Hostelworld Group Continues Shift From Multi to Single Brand
Photo Credit: Rapper 50 Cent fronted an advertising campaign for Hostelworld earlier this year. The company is focussing more of its attention on its main brand. Hostelworld
Skift Take
Increasing higher-margin bookings and focusing on growing your strongest brand seems a sensible approach when you are competing in a crowded market.
Big acquisitions can continue to have an effect on a business long after any deal is closed.
Back in 2013 Hostelworld Group splashed out $70.7 million (€62.7 million) on its main rival Hostelbookers, bringing together two of the biggest budget accommodation bookings platforms.
While the purchase was a transformative one for Hostelworld Group, adding 1.8 million extra bookings, it appears the time has come to sideline its former rival.
Over the past year the number of bookings made through its Hostelworld portal have increased from just over 70 percent to 85 percent. And during the six months to the end of June bookings at subsidiary brands, which include the aforementioned Hostelbookers, collapsed by 51 percent.
The reason for the dramatic change seems to be a decision to run these subsidiar
