posted by orlandovacationhome on Mar 15
The recent Super Bowl ads sponsored by the HomeAway® vacation site generated record internet traffic according to the company. In a company press release, HomeAway® announced that visitors to the company’s website jumped five-fold from daily averages after the Super Bowl ads debuted. The celebrity advertisements feature onetime comedy superstars Chevy Chase and Beverly D’Angelo (aka Griswolds) from their 1980’s “National Lampoon” Vacation movie. The catchy ads certainly help bring a spotlight to vacation rentals as a major player in the lodging industry.
Spending millions on splashy ads provides a spark to a national mainstream interest in vacation rentals. However, longer term, it will be the quality of the underlying experience with the individual vacation homes that determines success in the longer term. This is true regardless of what destination is being considered. Ads bring in new customers, but referrals from satisfied customers provide a stream of home renters for years to come.
The problem with the presentation of vacation rentals is that it is very difficult for the average consumer to evaluate the value proposition (i.e quality and expectations) posed by individual vacation home communities. This is even more pronounced for “vacation rentals by owner” homes as opposed to rental homes managed by a professional management company. Additional resort reviews are needed to help consumers.
This site provides reviews of over 80 vacation home communities designed to assist prospective Orlando vacation home renters. The opinion reviews posted on the main page are designed to provide the prospective consumer with details related to resort location, amenities and community information.
Regardless of whether the consumer is interested in a HomeAway® Orlando Florida home or one advertised by a management company, professional reviews provide additional insight and reduce perceived risk for anyone wishing to book a vacation rental.
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posted by orlandovacationhome on Nov 10
Eyebrows were raised earlier this week when HomeAway, an Austin, Texas based vacation tech company, was able to raise $250 million through venture capital sources for what CEO Brian Sharples termed opportunities for the company to pay down debt, insiders to cash in a little equity, and for the vacation home rental company to perhaps pursue additional vacation home acquisitions. This comes on top of a $209 funding several months ago.
HomeAway owns the homeaway.com, vrbo.com, vacationrentals.com, a1vacations.com, cyberrentals.com and ownersdirect.co.uk websites. They are the proverbial 900 pound gorilla in the vacation home rental and vacation home management niche of hospitality lodging. They maintain some of the best vacation villa rental inventory in the Orlando area within several luxurious vacation home communities with a plethora of pools and other amenities. Inside sources indicate that roughly 30% of its revenues come from overseas which makes its domains a prime fit for Orlando tourism and travel. These brands certainly have a strong presence in the Orlando, Disney area and Kissimmee vacation home rental markets.
The ability for the firm to acquire capital in such a rough market does indicate that the clout and respect for the vacation home management and that the vacation home rental business model is growing. Strong consistent growth and a relatively stable cash flow model has now shown to be a valuation premium in this difficult market. My guess is that the funding will in time be used to:
1. Help HomeAway and its online brands to strengthen their market positioning in Orlando and other vacation home rental markets in the Central Florida area and elsewhere
2. Make additional prudent acquisions as the dust settles during this recessionary period. This additional funding might allow the company to expand its Orlando footprint in more “drive to” vs. “fly to” destinations that may come back quicker as a result of lower gas pricing for consumers.
3. Grow its presence in the vacation home managment area where cash flows tend to be stable and where its brand presence will give the company clear competitive advantage and leverage with homeowners
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