Hostelworld spent almost two-thirds of its revenue in 2021 on marketing activity as it attempted to ride the early stages of the post-pandemic recovery period.
The Ireland-based budget accommodation online travel agency increased its marketing spend by 22% year-over-year in the 12-month period to account for 72% of revenue.
Net revenue during 2021 increased by 10% to €17 million, up from €15 million in the pandemic-hit 2020.
The company had hit a record €81 million in revenue in 2019.
Subscribe to our newsletter below
Hostelworld's average booking value increased by 30% to €12.11 in 2021 - credited to what it claims is a "favorable geographical mix, recovery of underlying bed prices and longer length of stay of booking."
Adjusted EBITDA for 2021 saw the company post a loss of €17.3 million, similar to its reported loss during 2020.
The OTA says it is has a strong balance sheet and liquidity for the current trading year, following a €30 million loan facility it securted in Feburary 2021.
CEO Gary Morrison says the buiness has made "solid progress" on its strategy during 2021 and continuing with its plan to reduce operating expenses compared those in 2020.
"Overall, I remain confident that our loyal customer base has more desire than ever to travel and meet other like-minded travellers once restrictions are eased. The improvements we continue to make to our platform and our differentiated growth strategy mean we are well-positioned to capitalise on those opportunities as demand continues to return."