217 million euros in turnover; 76% room occupancy rate.
BERLIN – The Berlin based hostel group a&o has started the new year with the momentum of an “exceptionally strong 2023”: “We have big plans and are heading towards key milestones in our company history – new properties, more sustainability, a future-oriented work culture,” says founder and CEO Oliver Winter, looking ahead. With 6.1 million overnight stays (2022: 5.55 million), 2.7 million guests (2.2 million) and a turnover of 217 million euros (172 million), 2023 ranks first in the company’s history. Premieres such as the first sustainability report and regained staff strength also characterize the past year.
Other striking figures include: average room occupancy rate of 76% (67%), 600,000 calls to the reservation hotline, over 85,000 chatbot sessions and 250,000 app users. Winter also talks about the “hostel momentum with a future”: in economically difficult times, people choose a budget product – and then choose it again and again out of conviction: “Once they have experienced how it can work, they will decide more quickly in favor of affordable quality in the future. The proportion of business travelers has just reached the double-digit percentage range – “there is clearly still room for improvement here, and I am very confident that the segment will continue to grow.”
“Core value sustainability”: Net Zero 2025 and an investment of 2 million euros
“Affordable, sustainable travel remains our program,” confirms the a&o founder. Sustainability as a “core value of the business model”, as stated in the first sustainability report, will also set the direction in 2024: the company is investing around two million euros in energy-efficient construction and refurbishment measures, among other things. Until the next major milestone, Europe’s first net zero hostel chain in 2025, the ESG and green team at a&o still has some challenges ahead of it: for example, the carbon footprint per overnight stay is to be reduced from the current calculated 3.73 kilograms to less than 3.0 kilograms. Since measurements began in 2015, a&o has achieved a reduction in emissions of around 56 percent – undercutting the competition by up to 80 percent.
Employer brand: flexibility, diversity, mentoring
Currently 48 nations make a&o an international team player. German as a native language is no longer a prerequisite at the reception desks of the 25 domestic locations, workation and lateral hires are part of everyday life, flexible working time models, mentoring programs and other training and education programs are on the agenda.”a&o has established itself as a corporate brand, now we also want to set standards as an employer brand.”
Meanwhile, a&o has once again proven its position as a digital pioneer: The German App Award 2024 was presented for the first time. Out of 30,000 consumer votes cast on user-friendliness and customer service, a&o emerged as a winner in the “Mobility & Travel” category (more information to follow).
a&o Florence – Opening in early summer
The countdown is on: Centrally located at the Campo di Marte train station, the future a&o Florence is just under half an hour’s walk from the Piazza del Duomo in the historic city center. House no. 39 of the Berlin based hostel group offers around 121 rooms in a former administrative building at Via Mannelli 119. The opening is scheduled for early summer.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
