REPORT David Franklin,
[email protected], 215.493.4104 HomeAway’s Reach Makes It a Necessary Evil for Owners, Managers Companies: AWAY, EXPE, GOOG, KYAK, PCLN, TRIP February 14, 2013 Research Question: Will new bundle options and tiered pricing result in greater usage of HomeAway’s sites, or will the corresponding listing price hikes put off homeowners and property managers? Summary of Findings Silo Summaries 1) VACATION PROPERTY OWNERS HomeAway Inc.‟s (AWAY) new pricing and listing bundle programs Four of six sources were negative about HomeAway, but garnered negative reactions from 11 of 14 sources in the vacation none had plans to completely drop their HomeAway property owner and vacation property management silos. However, listings because of the company‟s lead position and few of these sources expect to abandon listing with HomeAway broad reach in the market. Concerns expressed given the company‟s lead position and market reach. included HomeAway‟s inclusion of unnecessary services, outdated technology and rising listing prices. Eight additional sources, comprising HomeAway‟s competitors, Competition is growing from Airbnb, FlipKey and even property management software representatives and an industry Google‟s AdWords. specialist, acknowledged the company‟s strength and dominance in the industry. They do not expect HomeAway‟s recent changes to 2) PROPERTY MANAGEMENT COMPANIES be a boon or a bane for the company. Seven of these eight sources had negative comments about HomeAway. They clearly recognized its powerful Eight of nine renter sources reported having positive rental position, and do not expect to end or reduce listings experiences through HomeAway and its VRBO subsidiary, and with the company.