a&o Hostels announces record-breaking Half-Year performance
a&o reports a record first half of 2024 with 2.98 million overnight stays, 75% room occupancy, and plans for further expansion in Europe.
The article a&o Hostels announces record-breaking Half-Year performance first appeared in TravelDailyNews International.
BERLIN – “The strongest first half-year in our almost 25-year company history,” confirms Oliver Winter: 2.98 million overnight stays, five percent more than in the previous year, an average room occupancy rate of 75 percent and two more new openings before the end of the year. “We are very much on track,” confirms the a&o Hostels founder and CEO in view of the half-year figures. Europe’s largest private hostel chain currently offers 38 properties in 25 cities and nine European countries – and continues to grow. The a&o Firenze Campo di Marte will open later than planned, but “happy to have a new address with charm”, at the end of the year; another property in the UK will be added to the a&o portfolio in late summer.
With a total turnover of over 111 million euros, the Berlin hostel chain a&o exceeded its previous year’s result by ten percent, making the first half of 2024 the strongest in the company’s history. May and June were the best months with a room occupancy rate of over 80%. Around 1.4 million overnight stays in the first quarter alone already promised a strong first half of the year. The most popular hotels in Germany were a&o Berlin Mitte, a&o Hamburg City and a&o Berlin Hauptbahnhof; and internationally, a&o Prague Rhea, a&o Vienna Hauptbahnhof and a&o Venice Mestre.
Further half-year figures at a glance:
- Top 3 source markets: Germany, Poland and the UK
- 54% domestic guests (2022: 66%)
- >200,000 calls to the service center and >180,000 bot messages
- 75 percent room occupancy (2023: 72 percent)
- Average room occupancy of 80 percent in May and 82 percent in June
- Summer occupancy rate of up to 90 percent expected
“Sustainable, affordable, transparent offers”
Challenges, especially for price-sensitive offers such as a&o, are increased costs, particularly in the food sector. With families, school classes and groups as core clientele, price increases cannot be passed on in full, emphasizes Oliver Winter, “we are always looking for good alternatives.” For example, orange juice has been removed from the breakfast menu until further notice – thanks to alternatives such as apple or multi-fruit juice, guests don’t miss anything: “We focus on sustainable, affordable, transparent offers.” Should further adjustments be necessary, guests are actively asked for their feedback and ideas.
European Championships, Taylor Swift and Coldplay – event travel is becoming increasingly important
Mega events, mega full houses. Whether it’s soccer or concerts – full houses are virtually guaranteed on match and tour dates. a&o also benefits from these spectacles: With an occupancy rate of 100 percent on match days and around 90 percent over the entire duration, the European Championship ensures “extraordinary demand” at a&o. The performances by Taylor Swift and Coldplay also leave hardly any free beds. “The number of event travelers is increasing all the time,” confirms Winter, “regardless of the day of the week – concerts and sporting events are crowd pullers, and people book well in advance.” The a&o club membership provides substantial discounts even at peak times: a&o regular guests can benefit from price reductions of up to 25 percent.
77 percent less since 2015 – a&o further reduces CO2e emissions
a&o was able to reduce its CO2e emissions by a further 410 grams per overnight stay last year, reaching the calculated average value of 3.32 kilograms (2022: 3.73 kg). This corresponds to a reduction of over 77 percent since measurements began in 2015. “The figures are really good,” comments Oliver Winter, “but there is still a lot to do,” says the current, second a&o sustainability report. a&o’s goal is to be Net Zero by 2025.
“In future, the travel experience will go much further than accommodation and food,” Winter is certain, “it will be more and more about engagement, interaction and awareness.”
The article a&o Hostels announces record-breaking Half-Year performance first appeared in TravelDailyNews International.