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