Holiday rentals demand fuels boom for HomeAway Inc

Annual results released this month by HomeAway Inc, a world leader in the online holiday rentals market, reveal the emergence of the industry as an increasingly significant player in the mainstream travel market.

The statistics highlight a 43% year on year surge in booking enquiries from the UK, with the number of Brits listing their properties on the company’s website also up 45% on the previous year. The rapid growth of the holiday rentals sector can be attributed to the access to market provided by HomeAway.

Petra Friedmann, President of HomeAway Europe said: "Our latest figures confirm that we are a success story in today’s challenging economic climate - the company has been growing faster than any other major travel sector for several years now. We are excited about our growth prospects for 2010, as an increasing number of holiday home owners look to cover their costs with rentals and more cost conscious travellers discover the great value holiday rentals provide."

In 2009, according to Comscore, European unique visitors to HomeAway sites increased 65% year-on-year, while visitors to the broad travel category increased by just 11%*. Additionally, a recent survey by HomeAway revealed that in the UK, holiday home rentals are the second most popular accommodation choice for 2010 holidays. Whilst 45% of Brits will stay in a hotel for their main 2010 holiday, 17% will opt for a holiday rental, versus 12% for a campsite or caravan and 5% for a B&B**.

The rapidly growing trend for holiday rentals among UK travellers has contributed to the company’s global revenue of approximately £75 million ($120 million) for the year ended 31 December 2009, representing an impressive year-on-year increase of 45%, achieved against the backdrop of a recession. The results also reveal that over one third of the revenue was earned in Europe. This represents the ongoing success and expansion HomeAway has been experiencing since it was founded in 2005.

Continued Friedmann: “HomeAway has experienced an average annual growth rate of 95% since its foundation in 2005, driven by an equal mix of acquisitions and organic growth. However, the holiday rentals market remains a relatively undeveloped sector, with huge potential for further growth. HomeAway’s consolidation of this highly fragmented industry only began in 2005, with the focus on creating one easily accessible marketplace for owners and travellers. Now, our main objective is to increase market share through the introduction of new services that will make holiday rentals as popular as hotels.”

The company represents around 430,000 paid listings in more than 120 countries, almost half of which belong to its European sites, including the two leading sites in the UK: HomeAway Holiday-Rentals and Owners Direct. The holiday rentals industry is one of the most underestimated and under-studied, but fastest-growing sectors in online travel, and HomeAway is the undisputed market leader.

* Source: Comscore. European unique visitors to HomeAway sites increased by 65% yoy (Dec08 – Dec09). Over the same period, European unique visitors across all sites in the broad travel vertical increased by only 11%.

** Source: Toluna Omnibus, fielded the w/c 25th January 2010 to a nationally representative sample of 1,000 UK residents.