Will You Soon Be Paying More Money To Advertise On HomeAway?

By October 23, 2014 Marketing, News

Will The Homeaway Expedia Partnership Cost You More?

 

Have you heard about the Homeaway Expedia partnership?

Could you soon be paying more for your HomeAway bookings and subscriptions?

In November of 2013, Homeaway announced an epic partnership with the travel giant, Expedia.

Less than a year later, the market- shattering partnership between Homeaway & Expedia has formed.

 

It is beginning to take its true form, as it reshapes and transforms the vacation rental industry.

 

I was recently contacted by a vacation rental owner who expressed to me their frustration with a new policy that was put in place by HomeAway.

 

The owner was upset because HomeAway implemented a new policy that requires owners to turn on the online booking functionality on their listings if they want to keep up the level of inquiries they receive from HomeAway.

 

What does this have to do with pricing and partnerships?

 

HomeAway told owners that if they do not turn on this online booking feature, their listings will be penalized in their search engine, resulting in less exposure for those properties that do not comply.

 

Owners have shared with me that they’ve experienced this penalty in the form of lower ranking scores and they’ve seen their HomeAway inquiries decrease.

 

It appears there may be a reason HomeAway is making these changes, and it directly correlates with its recent partnership with Expedia.

 

The partnership between these two giants is young and still evolving. I expect to see more rules, policies and system changes in the near future.

 

The question now is, will you be charged more in the not so distant future? I am strongly inclined to say “yes.” In fact,  owners on the pay-per-booking model will soon see an increase in their booking fees.

 

Vacation rental owners and property management companies have paid HomeAway 10% commission per booking facilitated through their website.

 

A recent statement from HomeAway detailed that owners and managers will have to pay an extra fee of 3% for credit card processing.

 

“Owners will now pay 13% for bookings made through their site,” said Jon Gray, senior vice president for the Americas at HomeAway.

 

As of now,  the only owners and property managers who can have their properties listed on Expedia through HomeAway’s syndication service are those who are using HomeAway’s commission pay-per-booking model. However, that could change.

 

“We are working toward offering customers the opportunity to participate in Expedia distribution using subscription-based model on HomeAway sites,” Gray told MainStreet.

 

Whenever there are changes with HomeAway, owners get nervous. Do you think this new listing structure will cost you more? If so, will it be expensive?

 

My thoughts are that we could soon see listing subscriptions reach $2500 with HomeAway. Does this sound off target?

 

Do you see any other changes happening with HomeAway or Expedia? How is this personally affecting you?

 

I would thoroughly like to hear how you feel about this. Please share your thoughts by leaving your comments below.

 

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 UPDATE: Download The Locked Conversation Between HomeAway Co-Founder & The VR Industry’s Top Pros.

Click the link below to open the pdf.

VacationRentalLeadersConfrontHomeAwayInHeatedOnlineDiscussion