Low-cost Icelandic airline Play is going all out for the end of the year by offering a whopping 50 percent off its already low airfare to Europe.
06.12.2023 - 04:28 / skift.com / Dennis Schaal
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, which promises “Affordable Social Adventures,” users can find that after making a reservation, they can “see who’s staying!” and view fellow travelers’ profiles. They can then chat with one another through the app, “make plans and meet up,” it says.
Hostelworld recently launched Linkups, which are hostel-hosted events, as another facet of its social strategy.
“To date the strategy has been extraordinarily successful, generating significant word of mouth recommendations from our customers, strong endorsements from our hostel partners, and significant growth in bookings via our mobile native apps relative to other higher cost channels,” CEO Gary Morrison stated as part of Hotelworld’s interim financial report on the first half of 2023.
Hostelworld customers who aren’t feeling very social have the option to make their app profiles private.
Airbnb is trying to ensure that hosts who haven’t seen their registration applications approved by New York City won’t be able to accept bookings starting September 5 when the city’s enforcement deadline kicks in. As of last week, Airbnb stopped accepting reservations in the Big Apple if hosts have not provided the company with an Office of Special Enforcement registration number.
As of the end of July, New York City had only approved 141 host registrations out of 1,632 applications. The Office of Special Enforcement did not reply to a request for an update on Tuesday.
The Wall Street Journal reported Tuesday that “thousands of New York City Airbnb listings are vanishing from the market” ahead of the September 5 deadline as hosts anticipate the city will get aggressive in its enforcement efforts. Hosts have to be
Low-cost Icelandic airline Play is going all out for the end of the year by offering a whopping 50 percent off its already low airfare to Europe.
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