HomeAway
| File:HomeAway Logo.svg | |
| Company type | Subsidiary |
|---|---|
| Industry | Travel |
| Founded | February 2005 |
| Founders | Brian Sharples Carl Shepherd |
| Fate | acquired, rebranded to VRBO |
| Headquarters | , |
Key people | John Kim (President) Trent York (CFO) Jeff Hurst (CCO) Tina Weyand (CPO) John J. Ostlund (CTO) Steve Davis (CIO) Jeff Mosler (CSO) |
| Services | Vacation rentals |
| Revenue | $446.8 million (2014) |
| Parent | Expedia Group |
HomeAway was a prominent online marketplace for vacation rentals, operating through 50 websites available in 23 different languages, and featuring a wide variety of accommodations such as cabins, condos, villas, and farmhouses.
The company was established in February 2005 with its headquarters located in Austin, Texas. It went public in 2011 before being acquired by Expedia Group in December 2015 for $3.9 billion in a combination of cash and stock. By 2020, the HomeAway brand merged with VRBO under the unified Vrbo name.
History
Initially founded in 2004 as CEH Holdings, the company grew through acquiring several vacation rental platforms and launched HomeAway.com in June 2006 to create a centralized marketplace.
In 2009, HomeAway set up its global headquarters in Austin, achieving LEED Gold certification for Commercial Interior Design—marking the first mixed-use project in the city to earn this distinction. To accommodate its expanding operations, the company relocated to a larger high-rise office in Austin in 2017.
HomeAway secured $250 million in funding from venture capital investors including Austin Ventures, Institutional Venture Partners, Redpoint Ventures, Technology Crossover Ventures, and Trident Capital.
In 2016, the company encountered a federal lawsuit concerning newly implemented service fees ranging between 4% and 10%. Plaintiffs contended that these fees materially changed HomeAway’s business approach and increased expenses for users.
Acquisitions
HomeAway pursued an acquisition strategy that broadened its international reach and diversified its vacation rental offerings:
| Date | Acquisition | Location | Notes |
|---|---|---|---|
| 2005 | CyberRentals.com | US | |
| 2005 | GreatRentals.com | US | |
| 2005 | A1Vacations.com | US | |
| 2005 | Rent101.com | US | Later rebranded as TripHomes.com |
| 2005 | Holiday-Rentals.com | UK | |
| 2005 | FeWo-direkt.de | Germany | |
| 2006 | Vrbo | US | Established in 1995; acquisition strengthened HomeAway’s short-term rental inventory. |
| 2007 | Abritel.fr | France | |
| 2007 | VacationRentals.com | US | |
| 2007 | OwnersDirect.co.uk | UK | |
| 2009 | Homelidays.com | France | |
| 2010 | BedandBreakfast.com | US | |
| 2010 | AlugueTemporada.com.br | Brazil | |
| 2010 | Instant Software | US | |
| 2010 | Escapia | US | |
| 2011 | RealHolidays.com.au | Australia | |
| 2012 | Toprural.com | Spain | |
| 2013 | Travelmob | Singapore | A social networking platform for accommodations that expanded HomeAway’s presence in Asia-Pacific; fully integrated by 2015. |
| 2013 | Stayz Australia | Australia | |
| 2013 | Bookabach.co.nz | New Zealand | |
| 2014 | Glad to Have You, Inc. | US | |
| 2015 | Dwellable | US | Founded in Seattle (2012) with over 300,000 listings; acquired for $18 million to enhance mobile capabilities. |
This series of acquisitions significantly increased HomeAway’s market penetration across vital regions while enriching its service offerings and supporting worldwide operations.
Business model
Prior to 2013, HomeAway's revenue strategy primarily depended on homeowners paying annual subscription charges, averaging around $442, to list their vacation properties on its platforms. In addition to subscriptions, property owners and managers had the option to purchase promoted listings that enhanced visibility in search results. Subsequently, the company introduced a performance-based pricing alternative alongside the existing subscription plan.
In 2016, HomeAway began charging travelers a service fee for reservations made through its websites, which ranged between six and twelve percent of the total booking cost, excluding taxes and refundable charges. This fee decreases as the reservation amount increases. According to the company, this service fee funds continuous customer service availability, improved website functionalities, and broader international marketing efforts. At the same time, HomeAway introduced its Book with Confidence Guarantee for reservations completed directly on its platform.
That year also marked the end of HomeAway’s tiered subscription system for property owners and managers; it shifted to offering either a standard annual subscription or a pay-per-booking alternative. Under this pay-per-booking scheme, owners are charged five to ten percent of the total rental fee per confirmed booking.
Furthermore, HomeAway created a Professional Referral Network comprising 40 affiliated companies—including Evolve Vacation Rental Network and Southern California Vacation Rentals—to support owners with managing listings, handling guest communications, and processing reservations.
Financing
In November 2006, HomeAway raised $160 million in funding aimed at accelerating its international growth and acquiring Vrbo.com (Vacation Rentals by Owner). On November 11, 2008, it secured an additional $250 million in equity financing led by Technology Crossover Ventures (TCV), with participation from existing investors such as Austin Ventures, Institutional Venture Partners (IVP), and Redpoint Ventures. By 2010, The Wall Street Journal had recognized HomeAway among the top ten venture-backed companies, citing its robust financial performance and promising growth trajectory.
Legal status
HomeAway has encountered regulatory scrutiny concerning local lodging regulations, similar to its competitor Airbnb. In May 2017, both companies resolved a lawsuit with San Francisco by agreeing to assist in registering all host listings with the city, reflecting their commitment to regulatory compliance within their operational frameworks.