REG - Hostelworld Grp PLC - Publication of Annual Report and Notice of AGM
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RNS Number : 8826Y Hostelworld Group PLC 31 March 2026
LEI: 213800OC94PF2D675H41
31 March 2026
Hostelworld Group plc
("Hostelworld" or the "Company")
Publication of Annual Report for 2025 and Notice of 2026 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 2025 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, 6 May 2026, at the offices of the Company, 8 Harcourt Street,
Dublin 2, Ireland, D02 AF58. A Circular, containing the Chair's Letter and
Notice of 2026 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 2025;
· Circular containing the Chair's Letter and Notice of 2026
Annual General Meeting;
· Form of Proxy; and
· A copy of the draft rules of the Company's Annual Bonus Plan
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 2025 has also been filed with the Central Bank of Ireland.
The Annual Report 2025 (ESEF compliant format), the Circular containing the
Chair's Letter and Notice of the 2026 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
2025 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 2025, 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 2025, released on 26 March 2026, 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 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 2025 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 25
March 2026 and was signed on its behalf by:
John Duggan
Company Secretary
25 March 2026
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),
inflation, the ongoing cost of living crisis and other economic pressures, and
geopolitical tensions, including tensions in the Middle East, remain as risk
factors which can impact demand. The Hostelworld Group strategy can contribute
additional risk such as the potential impacts of social features, while
external factors such as the continuing growth of artificial intelligence also
contribute to our risk environment.
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 and their respective
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 accurately reflect the Group's
principal risks at present.
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 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, monitoring the risk
environment and effectiveness of controls in place. The leadership team
complete a detailed review of the Group Risk Register prior to reporting to
the Audit Committee and the Board.
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 is
it an exhaustive list of all risks that may impact the Group. Individually or
collectively, 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. No emerging risks warranting disclosure have been
identified. However, the risk of artificial intelligence, identified as an
emerging risk in 2024, remains and is considered to be at an increased level
of risk. This reflects the wide-ranging impacts that it has across cyber and
data security, competition, third party management, and platform evolution and
innovation, amongst others. The pace of change in respect to artificial
intelligence requires careful observation, consideration, and management, with
a particular focus recently on the impact of generative AI tools such as
search assistants, OS-level copilots and super-apps which can impact how
customers plan their trips.
The direction of the risk of the impact of uncontrollable events on the Group
has also increased reflecting heightened geopolitical tensions, including
recent Middle East developments impacting travel routes and demand, alongside
broader macroeconomic and climate-related volatility affecting global travel
patterns. Macroeconomic conditions are also considered an increased risk this
year reflecting the rapidly evolving and difficult to predict macroeconomic
environment. External demand factors and travel patterns can have substantial
impacts on the Group and require diligent efforts to manage.
Consideration was given to whether our recent debt facility obtained to
finance the acquisition of OccasionGenius Inc. warranted the inclusion of
financial risk within our primary risks. However, upon consideration of the
quantum of borrowings obtained, the Group's repayment ability, and the
non-complex nature of the arrangement, this was not deemed to be warranted.
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 2025 factors and forward expectations.
Risk Trend Strategic and External Risk (Any external risks outside of the Group's control Technological, Cyber and Data Risk (The systems we use to power our business, Financial Risk (Integrity of reporting and viability of the Group.) Operational and Regulatory Risk (The processes and people we use to power the
impacting our business.) and the data we hold.) Hostelworld model.)
Increased level of risk Macroeconomic Conditions Artificial Intelligence
Impact of Uncontrollable Events
Unchanged level of risk Competition Data Security Taxation People
Execution of Strategy Cyber Security Brand and Reputation
Platform Evolution and Innovation Third-party Reliance
Marketing Optimisation Climate Change and Sustainability
Regulation
Business Continuity
Macroeconomic Conditions Direction of Change: Increasing
Description and Impact The Group's financial performance is closely linked to global travel demand,
which is influenced by macroeconomic factors including economic activity,
employment, inflation, interest rates, currency movements, and consumer access
to credit. Travel services are enabled by the freedom of movement of people
nationally and internationally without prohibitive restrictions. Moreover, it
is supported by affordable air, ferry and train fares at significant scale,
and similarly good access to affordable accommodation.
Shifts in travel preferences, such as toward lower-cost destinations, may
reduce average booking values and constrain revenue growth. Increasing
macroeconomic volatility heightens uncertainty and the risk of adverse impacts
on financial performance.
Management and Mitigation The Board and management monitor key economic, market, and trading indicators
to assess risks and implement mitigating actions where needed. The Group's
globally diversified customer base and destination footprint help offset
regional downturns, with 50-60% of bookings in Europe and the remainder spread
worldwide.
Consumer prioritisation of travel and leisure spending may partially mitigate
macroeconomic headwinds, while operational flexibility allows the Group to
adjust costs and conserve cash if global demand declines materially.
Direction of Change The difficulty in predicting an increasingly volatile macroeconomic
environment increases the risk of impacts to the Group.
Data Security Direction of Change: Steady
Description and Impact As a technology-driven e-commerce business, the Group relies on advanced
software and infrastructure, exposing it to data security risks. Protecting
customer information, proprietary data, and platform integrity is critical.
The Group's hybrid workforce, global contractors, and evolving social strategy
increase complexity, while rapid technological change and gaps in regulation
can complicate compliance with laws such as GDPR.
The Group's hybrid workforce, global contractors, and evolving social strategy
increase complexity, while rapid technological change and gaps in regulation
can complicate compliance with laws such as GDPR.
Management and Mitigation Data protection is a core priority, supported by a comprehensive privacy,
security, and compliance programme. Supplier onboarding requires rigorous
review of data protection and IT security controls. The Group adheres to
leading industry standards, maintains PCI compliance, and implements a
GDPR-aligned data protection framework overseen by a Data Protection Officer
and employee champions.
Hybrid work risks are managed through access controls, single sign-on, and
multi-factor authentication. Expert cloud and security providers support
operations, and new social and product developments are implemented using
privacy-by-design principles and a risk-based approach. Regular employee
training and proactive threat monitoring ensure compliance while supporting
business growth and innovation.
Cyber Security Direction of Change: Steady
Description and Impact The Group faces ongoing cyber threats that could compromise system integrity,
data security, and customer trust. Increasingly sophisticated attacks, coupled
with cloud migration and third-party vendor reliance, elevate the risk of data
breaches, operational disruption, or reputational damage. Insurer coverage may
be constrained in the event of incidents.
Management and Mitigation The Group invests significant resources to strengthen cyber resilience, with a
comprehensive programme addressing internal and third-party risks. Procurement
processes ensure new vendors meet security standards, while monitoring tools
provide real-time threat detection and response.
Policies, procedures, and training are continually updated to reflect evolving
threats and regulatory requirements. Mandatory employee cybersecurity
awareness and cloud-specific skills development courses underpin operational
security. Multi-factor authentication and access controls enhance system
protection and attack resilience.
Artificial Intelligence ('AI') Direction of Change: Increasing
Description and Impact AI technology is evolving rapidly, presenting both opportunities and risks
across the Group's operations.
Generative AI tools such as search assistants, OS-level copilots and
super-apps can impact how customers plan their trips. "Zero-click" journeys
may bypass OTAs entirely, impacting the Groups revenue and profitability.
Cybersecurity threats include AI-enabled attacks, such as social engineering
or algorithmic exploitation. The adoption of AI-enabled tools by third-party
vendors introduces risks of compromised integrity, security vulnerabilities,
or non-compliance with data privacy regulations. Compliance risks include
failure to meet obligations under the AI Act or GDPR, exposing the Group to
regulatory penalties or reputational harm.
AI adoption may also create operational risks from biases, misuse, or
over-reliance on AI-driven decisions, potentially affecting product safety,
customer trust, or competitive positioning. Proprietary data used in AI models
introduces confidentiality, integrity, and availability risks. Regulatory
obligations, including under the EU AI Act and GDPR, create exposure to
potential penalties or reputational harm.
Management and Mitigation The Group have an AI governance framework in place.
While the Group is monitoring developments of generative AI closely,
Hostelworld's strategy is focused on social human connection and experiences
which cannot be replicated easily.
Hostelworld prioritises cyber and data security in mitigating AI risks. AI
tools are confined to secure environments to ensure its integrity, as well as
encryption and monitoring controls.
Tailored employee training on ethical and regulatory considerations of AI has
been rolled out, and the procurement process ensures supplier features meet
prerequisite confidentiality, integrity, and availability standards.
Management and the Board closely monitor developments in AI product offerings.
Potential AI impacts are considered in deriving and implementing the Group's
strategy.
AI features are deployed using a phased rollout approach, controlled "safe to
fail" experiments, and manual oversight to ensure responsible use. Human
intervention remains central.
Direction of Change The pace of change in AI is fast, and it has a wide range of areas in which it
can impact the Group. Careful management focus is required to ensure
appropriate monitoring and mitigation is in place.
Competition Direction of Change: Steady
Description and Impact The Group operates in a highly competitive global travel market, where
competitors, including large incumbents and disruptive new entrants, can
influence pricing, inventory access, and customer acquisition. Competitors
willing to operate at a loss or invest heavily in technology may challenge the
Group's market share and growth.
Competition may also impact supplier relationships, including exclusive supply
agreements, and evolving regulations such as the Digital Markets Act may alter
market dynamics. Changes in technology, including AI, and shifts in customer
preferences - such as increased demand for private rooms or experiential
travel - can influence acquisition costs, demand, and the relevance of the
Group's offering.
Management and Mitigation The Group continuously monitors market share, hostel coverage, and competitor
activity to guide acquisition, retention, and pricing strategies. The Group's
strategy focuses on leveraging its unique market position of having a social
offering through targeted customer acquisition and optimising the
profitability of existing customer cohorts, emphasising customer lifetime
value/customer acquisition cost.
There is a continued focus on improving platform flexibility, enhancing
customer experience, and global expansion. Delivering advanced technology
solutions can help the Group to diversify from exclusive OTA reliance to a
broader experiential travel offering.
Strategic partnerships and commercial agreements secure inventory and
competitive rates, while leveraging the Group's proprietary tools-such as the
"Solo System" and social cues-to maintain supplier loyalty.
The Group explores AI and new distribution channels for customer acquisition
and remains adaptable to market changes.
Execution of Strategy Direction of Change: Steady
Description and Impact The Group continues to pursue an ambitious growth strategy to deliver
attractive sustainable returns for shareholders. Delivering this strategy
requires strong leadership, employee engagement, investment and governance.
The Group operates in an intensely competitive global environment and there is
a risk of loss in market share to competitors or markets generally not
performing in line with expected growth.
In 2025, the Group acquired OccasionGenius Inc. and is integrating its event
discovery platform into the existing social and accommodation offering. This
creates opportunities to strengthen engagement and diversify revenue streams.
Effective integration is critical to realise the intended strategic and
financial benefits.
Management and Mitigation The Executive Leadership Team maintains clear accountability for delivering
strategic objectives, with regular monitoring of operational and financial
performance against targets.
Competitor activity and market trends are closely tracked, allowing timely
responses to changes in the external environment. Investment in the Group's
social platform and ongoing partnership development with hostels supports
differentiation and market positioning.
Dedicated resources, including management oversight and cross-functional
teams, are focused on the seamless integration of OccasionGenius Inc. and the
execution of the broader strategic plan, ensuring alignment with the growth
ambitions presented at the last Capital Markets Day.
Marketing Optimisation Direction of Change: Steady
Description and Impact A significant proportion of the Group's website traffic originates from search
engines, through both paid and organic channels. Visibility and customer
acquisition are therefore highly dependent on search engine optimisation and
search engine marketing.
Search engine algorithms, like Google's, constantly change, affecting our
placement and costs. AI-powered platforms are further influencing search
results, making algorithm management and optimisation crucial for our
marketing strategy and efficiency.
In addition, the Group is dependent on a small number of traffic sources,
subject to margin pressure from escalating bidding competition with other,
larger OTAs, and there is a new risk of zero-click AI search reducing traffic
volumes.
Management and Mitigation The Group invests in skilled personnel for paid and non-paid searches.
In-house expertise and technology adapt to algorithm changes.
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.
Skill enhancement through third-party vendors complements in-house
capabilities for search engine optimisation.
Platform Evolution and Innovation Direction of Change: Steady
Description and Impact Rapid technological change is transforming how customers research, book, and
experience travel, driven by innovations such as AI, mobile applications,
meta-search platforms, social communities, and digital advertising. Failure to
keep pace with these developments risks the Group becoming less relevant to
modern travellers.
Technology obsolescence and the introduction of new products or features also
increase exposure to operational and cybersecurity risks if controls do not
evolve alongside the platform. Continuous innovation is therefore critical to
maintain competitiveness, user engagement, and secure service delivery.
Management and Mitigation The Group monitors emerging technology trends and customer behaviours to guide
platform development and product strategy. Significant investment is directed
to research, product innovation, and collaboration with peer companies and
partners across the travel sector.
Partnerships are leveraged to ensure delivery of advanced, best-in-class
technology solutions for customers and hostel partners. Following completion
of the core platform modernisation, the Group now focuses on continuous
enhancement and optimisation to maintain functionality, security, and
operational efficiency.
People Direction of Change: Steady
Description and Impact The Group relies on attracting and retaining skilled, committed, and motivated
employees for strategic success.
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.
These tend to be specialist roles where competition for talent is high.
Failure to recruit or retain appropriately skilled employees, or to maintain
competitive reward and development offerings, may lead to increased attrition,
loss of institutional knowledge, and reduced capacity to deliver the Group's
objectives.
Management and Mitigation The Group undertakes regular external salary benchmarking to ensure its reward
offering remains competitive and aligned with market standards. People
policies and practices are reviewed and updated on an ongoing basis to reflect
employee needs and evolving ways of working.
The Group operates from three global offices and maintains flexibility in
workforce location to access broader talent pools. Workforce engagement is
supported through the oversight of a designated Non-Executive Director, in
line with the 2024 UK Corporate Governance Code.
Brand and Reputation Direction of Change: Steady
Description and Impact The strength of the Group's brand is critical to customer trust, acquisition,
and long-term growth.
As a result of our social network strategy, we are subject to eexplicit risk
of harmful user-generated content, community moderation failure and a
reputational contagion from viral incidents.
Reputational risk may arise from cybersecurity incidents, poor customer
experiences involving the Group's platform or hostel partners, or ineffective
responses to sensitive issues such as geopolitical events or improper user
behaviour. The Group could be subject to payment fraud, fake property
listings, and review manipulation.
False or unsubstantiated claims relating to inclusion, engagement and
diversity or sustainability may undermine credibility and stakeholder
confidence.
How Hostelworld is perceived as responding to geopolitical developments and
improper user actions could also affect brand integrity and the business.
The increasing use of artificial intelligence presents opportunities to
enhance customer experience and operational efficiency but also introduces
emerging risks relating to transparency, bias, content moderation, and misuse,
which may adversely affect brand perception if not appropriately governed.
Management and Mitigation The Group focuses paid marketing activity on app promotion and product
innovation, supported by brand marketing investment in owned channels and
social media engagement through content creators. Customer relationship
management initiatives integrate social features across the customer journey,
while proactive communication addresses emotive issues like the Ukraine war.
Third-party services are engaged to monitor chat channels and there is a
strict code of conduct in place to ensure appropriate content.
Reputational incidents are managed through established crisis communications
and incident response plans, developed and periodically reviewed with external
public relations advisors. Cybersecurity controls and crisis response
arrangements are in place to mitigate the impact of potential cyber incidents.
Customer experience is supported through dedicated customer service functions
and crisis management policies. In-app social features are governed by clear
terms of use, codes of conduct, and automated moderation processes to address
inappropriate behaviour.
An ESG Steerco oversees sustainability, mitigating risks through third
parties.
Our IT and procurement policies as well as our legal frameworks are reviewed
and updated regularly.
Third-party Reliance Direction of Change: Steady
Description and Impact The Group relies on hostel accommodation providers to supply inventory and
support growth. Any constraints upon the supply of hostel inventory may stem
growth ambitions. Financial pressure on partners may lead to business closures
or reclassification of accommodation, reducing supply.
The Group's revenue also depends on the availability and performance of
third-party systems, channels, and integrations. System outages, delayed
updates, or reduced functionality at third-party providers may disrupt
bookings, payments, or customer service, resulting in lost revenue and
reputational damage.
In addition, reliance on payment processors exposes the Group to risks
relating to pricing changes, service disruption, or unfavourable contractual
terms, which could impact transaction volumes and margins.
Management and Mitigation Nurturing hostel and vendor relationships is a priority. This close
cooperation enables us to monitor market development enabling early
identification of market or partner-specific risks.
There is a dedicated global markets team who are a support function for our
hostels. We rely on close collaboration through frequent contact, including in
person market visits, and a dedicated sales function who target new signups.
Third-party providers are subject to rigorous assessment, due diligence, and
ongoing monitoring, with all contracts processed through the Group's
purchasing and contract review framework.
Service providers are contractually required to meet defined service levels
and incident resolution timelines. System monitoring and alerting are in place
to detect outages promptly, with contingency measures to replicate critical
functionality where feasible.
Annual business reviews, contractual safeguards, and financial health
monitoring support preparedness for partner or service provider failure and
help to mitigate operational and revenue risk.
Climate Change and Sustainability Direction of Change: Steady
Description and Impact Stakeholders increasingly expect the Group to demonstrate accountability and
transparency in relation to climate change and sustainability. Failure to meet
these expectations through ineffective strategy, target setting, delivery, or
disclosure may result in reputational damage and reduced stakeholder
confidence.
Achieving climate-related commitments may also give rise to additional costs,
including investment in sustainability initiatives that could impact pricing
and margins.
The Group is subject to expanding sustainability-related reporting and
disclosure requirements, creating a risk of perceived non-compliance or
insufficient transparency. In addition, evolving customer attitudes towards
travel, regulatory measures such as carbon pricing, and physical climate risks
including extreme weather events may influence travel behaviour, disrupt
operations, and adversely affect revenue and profitability.
Management and Mitigation The Group's climate and sustainability strategy is overseen by ESG Steering
Committees (ESG Steerco) which govern climate-related actions and compliance.
ESG Steerco members receive specialist training from external providers and
engage third-party experts where required to support regulatory compliance,
target setting, and reporting. Stakeholder engagement informs the Group's
sustainability priorities, and progress against targets is reviewed and
published annually.
The Group supports accommodation partners and customers in their
sustainability efforts through dedicated internal resources and initiatives.
While climate-related factors may affect travel patterns, the Group's globally
diversified customer base and destination portfolio help to mitigate the
impact of regional or destination-specific disruption.
Impact of Uncontrollable Events Direction of Change: Increasing
Description and Impact The Group is exposed to external events that are unpredictable and outside its
control, which may adversely affect demand, operations, and financial
performance.
Economic and political instability, changes in travel, trade, or visa
regulations, and broader macroeconomic conditions may reduce demand for travel
and negatively impact profitability.
Security incidents such as terrorist attacks, geopolitical conflicts and
regional instability - including the ongoing conflicts in Ukraine and Gaza and
heightened tensions in the Middle East, including developments involving Iran
- may reduce traveller confidence, disrupt air travel routes, increase
transport costs or restrict access to certain destinations, leading to
declines in booking volumes and revenue.
Disruption within the Group's hostel supply chain ecosystem, including
financial distress, operational restructuring, or reduced capacity of key
partners may constrain growth or service delivery.
Management and Mitigation Our target 18-34-year-old traveller demographic tends to be flexible in terms
of destination and is generally less risk-averse. Travel among this cohort is
often viewed as a "rite of passage", meaning trips are more likely to be
adjusted or redirected to alternative destinations rather than cancelled in
response to geopolitical or external disruptions.
We maintain a close working relationship with our hostel partners to monitor
market conditions and respond swiftly to emerging risks.
Supply chain risks are managed through risk assessment and due diligence
processes conducted by the procurement function in conjunction with relevant
business owners.
Direction of change The direction of risk is considered increasing, reflecting the growing
frequency of geopolitical tensions, regional conflicts, climate-related events
and broader macroeconomic volatility, all of which may contribute to greater
uncertainty in global travel demand.
Regulation Direction of Change: Steady
Description and Impact The Group operates across multiple jurisdictions and is subject to an
increasingly complex and evolving regulatory landscape. Regulatory and legal
risks arise in areas including competition, licensing of accommodation and
experiences, consumer protection, online trading, payments, tax, intellectual
property, data protection, information security, and commercial disputes.
The Group is required to comply with a range of sector-specific and digital
regulations, including payment card association rules, the EU Package Travel
Directive, cookie and consent requirements under GDPR and the ePrivacy
framework, and the Digital Services Act, which imposes content moderation and
transparency obligations. Failure to comply may result in fines, operational
restrictions, reputational damage, or legal action.
Heightened scrutiny of international data transfer mechanisms, including
standard contractual clauses following the invalidation of the EU-US Privacy
Shield, together with evolving global privacy regimes such as the California
Privacy Rights Act, creates ongoing compliance and operational uncertainty.
New and evolving sign-up, reporting, and platform regulations, including the
EU DAC7 directive, may increase administrative complexity, slow onboarding,
affect property categorisation, or result in the removal of listings due to
changes in local laws. Ongoing regulatory developments may increase compliance
costs and constrain business flexibility.
Sustainability-related legislation increasingly requires transparent
disclosure and monitoring of compliance with climate and environmental
obligations.
Management and Mitigation The Group's legal team monitors evolving regulatory requirements, supported by
external advisers where needed, and oversees compliance with consumer
protection, listing rules, governance codes, and market abuse requirements.
Data protection, online safety, and digital regulation compliance are reviewed
on an ongoing basis, with processes updated to reflect developments and
evolving privacy legislation.
The Group maintains appropriate insurance coverage and continues to enhance
operational processes to support compliance and customer experience.
A formal TCFD governance framework, supported by third-party monitoring,
underpins climate-related disclosure requirements.
Business Continuity Direction of Change: Steady
Description and Impact The Group is dependent on the availability and performance of its IT systems
and third-party services to support bookings, payments, and operational
activities. System failures, including outages at key suppliers, could disrupt
services, impact revenue, and damage customer trust.
Weaknesses in business continuity planning (BCP), reliance on a single cloud
provider region, or failure to modernise technology may increase the risk of
prolonged disruption, security vulnerabilities, and reduced system
reliability.
Management and Mitigation The Group maintains a BCP framework focused on critical e-commerce operations,
supported by disaster recovery plans developed with external advisors. Ongoing
technology modernisation and cloud initiatives enhance resilience and recovery
capability.
Supplier contracts include business continuity and force majeure provisions.
BCP arrangements and backup systems are tested and reviewed periodically to
ensure continued effectiveness.
Taxation Direction of Change: Steady
Description and Impact Indirect taxation remains a complex and evolving area due to the variety of
regimes and compliance requirements across the jurisdictions in which the
Group operates. Governments and regulators continue to introduce measures
targeting multinational and digital businesses, including digital services
taxes, enhanced VAT rules, and platform reporting obligations requiring
digital platform operators to collect and report information on third-party
sellers. Non-compliance may result in penalties, increased administrative
burden, and potential disruption to revenue streams. There is a risk that the
Group does not stay ahead of compliance in all jurisdictions in which it
operates. In addition, changes in tax legislation and regulatory
interpretations such as the European Commission's proposals on VAT in the
Digital Age and OECD recommendations may give rise to additional tax
liabilities and increased compliance costs.
Given the Group's global workforce footprint, tax authorities may assert that
a permanent establishment exists in certain jurisdictions based on the nature
or location of activities performed. Furthermore, where key functions, assets,
or risks are undertaken or managed outside Ireland, there is a risk of tax
leakage or challenge to the Group's current tax positions. If tax authorities
adopt a different interpretation of the Group's taxable presence or profit
attribution, the Group may be required to account for taxes not currently
recognised, potentially increasing the effective tax rate, cash tax outflows,
and ongoing compliance costs.
Management and Mitigation The Group manages tax risk through a dedicated and experienced in-house tax
function, supported by reputable external tax advisors. Tax risks and
developments are monitored on an ongoing basis, with regular impact
assessments, updates provided to senior management and the Board, and biannual
reviews with external advisors to address legislative and regulatory changes.
The Group actively monitors its global operating and workforce footprint,
supported by the implementation of appropriate tax structures and the
enforcement of a controlled work-from-abroad policy. Locations of key
functions are formally approved, and transfer pricing policies are designed to
reflect the Group's operating model and value creation, supporting compliance
and mitigating exposure to tax risk across jurisdictions.
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