Expedia-owned HomeAway announced recent changes to its revenue model for vacation rental managers. The new pricing and fee structure includes a 25 percent increase in the cost of listing subscriptions along with a new fee assessment for property management companies using “integrated software” systems.
In an email to vacation rental managers, HomeAway informed suppliers it is increasing subscription fees from $399 to $499 per listing. In addition to the pricing increase, for vacation rental managers using “integrated software” platforms, HomeAway will invoice an additional 10 percent fee for direct bookings made that HomeAway can attribute back to similar searches on their websites in a process being referred to as “match-back."
According to multiple vacation rental managers who are using software integrations, HomeAway will examine a vacation rental management company’s direct bookings, “match” email addresses and date searches conducted on HomeAway’s sites “back” to direct bookings, and will invoice property management companies a fee which “will amount to 10% of the pre-tax total booking fee for direct reservations.”
The policy is based on an assumption by HomeAway that any revenue derived from a guest who booked directly with a vacation rental company—and who had previously shopped on a HomeAway site—should be attributed to HomeAway, and HomeAway is entitled to ten percent of that revenue.
Read more here