Free Rental Guide!
Learn what it takes to rent your vacation home and maximize your rental income.
Free Rental Guide!
Learn what it takes to rent your vacation home and maximize your rental income.
Expedia recently closed on a $3.9 billion dollar acquisition of HomeAway. As large online travel agencies (OTAs) work to prevail in the rapidly changing vacation rental industry, they may be overpaying to maintain their dominant positions online. A recent article by Dennis Schaal of Skift reveals that as HomeAway makes changes to its booking system and its new traveler booking fees, Expedia may encounter more risks, costs, unanticipated additional marketing expenses, and a long road ahead than HomeAway initially let on. How off was HomeAway in its initial financial projections? It is expected that Expedia will earn $86 million less by 2018 than anticipated.
This isn’t the first time a large OTA didn’t reveal all the major costs and trade offs for travelers, homeowners and property managers. See our take on this issue and what you need to know before you rent through an OTA.
“As Expedia Inc. closes on its $3.9 billion acquisition of vacation-rental leader HomeAway today, it is worth noting that Expedia is buying a company that is likely to be considerably less profitable over the next few years than what Expedia was initially led to believe in talks with HomeAway officials.” – Dennis Schaal, Skift.
Source: HomeAway Initially Oversold Its Performance To Expedia – Skift
Alan R. Hammond is the founder and Managing Director of Holiday Vacation Rentals and Birchwood Property Management. He has served as a Director, Officer, and Treasurer of the Vacation Rental Managers Association (VRMA) and holds the Certificated Vacation Rental Manager (CVRM) designation. A recognized industry leader, Alan is featured in the book The Rental Game: Winning with a Professional Vacation Rental Team by Maureen Regan. Read more....
