing and contract review process.
Financial pressures on partners risk business closure or category shift.
Service providers are contractually obliged to provide timely resolutions to
Relying on third parties for systems poses revenue and functionality risks, issues. Alerts are in place to immediately capture any downtime and replicate
affecting customer service and brand. as much functionality as possible in-house.
Maintaining relationships with payment processors is crucial, as fee changes
or unfavourable terms could impact transactions.
Annual business reviews and contractual obligations ensure risk mitigation.
Readiness for partner/service provider failure includes financial health
monitoring and risk reduction measures.
No. Category Description and Impact Management and Mitigation Direction of Change
12 Climate Change and Sustainability Internal and external stakeholders are focused on the accountability of the The ESG Steercos govern the actions taken by the Group in relation to climate Steady
Group to climate change. change. The Steerco receives specific training from a third-party provider,
engage with third parties' specialists for additional support where required
and monitor areas of compliance. The Steerco engage with stakeholders to
assess their expectations and publish targets annually.
There is a risk of brand damage if we do not meet these expectations regarding
our sustainability strategy, target setting and actions taken. Meeting our
targets introduces a financial cost for increasing pricing for climate
investments. We have committed resources internally to assisting hostels and consumers on
their own sustainability journeys.
There is an onus on the Group for enhancing reporting obligations and a risk
that the Group is perceived as not being transparent in its external Climate change issues may impact travel decisions and travel patterns by
reporting. customers but is mitigated to the extent that our business is a global one. We
have a dispersed population of users, and a geographically dispersed set of
Changing customer attitudes to travel, any limits placed on travel (e.g. destinations.
flight carbon pricing) or physical climate change risks such as extreme
weather events can impact revenue and profitability.
No. Category Description and Impact Management and Mitigation Direction of Change
13 Impact of Uncontrollable Events The Group is exposed to uncontrollable events which may have negative impacts, Our target 18-34-year-old population tend to be flexible as to destination and Steady
which by their nature are unpredictable and outside of its control. are less risk adverse. Their trips tend to be a 'rite of passage' rather than
a more discretionary or optional vacation resulting in less aversion to these
risks and more flexibility in configuring trips around restrictions.
Economic and political factors including instability and changes to laws on
travel and trade could adversely impact the demand for travel and in turn
impact our operational results and profitability. We maintain a close working relationship with our hostel partners to ensure we
monitor key developments in the market and can take timely mitigating actions
if necessary.
Deterioration in the financial condition, restructuring of operations or
limited resource availability of one or more key stakeholder in our supply
chain eco-system could impact our growth. Risk assessment and due diligence controls are carried out by our dedicated
procurement function and relevant business owner in respect of each
third-party provider.
The threat of terrorist attacks in key cities and on aircraft in flight may
reduce the appetite of the leisure traveller to undertake trips, particularly
to certain geographies, resulting in declining revenues. Geopolitical
conflicts, climate change, natural disasters, or other adverse events outside
of the control of the Group may also reduce demand for or prevent the ability
to travel to affected regions.
No. Category Description and Impact Management and Mitigation Direction of Change
14 Regulation The Group faces regulatory and legal challenges in its global operations. We The legal team keeps abreast of current and anticipated legal requirements and Steady
are exposed to issues regarding competition, licensing of local accommodation consult with external legal advisors on territory specific legal and
and experiences, language usage, web-based trading, consumer compliance, tax, regulatory issues.
intellectual property, trademarks, data protection and information security
and commercial disputes in multiple jurisdictions.
Qualified and experienced in-house lawyers ensure consumer compliance, listing
rules, governance code, and Market Abuse Regulations adherence.
Sustainability related legislation place an onus on the Group to disclose its
compliance. The Group needs to stay aware of all future regulation and policy
changes within sustainability.
TCFD governance structure and third-party monitoring ensure compliance with
climate changes.
The Group is subject to various regulations, including payment card
association rules, the EU Package Travel Directive, and rules on cookies usage
(impacted by GDPR and ePrivacy Directive). The Digital Services Act also External insurance brokers are appointed to optimise insurance terms
imposes content moderation and transparency obligations. reflecting industry standards.
Increased scrutiny of the mechanisms to transfer personal data to third Payment options are expanded for customer efficiency.
countries in relation to the EU-US Privacy Shield and Standard Contractual
Clauses create uncertainty in relation to international transfers of personal
data.
The Digital Services Act is carefully reviewed, and processes are updated for
social functionality and customer reviews.
The California Privacy Rights Act introduces new privacy requirements. Sign-up
regulations, like DAC 7 EU Tax directive, may slow operations, impact property
categorisations, and result in closures due to changing local laws. Ongoing Continuous reviews address online safety, media regulations, and evolving data
legal developments pose potential constraints, compliance costs, and business protection legislation in the wider legal framework.
harm for the Group.
No. Category Description and Impact Management and Mitigation Direction of Change
15 Business Continuity IT system failures, including third-party services, could disrupt bookings, The Group's BCP prioritises e-commerce operations, backed by external Steady
payments, and administrative services. advisors' disaster recovery plans.
Weakness in business continuity planning ("BCP") may lead to major service Modernisation and cloud transition enhance resilience.
disruption. Technology may quickly become outdated posing reliability,
security, and feature delivery challenges.
Robust supplier terms cover force majeure and BCP. Successful COVID-19
response validates BCP and backup systems, which are reviewed periodically for
Sole reliance on one cloud provider region risks business impact from data relevance and effectiveness.
centre outages.
No. Category Description and Impact Management and Mitigation Direction of Change
16 Taxation Indirect taxes are an ongoing area of focus with complexity on different Tax risk management involves qualified personnel and collaboration with Steady
regimes and rules in place in countries where the Group does business. reputable external tax advisors. Regular assessments, briefings to the Board,
Measures introduced include digital services taxes to address multinational and biannual reviews with advisors, address tax impacts and legislative
businesses operating without a physical presence in Europe, and platform changes.
reporting which requires digital platform operators to collect and report
information on sellers, with penalties and potential lost revenue for
non-compliance. There is a risk that the Group does not stay ahead of
compliance in all jurisdictions in which it operates. In addition, changes in Monitoring the global footprint includes implementing the relevant tax
tax legislation such as the European Commission's proposals in relation to VAT structures and enforcing a strict work-from-abroad policy.
in the Digital Age, interpretations, or OECD recommendations may expose the
Group to additional tax liabilities.
Key function locations are approved, and transfer pricing policies align
accordingly, demonstrating proactive tax risk mitigation strategies.
Due to the global workforce footprint of the Group, a tax authority may
consider a permanent establishment to exist in a country by virtue of some
activity being carried on there.
Key functions, assets or risks undertaken/managed outside of Ireland may cause
tax leakage. If tax authorities take a different view than the Group as to the
basis on which the Group is subject to tax, it could result in the Group
having to account for tax that it currently does not pay. This may increase
the Group's effective tax rate, increase tax cash outflows, and increase the
costs associated with tax compliance.
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