Safestay sees 'material reduction' in bookings following coronavirus outbreak

10th Mar 2020 10:17

(Sharecast News) - Hostels operator Safestay said on Tuesday that the Wuhan coronavirus outbreak has had a negative impact on bookings across its entire network.
Safestay stated it had experienced a "material reduction in new bookings" over the last week and noted there was also "a growing number" of group bookings from schools and colleges which were either cancelled or postponed.

However, the AIM-listed group said: "It is too early to say what the full impact from COVID-19 might be in the current financial year, as it is not known how long the virus will continue to impact travel and spending patterns in Europe and the UK."

Safestay highlighted that it had entered 2020 in "a strong financial position" and stated that it was "confident" that it was well placed to weather current challenges and return to growth when the travel market normalises.

In the meantime, Safestay added that it was reducing flexible costs where possible to offset the dip in bookings.

As of 1015 GMT, Safestay shares were down 6.25% at 18.75p.