U.S. vacation-rental marketplace,
), has expanded its distribution partnership with Interhome AG to
add new vacation rental properties to its network through its
Based in Switzerland, Interhome is one of Europe's premier
providers of holiday homes and apartments worldwide. The company
has 15 regional subsidiaries and its operations mainly focus on
France, Italy, Spain and Switzerland.
Per the agreement, the new Interhome properties will appear
initially on HomeAway's U.S. sites - HomeAway.com and VRBO.com -
and European sites - FeWo-direkt and HomeAway.co.uk. The
properties will be made available on additional sites around the
world, like Abritel.fr in France, as HomeAway rolls out its
HomeAway's pay-per-booking product, introduced in mid-October,
allows property owners and managers to list their property on
HomeAway.com without paying any upfront fees. They only have to
pay 10% of the booking amount once the property is booked.
The deal is said to be the largest distribution partnership
enabled by HomeAway's pay-per-booking product. Management expects
the new pay-per-booking platform to expand its online marketplace
and accelerate listings growth in the near term.
We believe the deal will help HomeAway to better position
itself in the competitive vacation-rental industry. The alliance
will boost the company's already large vacation rental portfolio
and further strengthen its presence in Europe, thereby increasing
its overall market share.
HomeAway has been trying to improve its vacation rental
portfolio by entering into few important alliances. Last month,
the company signed an agreement with
) to expand online travel accommodation options by featuring
HomeAway vacation rental properties on Expedia.
Moreover, HomeAway is investing in international markets
because of the higher growth potential in these markets. Earlier
in July, the company acquired Asian vacation rental start-up -
Travelmob - and made an investment in China vacation rental
player - Tujia.
We believe these strategic partnerships and acquisitions will
help HomeAway to grow in the future.
HomeAway, the world's leading online travel leader, reported a
strong third quarter, driven by growth in the overall online
travel booking industry. The company reported revenues of $90.1
million, up 4.0% sequentially, 23.3% from the year-ago period and
above management's expected range of $88.6 million-$89.6 million
driven by strong performance in both listing and other
Currently, HomeAway has a Zacks Rank #3 (Hold). Other stocks
that look attractive at the moment are
SeaWorld Entertainment, Inc.
Regal Entertainment Group
(RGC). All these stocks carry a Zacks Rank #2 (Buy).
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