| The sum paid for Holiday Lettings has not been | | | | advantages, especially as TripAdvisor claims to be |
| disclosed but one would assume that it generated | | | | leaving Holiday Lettings to run independently. |
| very good value for the 2 co-founders of Holiday | | | | The Downside of Growth |
| Lettings. And, since TripAdvisor is owned by the | | | | With boasts from HomeAway that they have |
| publicly quoted Expedia, one would also assume | | | | 500,000 listings worldwide, and TripAdvisor surely |
| that it represents value for Expedia's shareholders | | | | having similar ambitions, we have to wonder |
| over the long term. | | | | whether these sites are becoming too large. With |
| But question: Is this value for the customers of | | | | growth you usually risk losing sight of your |
| Holiday Lettings, the owners and renters that | | | | customer who, in the end, controls the success of |
| have made the site so successful until now? | | | | the product. And with growth some owners claim |
| The Advantages of Competition | | | | that their rental listing is lost among the masses |
| For starters, someone that challenges the | | | | of other rentals in their area. |
| supremacy of HomeAway brings competition to | | | | Where Should the Investment Go? |
| the market place. And with competition, usually | | | | What are vacation rentals all about? Surely they |
| the consumer wins either through price or through | | | | are now exactly what they were 10 years ago - |
| an improved product. Price is unlikely to change | | | | a more personal vacation accommodation option |
| because an annual listing fee on these sites is | | | | than corporate hotel chains, with very good value |
| typically around $300 hundred dollars. If you | | | | and facilities. With the explosion of social media |
| achieve a few weeks rental then it's a relatively | | | | and the trend towards people wanting to engage |
| cheap and hassle free service. So if not price then | | | | with real people, we believe there is a perfect |
| what? | | | | storm between social media, the internet and |
| Perhaps investment in product? Bearing in mind | | | | vacation rentals. If there is investment money |
| the millions which HomeAway is setting aside for | | | | available then let's refine the product to bring real |
| it's marketing programme, including the recent | | | | value to customers - give them the platform and |
| Super Bowl ad, then it's likely TripAdvisor will put | | | | tools to promote everything that's great about |
| some money into Holiday Lettings, or it's US | | | | vacation rentals. Let's see the owner, let's hear |
| based vacation rental business, Flipkey. But aside | | | | their knowledge of the local area, let's see their |
| from investment and some competition for | | | | videos, their Facebook pages - let's bring |
| HomeAway it's hard to see any other | | | | personality back into vacation rental websites. |