3 HomeAway Numbers You Shouldn't Misshttp://www.fool.com/investing/general/2013/11/14/3-homeaway-numbers-you-shouldnt-miss.aspx Mark Holder
November 14, 2013
Investors often read only the earnings headlines, but a ton of useful information can usually be gleaned from the related conference calls. For those interested in the online travel industry, HomeAway (NASDAQ: AWAY) provided some useful information on last week's earnings call on the developing marketplace for vacation rentals. The sector is starting to cross over into the traditional online travel industry with a pilot test with Expedia (NASDAQ: EXPE), and the company is starting to face tough competition from TripAdvisor (NASDAQ: TRIP).
With the vacation rental market starting to be integrated with the more traditional vacation planning marketplaces, enormous opportunity presents itself to the company that can grab the most listings to become the dominant market leader. One way to grab the most listings is to generate more bookings per listing than competitors, and the Expedia deal promises to help in that area. Three numbers provided in the earnings call shouldn't be missed by investors.
Signing up Expedia
Expedia offers access to several leading travel websites, including Expedia.com, Hotels.com, and Hotwire. The typical customer for these online travel sites doesn't consider using vacation rentals. With Hotels.com offering sites in more than 60 countries, the potential exists to expand this partnership beyond North America. The average HomeAway subscriber only gets 10 bookings per year with an average booking of approximately $1,300. The company has plenty of runway for increasing bookings on existing listings.
Bought 8,000 New Zealand listings
The interesting number is the vast 8,000 listings from a relatively small country. New Zealand ranks considerably smaller than most developed nations with only 4.4 million residents as of 2012. It isn't even 2% of the population of the U.S. that reached 313.9 million in 2012.
Drop in ASPs