Hostelworld, the hostel-booking group that targets millennial and Gen-Z backpackers, said growth in transactions was affected as the conflict in the Gulf escalated during the second quarter of the year. While transaction volumes rose by 1 per cent to 3.8 million for the six months through June, the company said that this was about three percentage points lower than what would otherwise have been expected in the absence of the crisis. The effect was most felt in Asia and Oceania, with demand in Europe and North America proving “more resilient”. However, the group’s net revenues rose 12 per cent to €52.2 million, driven partly by the launch last summer of its Elevate marketplace tool to let hostel operators manage inventory and visibility by paying a marginally higher commission rate. Direct marketing spend as a percentage of revenue dipped to 49 per cent from 51 per cent for the year-earlier period, which also helped push earnings before interest, tax, depreciation and amortisation (Ebitda) up 11 per cent to €8.2 million, the company said in a statement on Thursday.The group said that it continues to see its full-year results meeting market expectations. “Our full-year guidance assumes that the disruption associated with the Middle East conflict eases through the second half and broader trading conditions normalise, with the contribution from our growth initiatives increasing as the year progresses,” said chief executive Gary Morrison. “The group continues to monitor the ongoing geopolitical environment but on the basis of the above, we reiterate our guidance for the full year.”