2015 vr market trends
DESCRIPTION
ÂTRANSCRIPT
TRENDS IN THE VACATION RENTAL INDUSTRY
BILL FURLONG VP, HOMEAWAY NORTH AMERICA
© Copyright 2015 HomeAway, Inc.
THE DEMAND SIDE: TRAVELER TRENDS
© Copyright 2015 HomeAway, Inc.
AFTER SEVERAL LACKLUSTER YEARS, THERE IS A RESURGENCE IN LEISURE TRAVEL
Two thirds of US adults took a leisure trip in 2014; a new post-recession high. Average household spending on leisure travel is up more than 25% since 2009. © Copyright 2015 HomeAway, Inc. 3
Source: Phocuswright’s U.S. Consumer Travel Report Seventh Edi8on.
TRENDS IN THE KIND OF TRAVEL BEING TAKEN BODES WELL FOR VACATION RENTALS
Travelers say they traveled further in 2014. Travelers say they are taking longer trips. 7+ night trips are up from 30% to 34% of leisure trips taken. © Copyright 2015 HomeAway, Inc. 4
Source: Phocuswright’s U.S. Consumer Travel Report Seventh Edi8on.
FAMILY TRAVEL IS GROWING ESPECIALLY WELL, BOTH WITH YOUNG KIDS AND ADULT FAMILIES
© Copyright 2015 HomeAway, Inc. 5
Source: Phocuswright’s U.S. Consumer Travel Report Seventh Edi8on.
VACATION RENTAL AWARENESS GENERALLY STEADY
© Copyright 2015 HomeAway, Inc. 6
• Overall awareness for vacation rentals has leveled off after several years of strong growth. • While trial is high, vacation rentals are still at a relatively low level as a preferred choice for group travelers.
Source: Ipsos, HomeAway Brand and Category Awareness Tracker, 2009-‐14
19% 27%
32% 34% 33% 34% 32% 32% 33%
40% 46% 44% 41% 40% 42%
0%
20%
40%
60%
80%
100%
Jul 2009 Dec 2010
Mar 2011
Dec 2011
June 2012
Dec 2012
Mar 2013
June 2013
June 2014
© Copyright 2015 HomeAway, Inc.
PRIVATE ACCOMMODATIONS (AKA VACATION RENTALS) USAGE IS ON THE RISE
© Copyright 2015 HomeAway, Inc. 7
13% 17%
25%
8% 10% 10%
14%
22%
3% 3%
9%
0% 5% 10% 15% 20% 25% 30%
2010 2011 2012 2013 2014
Percent of US Travelers Who Have Rented Private Accommoda9ons
Total Combined
Home/Apartment
Shared Space
Source: Phocuswright’s Rentals Rising: The State of Private Accommoda8on in U.S. Travel, 2015
WHILE USAGE FOR VACATION RENTALS IS UP, IT IS STILL WELL BEHIND HOTELS
78% of travelers report that they have stayed in a hotel/motel on their last leisure trip. 9% stayed in vacation rental on their last leisure trip. © Copyright 2015 HomeAway, Inc. 8
Source: Phocuswright’s U.S. Consumer Travel Report Seventh Edi8on.
78%
39%
9%
Hotels Vacation rentals
Preference – first choice of group
travelers
Source: Ipsos, HomeAway Brand and Category Awareness Tracker, 2009-‐14
TRAVELERS MUCH MORE LIKELY TO BOOK VACATION RENTALS AS PART OF LONGER TRIPS
© Copyright 2015 HomeAway, Inc. 9
• For a long vacation, vacation rentals are a much more common preference, with 16% of travelers selecting them for their accommodations.
© Copyright 2015 HomeAway, Inc.
VR ONLINE SEARCH DEMAND UP 10% YEAR OVER YEAR
HomeAway Confidential© 2014 HomeAway. All rights reserved. 10
Source: Google search volume, all devices, “vacaSon rental” query category by US site visitors, 2013 through 3Q2015
• Search for VR search terms is up year over year
© Copyright 2015 HomeAway, Inc.
© Copyright 2015 HomeAway, Inc. 11
Women, 53%
Men, 47%
Women Families and Groups
49% 51%
40%
60%
25%
35%
45%
55%
65%
High School/Some College
Bachelors Degree +
US Travelers
VR Travelers
Well Educated Affluent
0% 10% 20% 30% 40% 50%
Under $50k $50k-‐$100k More than $100k
Non-‐Renters
Renters
1, 3%
2, 29%
3-‐4, 33%
5-‐6, 19%
7+, 17%
VACATION RENTALS APPEAL TO AN AFFLUENT TRAVELER
© Copyright 2015 HomeAway, Inc. 12
17%
26% 27%
36% 37%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Under $50k $50-‐75k $75-‐100k $100-‐$150k $150k+
Percentage of Travelers Who Have Rented Private Accommoda9on
31% 44% 42%
57%
106%
0%
20%
40%
60%
80%
100%
120%
Under $50k $50-‐75k $75-‐100k $100-‐$150k $150k+
2013-‐2014 Change in Percent Ren9ng Private Accommoda9on
• High income travelers are more likely to rent private accommodation. • High income travelers are also the fastest growing segment of renters.
Source: Phocuswright’s Rentals Rising: The State of Private Accommoda8on in U.S. Travel, 2015
© Copyright 2015 HomeAway, Inc.
THE US VACATION RENTAL CUSTOMER IS GETTING YOUNGER
© Copyright 2015 HomeAway, Inc. 13 Source: Phocuswright’s Rentals Rising: The State of Private AccommodaSon in U.S. Travel, 2015
0% 5%
10% 15% 20% 25% 30% 35%
18-‐24 25-‐34 35-‐44 45-‐54 55-‐64 65+ Total
Percent of Travelers Who Have Rented Private Accommoda9on by Age
2013
2014
• More than half of rental travelers are 25-44. • Strongest growth is in the 18-44 segment.
Source: Phocuswright’s Rentals Rising: The State of Private Accommoda8on in U.S. Travel, 2015
© Copyright 2015 HomeAway, Inc.
© Copyright 2015 HomeAway, Inc. 14
MORE RENTERS ARE CROSS-OVER HOTEL CUSTOMERS
19%
47%
35%
10%
39%
52%
0% 10% 20% 30% 40% 50% 60%
Rental decided by someone else
Did not consider a hotel
Considered a hotel
2014
2013
Source: Phocuswright’s Rentals Rising: The State of Private Accommoda8on in U.S. Travel, 2015
VACATION RENTALS CORE CUSTOMER: FAMILIES AND GROUPS
© Copyright 2015 HomeAway, Inc. 15
• 61% of vacation rental customers taking a 4+ day vacation are groups and families. 34% of hotel/resort customers are groups and families.
• One-third of VR customers are couples.
Source: HomeAway research based on naSonal survey of 1,126 adults who take “long” (4+ day) vacaSons, June 2011
41% 26% 27% 22%
17%
6% 3% 5%
3%
4% 1% 4%
0%
20%
40%
60%
80%
100%
Vacation rentals Hotel/resort Friend's or family's home
Cruise ship
Alone My spouse/partner/S.O. A friend A group not including my family A group of family and non-‐family My family
© Copyright 2015 HomeAway, Inc.
VRS STILL UNDERPENETRATED FOR CORE TARGET: FAMILIES AND GROUPS
© Copyright 2015 HomeAway, Inc. 16
• 17% of 3+ families and groups chose vacation rentals on their most recent vacation. • 43% of 3+ families and groups chose hotels/resorts on their most recent vacation.
Source: HomeAway research based on naSonal survey of 1,126 adults who take “long” (4+ day) vacaSons, 2011
7% 9% 17%
50% 15%
16%
2%
14% 9%
13%
15% 14%
27% 47% 43%
1 solo 2 couple or friends
3+ family or group
Accommoda9on chosen by party size % of adults on most-‐recent long-‐stay vaca9on
Hotel or resort
Other
Cruise ship
Friend or family's home
VacaSon rental
© Copyright 2015 HomeAway, Inc.
SHIFTING OBJECTIONS FROM NON-RENTERS SHOWS WHERE WE CAN GROW APPEAL
Source: Phocuswright’s Rentals Rising: The State of Private Accommoda8on in U.S. Travel, 2015
0% 5% 10% 15% 20% 25% 30% 35% 40%
Prefer hotels (generally)
Never occurred to me
Prefer hotel services (front desk, concierge, etc.)
Prefer hotel room ameniSes
Prefer hotel property ameniSes
Too expensive
Uncomfortable staying in someone else's home
Traveling alone or in a small group
Not familiar with booking process
Concerned about cleanliness
Concerned about safety
Not sure what to do if there is a problem
Not confident in payment process
Reasons Why Non-‐Renters Did Not Consider/Rent a Private Accommoda9on 2014
2013
Higher awareness
Process improvement
Process improvement
Want more services Want more services
Want more services
Want more services
© Copyright 2015 HomeAway, Inc.
STILL INTRODUCING VRS FOR THE FIRST TIME TO MANY TRAVELERS
© Copyright 2015 HomeAway, Inc. 18 Source: Phocuswright’s Rentals Rising: The State of Private AccommodaSon in U.S. Travel, 2015
• A third of guests are first time VR travelers.
Source: HomeAway Customer SaSsfacSon Survey, Q2 2014
First 9me VR
travelers, 32%
Once every few years,
27%
Once a year, 27%
More than once per year, 14%
© Copyright 2015 HomeAway, Inc.
ROOM TO TAKE A BIGGER SHARE OF THE VR TRAVELER SHARE OF ACCOMMODATION SPEND
Growth opportunity from driving a higher “share of stay” from current vacation rental users.
© Copyright 2015 HomeAway, Inc. 19
Source: Phocuswright’s Rentals Rising: The State of Private Accommoda8on in U.S. Travel, 2015
7.2
5.8 5.8
6.7 6.5
0 1 2 3 4 5 6 7 8
<34 35-‐44 45-‐54 55+ Total
Leisure Trips Over Two Years
6% 9% 10% 12%
19% 20% 22% 24%
48% 85% 86%
0% 20% 40% 60% 80% 100%
Hostel My own VR
My own Smeshare Room in a private home
Cruise Timeshare as renter
Campground Inn/B&B
Friends/Family VR as a renter
Hotel/Motel/Resort
Accommoda9on Types used by VR Travelers in 2 Years
3.4 1.7 2.5 1.6 2.2 1.3 1.5 1.5 1.8 3.1 1.5
SUPPLY SIDE: TRENDS IN VACATION RENTAL HOMES
© Copyright 2015 HomeAway, Inc. 20
© Copyright 2015 HomeAway, Inc. 21
VACATION RENTAL HOME PURCHASES ARE SURGING
Source: NaSonal AssociaSon of Realtors 2015 Investment and VacaSon Home Buyers Survey
-‐
200
400
600
800
1,000
1,200
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Units in 000
New and Exis9ng VR Home Sales (units)
© Copyright 2015 HomeAway, Inc. 22
VACATION RENTAL HOME SALES PRICES ARE DECLINING
Source: NaSonal AssociaSon of Realtors 2015 Investment and VacaSon Home Buyers Survey
$-‐
$50,000
$100,000
$150,000
$200,000
$250,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Median Vaca9on Home Sales Price
WHERE THE ACTION IS: TOP SPOTS FOR VACATION HOME SALES
© Copyright 2015 HomeAway, Inc. 23 Source: Phocuswright’s Rentals Rising: The State of Private AccommodaSon in U.S. Travel, 2015
• 2015 was a big year for vacation home sales in resort markets. • In 2015, the South extended its lead as the most popular place to own a vacation home, while the West has
been trending downward.
Source: NaSonal AssociaSon of Realtors 2015 Investment and VacaSon Home Buyers Survey
21% 21% 15% 19%
25% 17% 17% 16%
27%
21%
54%
21%
11% 21% 21%
16% 19% 14% 22%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 2013 2014 2015
Vaca9on Home Sales by Area Type
Resort
Urban
Suburb
Rural area
Small town
15% 17% 18% 15%
12% 12% 14% 14%
42% 45% 41% 46%
30% 25% 28% 25%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 2013 2014 2015
Vaca9on Home Sales by Region
West
South
Midwest
Northeast
© Copyright 2015 HomeAway, Inc.
WHERE THE ACTION IS: TOP TYPES OF VACATION HOME SALES
© Copyright 2015 HomeAway, Inc. 24 Source: Phocuswright’s Rentals Rising: The State of Private AccommodaSon in U.S. Travel, 2015
• No major changes in the distance to the vacation home that people buy. • 2015 was a big year for buying big and small vacation homes with share moving away from the homes in the
middle.
Source: NaSonal AssociaSon of Realtors 2015 Investment and VacaSon Home Buyers Survey
11% 18% 18% 15%
24% 16% 28%
23%
27% 20%
20% 27%
37% 46%
34% 35%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 2013 2014 2015
Vaca9on Home Sales by Distance
501 miles or more
101 to 500 miles
21 to 100 miles
20 miles or less
17% 18% 13% 30%
53% 49% 50%
40%
19% 26% 28% 14%
8% 8% 9% 17%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 2013 2014 2015
Vaca9on Home Sales by Size
3,001 + sq m
2,001 to 3,000 sq m
1,001 to 2,000 sq m
1,000 sq m or less
© Copyright 2015 HomeAway, Inc.
INTENT TO RENT IS HIGH FROM NEW VACATION HOME BUYERS
© Copyright 2015 HomeAway, Inc. 25 Source: Phocuswright’s Rentals Rising: The State of Private AccommodaSon in U.S. Travel, 2015
• An amazing 77% of vacation home purchasers in 2013 said they planned to rent out their home to short-term renters.
• 13 weeks was the median of the number of weeks of rental availability
Source: NaSonal AssociaSon of Realtors 2013 Investment and VacaSon Home Buyers Survey
14%
9%
77%
2013 vacation home purchaser rental intentions
None
Other
Short-term vacation rentals
19%
9%
21%
23%
12%
9%
8%
40 - 52 weeks
27 - 39 weeks
13 - 26 weeks
9 - 12 weeks
5 - 8 weeks
3 - 4 weeks
1 - 2 weeks
Planned weeks of rental availability for new buyers
© Copyright 2015 HomeAway, Inc.
RENTAL INCOME IS A MEANINGFUL SECONDARY REASON FOR BUYING A VACATION HOME
© Copyright 2015 HomeAway, Inc. 26 Source: Phocuswright’s Rentals Rising: The State of Private AccommodaSon in U.S. Travel, 2015
• People mainly buy a vacation home for their own use or for appreciation. • But rental income was a factor for a surprisingly high 78% of buyers. • People expect rental income to cover roughly half of their mortgage payments.
Source: NaSonal AssociaSon of Realtors 2013 Investment and VacaSon Home Buyers Survey
2%
4%
10%
13%
13%
29%
29%
Other
Rental income
For future reSrement
PotenSal price appreciaSon
Low mortgage rates
For personal/family retreat
Low real estate price/ good deal
“Most important factor” driving 2013 vaca9on home purchases
78% 22% Yes 0% 20% 40% 60% 80% 100%
“Was rental income potential a factor in your purchase?”
19% 8%
16% 23%
21% 13%
Doesn't apply 100%
76% - 99% 51% - 75% 26% - 50%
Less than 25%
Amount of mortgage rental is expected to cover
© Copyright 2015 HomeAway, Inc.
© Copyright 2015 HomeAway, Inc. 27
PLENTY OF ROOM FOR RENTAL UNIT GROWTH
Source: Radius survey, 2011.
Total Households: 116M
Households owning second home: 19M
Households owning a vacaSon home: 8M
VacaSon homes rented short-‐term to anyone: 6M
VacaSon homes rented to vacaSoners: 4M
VacaSon homes rented 2+ weeks/year: 3.3M
SIZE MATTERS: 3+ BEDROOM HOMES ARE 50% OF RENTALS
© Copyright 2015 HomeAway, Inc. 28 Source: Phocuswright’s Rentals Rising: The State of Private AccommodaSon in U.S. Travel, 2015
• Half of homes rented out have three or more bedrooms. • The biggest and smallest homes get the most bookings per year with the mid-sized homes lower.
Source: HomeAway internal analysis of VR properSes managed by customers using Escapia in 2015.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Number of Bookings Units
Greater than 7
6
5
4
3
2
1 or less 23
22
19
20
21
22
24
-‐ 5 10 15 20 25 30
1 or less
2
3
4
5
6
Greater than 7
© Copyright 2015 HomeAway, Inc.
INCREASING BOOKINGS PER UNIT AND AVERAGE BOOKING SIZE
© Copyright 2015 HomeAway, Inc. 29 Source: Phocuswright’s Rentals Rising: The State of Private AccommodaSon in U.S. Travel, 2015
• Bookings per year are highest for the largest and smallest properties.
Source: HomeAway internal analysis of VR properSes managed by customers using Escapia.
10
13 14 14 15 16 17 18
19 21
-‐
5
10
15
20
25
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Bookings Per Unit Per Year
$943
$1,090 $1,094 $1,010 $1,024 $1,029
$1,092
$1,248
$1,392 $1,339
$500 $600 $700 $800 $900
$1,000 $1,100 $1,200 $1,300 $1,400 $1,500
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Average Dollars Per Booking
© Copyright 2015 HomeAway, Inc.
SIZE MATTERS: 3+ BEDROOM HOMES ARE 50% OF RENTALS
© Copyright 2015 HomeAway, Inc. 30 Source: Phocuswright’s Rentals Rising: The State of Private AccommodaSon in U.S. Travel, 2015
• Bookings per year are highest for the largest and smallest properties.
Source: HomeAway internal analysis of VR properSes managed by customers using Escapia.
$4,087 $4,024
$3,833 $3,371
$2,630 $2,041
$1,487 $1,111
$858
$0 $1,000 $2,000 $3,000 $4,000 $5,000
9+ 8 7 6 5 4 3 2 1
Dollars Per Booking
28 25
22 22
21 20
19 22 23
10 15 20 25 30
9+ 8 7 6 5 4 3 2 1
Bookings Per Year
$114 $101
$85 $74
$56 $41
$28 $24
$20
$-‐ $20 $40 $60 $80 $100 $120
9+ 8 7 6 5 4 3 2 1
Dollars Per Year (in 000)
© Copyright 2015 HomeAway, Inc.
FEES STEADY; TAXES SLIGHTLY UP
© Copyright 2015 HomeAway, Inc. 31 Source: Phocuswright’s Rentals Rising: The State of Private AccommodaSon in U.S. Travel, 2015
• Bookings per year are highest for the largest and smallest properties.
Source: HomeAway internal analysis of VR properSes managed by customers using Escapia.
13% 12% 13% 13% 14% 14% 13% 13% 13% 14% 14%
7% 7% 7% 7% 7% 8% 8% 8% 8% 9% 9%
81% 82% 81% 81% 80% 79% 80% 80% 80% 79% 78%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
% Fees
% Taxes
% Rent
© Copyright 2015 HomeAway, Inc.
DAY OF THE WEEK ACTIVITY BY BOOKING AND ARRIVAL DATE
© Copyright 2015 HomeAway, Inc. 32 Source: Phocuswright’s Rentals Rising: The State of Private AccommodaSon in U.S. Travel, 2015
• 18% of bookings are created on Saturday and Sunday. Weekdays evenly spread. • 48% of guests arrive on Saturday and Sunday.
Source: HomeAway internal analysis of VR properSes managed by customers using Escapia.
Sunday 8%
Monday 18%
Tuesday 17%
Wednesday 16%
Thursday 16%
Friday 15%
Saturday 10%
Booking Crea9on Day
Sunday 13% Monday
9%
Tuesday 7%
Wednesday 9%
Thursday 14%
Friday 21%
Saturday 27%
Bookings By Arrival Day
© Copyright 2015 HomeAway, Inc.
LEAD TIME: DOWNWARD TREND FOR PAST FIVE YEARS BUT LONGER THAN HOTELS
© Copyright 2015 HomeAway, Inc. 33 Source: Phocuswright’s Rentals Rising: The State of Private AccommodaSon in U.S. Travel, 2015
Source: Lead Sme -‐ HomeAway internal analysis of VR properSes managed by customers using Escapia. Hotel data from Phocuswright’s U.S. Consumer Travel Report Seventh Edi8on.
108 111
96 103
107
97
133
118 120
129
116
97
75
85
95
105
115
125
135
145
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Days
Booking Lead Time
© Copyright 2015 HomeAway, Inc.
CANCELLATIONS: DECLINING CANCELS AND MORE TIME TO RECOVER
© Copyright 2015 HomeAway, Inc. 34 Source: Phocuswright’s Rentals Rising: The State of Private AccommodaSon in U.S. Travel, 2015
• Cancellation rates steadily declining. • Cancellation lead time increasing, giving VR managers more chance to fill cancelled properties.
Source: HomeAway internal analysis of VR properSes managed by customers using Escapia.
18%
16% 15% 15% 14%
13% 13% 12% 12%
10%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Cancella9o
n %
Cancella9on Rate
36
59 60 54
66 66 71
79 72 74
0
10
20
30
40
50
60
70
80
90
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Days
Cancella9on Lead Time
© Copyright 2015 HomeAway, Inc.
OCCUPANCY RATES PEAK IN JULY AND BOTTOM OUT IN MAY AND SEPT
© Copyright 2015 HomeAway, Inc. 35 Source: Phocuswright’s Rentals Rising: The State of Private AccommodaSon in U.S. Travel, 2015
• Average occupancy is in the mid-30% range (including owner reservations). • Owner reservations are roughly 7% of the total.
Source: HomeAway internal analysis of VR properSes managed by customers using Escapia.
32% 36% 37%
33% 30%
35%
44% 40%
30% 34% 34%
36%
0% 5%
10% 15% 20% 25% 30% 35% 40% 45% 50%
Occupancy Rate
0% 5%
10% 15% 20% 25% 30% 35% 40% 45% 50%
Components of Occupancy
Hold %
Owner Res %
ReservaSon %
© Copyright 2015 HomeAway, Inc.
SPEED MATTERS: FAST INQUIRY RESPONSE DRIVES CONVERSION RATES
© Copyright 2015 HomeAway, Inc. 36 Source: Phocuswright’s Rentals Rising: The State of Private AccommodaSon in U.S. Travel, 2015
• Responding to a lead within one hour converts 40% better than a lead handled within one day. • The big jump is responding immediately. The conversion gains from 1 hour to 2 days are far less.
Source: HomeAway internal analysis of VR properSes managed by customers using Escapia, Sept 2014 to Sept 2015.
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
< 1 Hour 1-‐2 Hours 2-‐4 Hours 4-‐8 Hours 8-‐24 Hours 24-‐48 Hours > 48 Hours
Conversion % vs Timeframe of First Response to Lead
© Copyright 2015 HomeAway, Inc.
CHECKS AS A PAYMENT METHOD USED BY VR MANAGERS IS REMARKABLY HIGH
© Copyright 2015 HomeAway, Inc. 37 Source: Phocuswright’s Rentals Rising: The State of Private AccommodaSon in U.S. Travel, 2015
• 30% of total payment transactions worth 48% of transaction dollars are made via check.
Source: HomeAway internal analysis of VR properSes managed by customers using Escapia, Sept 2014 to Sept 2015.
64%
43%
30%
48%
3%
3%
3%
6%
0% 10% 20% 30% 40% 50% 60% 70%
% of Total Payments
% of Total $ Volume
Payment Methods and Amounts
eCheck
ACHCheck
Cash
Check
Credit Card
© Copyright 2015 HomeAway, Inc.
VR MANAGER FEES WIDELY DISTRIBUTED
© Copyright 2015 HomeAway, Inc. 38 Source: Phocuswright’s Rentals Rising: The State of Private AccommodaSon in U.S. Travel, 2015
• Average VR management fee is 23%. • 15% of properties are charged a management fee over 30%.
Source: HomeAway internal analysis of VR properSes managed by customers using Escapia.
0%
5%
10%
15%
20%
25%
30%
35%
6-‐10 11-‐15 16-‐20 21-‐25 26-‐30 31-‐35 36-‐40 41-‐45 46-‐50 51-‐55
Management Fee %
Distribu9on of VR Manager Fees Charged to Owners
© Copyright 2015 HomeAway, Inc.
VR MANAGER FEES BY REGION RANGE FROM <20% TO ALMOST 30%
© Copyright 2015 HomeAway, Inc. 39 Source: Phocuswright’s Rentals Rising: The State of Private AccommodaSon in U.S. Travel, 2015
Source: HomeAway internal analysis of VR properSes managed by customers using Escapia.
© Copyright 2015 HomeAway, Inc.
THIRD PARTY DISTRIBUTION IS SURGING FOR VR MANAGERS
© Copyright 2015 HomeAway, Inc. 40 Source: Phocuswright’s Rentals Rising: The State of Private AccommodaSon in U.S. Travel, 2015
• The dollar value of VR manager bookings through third party sites has gone up 9x since 2011. • In the past year alone bookings have gone up by almost 70%.
Source: HomeAway internal analysis of VR properSes managed by customers using ISILink and EscapiaNET.
$-‐ $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 $160,000,000 $180,000,000 $200,000,000
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
2011 2012 2013 2014 2015
Bookings and Dollars on Third Party Sites using HASP Distribu9on
BOOKINGS
TOTAL RENT
© Copyright 2015 HomeAway, Inc.
THE VACATION RENTAL BOOKING PROCESS
© Copyright 2015 HomeAway, Inc. 41
ONLINE BOOKING CLEARLY BECOMING THE PREFERRED TRANSACTION METHOD
© Copyright 2015 HomeAway, Inc. 42 Source: Phocuswright’s Rentals Rising: The State of Private AccommodaSon in U.S. Travel, 2015
• Clear trend for leisure travelers doing all their booking only online. • Steady decline of the percent who always or usually book offline. • VR online booking is steadily rising but still well below the hotel industry.
Source: PhoCusWright US VacaSon Rentals 2009-‐2014; PhoCusWright U.S. Consumer Travel Report Sixth EdiSon; TravelClick North American DistribuSon Review, Aug 2014 includes OTAs, hotel websites and global distribuSon systems.
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
2010 2011 2012 2013
How Travelers Booked Leisure Trips
Only/usually offline
Both online & offline
Usually online
Only online 12% 14% 18% 20% 22% 24% 28% 31%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
100%
2007 2008 2009 2010 2011 2012 2013 2014
U.S. online share of VR rental bookings
N.A. Hotels 62%
© Copyright 2015 HomeAway, Inc.
BOOKING OFFLINE LESS AND LESS PREFERRED BY YOUNG TRAVELERS.
© Copyright 2015 HomeAway, Inc. 43 Source: Phocuswright’s Rentals Rising: The State of Private AccommodaSon in U.S. Travel, 2015
• Only 11% of young travelers prefer to call the hotel to book. • Calling the hotel is increasingly uniquely preferred by older travelers.
Source: Phocuswright’s U.S. Consumer Travel Report Seventh Edi8on.
© Copyright 2015 HomeAway, Inc.
© Copyright 2015 HomeAway, Inc. 44 • © Copyright 2015 HomeAway, Inc.
A QUARTER OF LEISURE TRAVELERS SHOP USING MOBILE DEVICES
Source: Phocuswright’s U.S. Consumer Travel Report Seventh Edi8on.
© Copyright 2015 HomeAway, Inc. 45 • © Copyright 2015 HomeAway, Inc.
FOR YOUNGER TRAVELERS, MOBILE IS EVEN MORE WIDELY USED.
Source: Phocuswright’s U.S. Consumer Travel Report Seventh Edi8on.
© Copyright 2015 HomeAway, Inc. 46 © Copyright 2015 HomeAway, Inc.
MOBILE IS WIDELY USED THROUGHOUT A VACATION
Source: Google’s The 2014 Traveler’s Road to Decision, June 2014
IN SUMMARY…
• Great macro trends: More travel; more families; longer trips. • VR awareness, trial and overall usage continues to grow rapidly. • The vacation rental traveler is getting younger and more affluent. • The “VR youth movement” is accelerating changes in how travelers search, choose and book. More
mobile. More online booking. • As vacation rentals go mainstream, the barriers to further penetration of non-renters are increasingly
the level of services that hotels traditionally provide. That provides a great opportunity for VR managers to fill that gap.
• Distribution of vacation rentals to third party listing sites is surging. Having a successful online listing program matters more than ever before.
• The rate of vacation home purchases had a banner year. • Trends for VR managers are positive. Bookings per unit and dollars per booking are up.
Cancellation rate is down and cancel lead time is up. • The premium earned from renting larger vacation homes is huge.
© Copyright 2015 HomeAway, Inc. 47
© Copyright 2015 HomeAway, Inc. 48
The whole house. The whole family. A whole vacation.