Alan Clarke: learned about the internet with Yahoo!

Modern Twist On Old Fashioned B&B Headquartered in Dublin, Homestay has raised over €3m in funding as it seeks to rival the likes of Airbnb in the bed-booking space, writes GERRY MULLINS

he homestay idea isn’t new: people travellers desiring a more personal replicated by Homestay in the global have long been renting out spare and cultural experience than they homestay market. The two secured space in their homes for a night, a would get in hotels. financial backing for the idea and T week or a few months. Ireland Launched in mid-2013, Homestay spent a year in development. built its tourism industry on the has already signed up 15,000 concept, calling it the B&B. Visitors homestay hosts in 30 countries, and Commission were offered an authentic Irish has processed 50,000 bed nights. The Homestay’s website allows hosts to experience because they were staying company employs 20 people, all in display their accommodation for free. with an Irish family, eating Irish food Dublin. Although Homestay is coy When a booking is made, Homestay and learning about the local culture. about discussing its targets over the takes a 15% commission on the Dublin startup Homestay has taken coming years, the firm clearly has booking price. What differentiates the this age-old practice and given it an IT global ambitions. business model from other revamp. The hope is to foment an Homestay was born after Debbie accommodation providers is that the Amazon- or Google-type consumer Flynn – a 30-year veteran of the host must be present. The company’s revolution, this time in the travel homestay industry – joined forces with website advises intending hosts: accommodation space. Homestay is Tom Kennedy, one of the founders of “There needs to be a host family living targeting students spending a Hostelworld.com. They decided that in the home during the guest’s stay, semester abroad, as well as Hostelworld’s achievements in the making it a truly authentic and unique backpackers and mainstream global hostel industry could be travel experience.” Homestay has

BUSINESS PLUS FEBRUARY 2014 22 E-COMMERCE

raised venture capital funding of €3m from Delta Partners. A number HOMESTAY’S MARKETING MIX of private investors from the UK have also bought in. omestay’s marketing is mostly on AdCentre (aka Bing Ads), sponsored ads The firm’s main office is situated on digital platforms, such as AdWords, on Facebook, and paid ads on Twitter. the north-west corner of St Stephen’s HAdCentre, Facebook and Twitter. Around 20% of our online marketing Green. The office has a reception “These allow us to be very specific in our spend is on social platforms, and around area, but instead of a receptionist the targeting, giving the company the ability to 80% on search and display.” space is occupied by a collection of advertise by country, city and demographic Most of Homestay’s digital spend today high-end bicycles. The walls are group,” says chief executive Alan Clarke. is on Google platforms (search 55%, mostly large expanses of white, bare He adds that Homestay’s digital display platform 20% of total spend). except for desktop-printed pictures marketing campaign goals are very simple: “We are experimenting with other ad and charts. There is a quiet buzz as to achieve brand awareness and to attract platforms and will pursue those that show the company’s software development more hosts and guests. “The platforms we potential to deliver a positive return on and digital marketing teams go about are using to achieve this include AdWords, investment,” says Clarke. their work. The average age is around 30, and there is an even split of females and males. It seems everyone an award given to students who the Weekend Downtime is casually dressed. college believes can consistently Clarke joined Paddy Power in 2011 to demonstrate “exceptional knowledge run some of its online businesses. “It Table Tennis and understanding of their subjects”. was a great opportunity to take a step On one of the desks there is a large Clarke graduated in 2003 and went into a commercially focused role,” he gold trophy, signalling that the to London to work as a management explains. “I had always wanted to run occupier is the reigning Homestay consultant with McKinsey & and build businesses, and to build e- table tennis champion. The tennis Company, before joining Yahoo! two commerce businesses based out of table is located in a top-floor room, years later in a corporate Ireland.” Clarke left Paddy Power to which is where we talked with development role based in Silicon join Homestay last September. Homestay chief executive, Alan Valley. The Homestay chief travels to work Clarke (33). Clarke exudes “I learned a huge amount from each morning by bicycle, arriving to confidence. The son of a doctor, his Yahoo!,” says Clarke. “Basically I the office most days around 8.15am, first business foray came as a fourth- learned how the internet works and I where he works a 12-hour day. “I try to year student at Portmarnock was really impressed by the leave around 6pm on Fridays and to Community School in north Dublin, entrepreneurial spirit and endeavour keep weekends free.” A Spanish version when he worked with a company that that existed there. That has inspired of Homestay has already been laun- imported and assembled clock parts me to do what I’m trying to do now. ched, with a Portuguese version in the from Poland. It’s phenomenal what people in a works. Clarke hopes to target other Clarke went on to study small pocket of the US have been able languages soon. “We are constantly management science and information to achieve in terms of disrupting the building our inventory and we seek to systems at Trinity College and was way people do business and build our presence in key global mark- awarded a Foundation Scholarship, communicate with each other.” ets. It will take some time,” he says.