eye for travel 2014 homeaway p2p revolution: myths and ... · homeaway confidential© 2012...

HomeAway Confidential© 2012 HomeAway. All rights reserved.

Eye for Travel 2014 – HomeAway

P2P revolution: myths and realities

Marcello Mastioni, Sr. Dir. EMEA Ops

May 23 2014


HomeAway

2

HomeAway, Inc. based in Austin,

Texas, is the world's leading online

marketplace for the vacation rental

industry.

Through HomeAway, owners and

property managers offer an extensive

selection of vacation homes that

provide travelers with memorable

experiences and benefits, including

more room to relax and added

privacy, for less than the cost of

traditional hotel accommodations.

The company also makes it easy for

vacation rental owners and property

managers to advertise their properties

and manage bookings online.


How big?

3 Image source: www.thailander.com

over 950k listings, of which about

1/4th are e-commerce enabled

2.7M rooms,more than the world's

top 3 hotel chains

140M room nights per year

16M monthly unique visitors


Our brands

4

HomeAway Confidential© 2014 HomeAway. All rights reserved

http://www.triphomes.com/

http://www.aluguetemporada.com.br/


Today

5

Learn how the Peer to Peer market is revolutionizing the travel

industry and whether traditional travel brands can keep up

• Explore what the popularity of P2P brands tells you about

your ever changing consumer

• Understand how this market creates a sense of trust and

community and if traditional travel brands can capitalise on

this

• Discover what the new distribution eco-system will look like

with the growth of the P2P marketk

• Gain an insight into the legal issues which are affecting this

market and what the future holds


Contents

6

Changing

consumers


Is there a new paradigm for “good”?

7

OLD NEW


Is Coca-Cola green?

8 Picture source: http://thegreenwashingblog.com/


It’s about families and groups

9


Let’s stay together

10

Spending time withmy family/friends isthe most importantpart of my vacation

I use my vacationsto get away from my

usual routine andstresses

I need vacations tofind balance andrestore myself

Vacations are aboutindulging myself

I need vacationsfilled with adventure

and activity

It isn't a vacationunless I have

learned somethingnew

Never Used Occasional Users Regular Users

45% 40% 25% 15% 5% 5%

VR status

Spending time with family/friends is most often cited motivation for taking a vacation

% “strongly agree”

Source: HA research, 2012


Amenities and space, and yes, authentic and local

11


Experiential vs. … practical

12

US UK France Germany Italy

Where to go 1st 1st 1st 1st 1st

Other decisions (5) How much to spend, Where to stay, When to travel,

How to get there, Who goes

What to do 7th 7th 7th 7th 7th

Order in which you made/will make each decision for long holiday trips

Source: HA research, 2013


Online bookable: yes “but”

13


Changing consumers

14 Source: http://premisepunchtag.wordpress.com/


Contents

15

Creating

trust


An old job

16

Non rented 13.5MLN

Rented 6.1MLN

HomeAway (952K)

Source: November 2010 Radius Global Market Research survey titled “Market Sizing Study”

US and EU vacation rentals inventory


Do you trust your neighbours?

17

Bla Bla Car 2013 “research on trust factors”

“Most modern social networks use friend of a friend as a boundary of private

information. The underlying, but not necessarily correct, assumption is that

friendships are transitive.” Wanita Sherchan, Surya Nepal, Cecile Paris. A Survey of Trust in Social Networks. ACM Computing Survey 45(4): 47 (2013)

2.2

3.5 3.6 3.8

4.7

Strangers Neighbours Facebookcontacts

Colleagues Friends &family

HomeAway Confidential© 2012 HomeAway. All rights reserved. 18

Accumulation

Source: Wanita Sherchan, Surya Nepal, Cecile Paris. A Survey of Trust in Social Networks. ACM Computing Survey 45(4): 47

(2013); Wave image source: http://www.fbookcover.com/

HomeAway Confidential© 2012 HomeAway. All rights reserved. 19

Education

Left hand side chart source: Leon Haland as seen in http://creativityandinnovation.blogspot.ch/, 2011

Right hand side chart source: Pew Research Center, 2013

0 250 500 750 1000 1250 1500 1750 2000 2250

50

40

30

20

10

0

Days to achieve 50M users Cross-over use

Of those who

consume news on …

… percent who also

get news on

71%

60%

57%

64%

21%

27%

47%

25%

19%

28%

22%

23%

88 1046 1096 1325 2354

M users

Days


Fly wheel

20 Source: GPBULLHOUND, “SOCIAL TRAVEL – THE HUMAN TOUCH”, Feb 2012


The four principles of collaborative consumption

21

Critical Mass

Belief In “The Commons”

Idling Capacity

Trust Between Strangers

Christina Glover, What’s Mine is Yours: The Rise and Fall of

Collaborative Consumption, 2011

“This is what the internet

was made for, an instant

platform sharing excess

capacity among many

people.”

Robin

Chase,

founder of

Zipcar

Self-Managed Peer-

Policed Systems


Managing and building trust

22

Trust Facets

Calculative E.g. based on economic model

Relational E.g. employee relationships

Emotional Outcome of an interaction

Cognitive E.g. positive referrals

Institutional Environment that penalizes misbehaviors

Dispositional Generalized expectations that develop over time

Trust Properties

Context specific Would you trust your mechanic to be your dentist?

Non-transitive, but propagative and composable

Alice trusts Bob and Charlie. Charlie and Bob trusts John

Dynamic and self-reinforcing Members act positively with other members whom they trust.

Subjective, asymmetric and event sensitive

Trust take a long time to build, but a single high-impact event may destroy it completely

Source: Wanita Sherchan, Surya Nepal, Cecile Paris. A Survey of Trust in Social Networks. ACM Computing Survey 45(4): 47

(2013); Wave image source: http://www.fbookcover.com/

ROI transparency

Inspirational language and images

Urgency messaging?

Nurture fans …

… and crack down on NFMPs

Personalization

T&S, customer service


Creating trust

23 Source: www.webdesignerdepot.com


Contents

24

Shaping the

ecosystem


The traveller journey …

25

Dream

Book

Pre-Stay Stay


… is a social journey

26

Planning

Business Trip Planning

Discovery

Live recommendations

Collaborative consumption / group buying

Source: GPBULLHOUND, “SOCIAL TRAVEL – THE HUMAN TOUCH”, Feb 2012


SoLoMo

27 Source: http://siliconangle.com/blog/2012/06/18/

Local Mobile Social


Mobile

28 Source: PhoCusWright Euro Consumer Trends @ ITB Berlin, 2014


Mobile

29

Siri Samsung Tablet of the Future

Source: PhoCusWright’s TRAVEL INNOVATION & TECHNOLOGY TRENDS: 2012 & Beyond, Special Report for World Travel

Market, by Bob Offutt & Cathy Schetzina


Glad to have you

30 Source: PhoCusWright’s TRAVEL INNOVATION & TECHNOLOGY TRENDS: 2012 & Beyond, Special Report for World Travel



Meta

31 Source: DerbySoft presentation @ ITB Berlin 2014, from PhoCusWright data

Percent of online travel shoppers who typically use metasearch sites, 2013


Big Data

32

Travel distribution is in the midst of significant

changes. Technology – in many cases using

semantic tools – is countering some of the value

GDSs provide by aggregating content. In the

meantime, GDSs are fighting back by providing

tools to easily access nontraditional content.

These phenomena are happening against the

backdrop of the explosion of social media in travel

marketing. The growth of online travel planning and

booking will be fueled by the ready availability of

low-cost devices for those without access to the

Internet. For computer-challenged users, new

interfaces will make machines more user-friendly.

Sweeping changes in the distribution channel, keen

competition for customers, and the effect of

online travel reviews mean travel companies

must have complete, accurate and timely

information about their business operations and

customers’ perceptions. At the same time, the

mobile web will migrate from company-specific apps

to apps that provide value across multiple suppliers.

Perhaps the most significant opportunity is the

possibilities that big data, cloud computing and

logical data warehouses bring to the table. And

finally, we all want a better trip experience. With

new technology, it actually might happen.

Source: PhoCusWright’s TRAVEL INNOVATION & TECHNOLOGY TRENDS: 2012 & Beyond, Special Report for World Travel



Manufacturing authenticity?

33

Local opportunities Market structure

Left hand side chart source: Tamara Rátz, Innovation and Creativity in Niche Tourism Development in Hungary, 2013

Right hand side chart source: When They Get There & Why They Go, by Douglas Quinby, PhoCusWright @ ITB Berlin 2014


Shaping the ecosystem

34 Source: http://www.seo.com/


Contents

35

Win win

regulation


Win win regulation

36 Source: http://cbldf.org/

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