Will Hostelworld phase out HostelBookers?

A lot of information and insight in this article from Skift.

Hostelworld Group Continues Shift From Multi to Single Brand

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.

It was a good move when Hostelworld bought Hostelbookers because it established a monopoly at the time and allowed the company to strong-arm the industry into paying higher commissions.  It also made it easier to convince potential buyers of the company’s revenue potential.  

Now HW have put the majority of their focus on marketing their brand and on attempting to attract new customers for the hostel market.  

On the other hand, Hostelbookers was rebranded to target travelers who are more interested in cheap accommodation while they attend events than the social aspects or community vibe of hostels.  Luckily for all of us, the drop in bookings could possibly indicate that there is less demand from that section of the market.