Hands On With HomeAway

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What struck me most about our stay at a South Dakota campground cabin was the checkout flyer. On it were links to several sites where I could go and "rate" my stay. Most of them were owned by HomeAway (NAS: AWAY) .

Seeing that made me smile. A small, family owned business had turned to a large and fast-growing aggregator to get its name in front of potential travelers. More than irony was at work here. HomeAway's strategy -- acquire the major vacation rental listing sites to create a booking empire -- was paying off.

To be fair, one piece of paper doesn't make for a competitive edge. But the numbers are pretty startling. FlipKey, operated by Expedia's (NAS: EXPE) TripAdvisor unit, claims "over 100,000" listings, while HomeAway had more than five times that at the time of its S-1 filing, months before its June IPO.

It's still too early to know precisely how disruptive HomeAway could be to the likes of Marriott (NYS: MAR) and Hilton, which both operate large timeshare businesses. All I can say is that our seven-hour drive to, and stay in, the Black Hills went well enough that I find myself rethinking accommodations in two ways:

  1. My first stop for family lodging is now HomeAway. Spacious rentals with full kitchen facilities offer more than a hotel room ever could. The one catch? A pool. Our young kids love the water enough to limit my choices.
  2. For conferences and other types of research trips, I'm seriously considering AirBnB, which offers cheap space for couch crashers who don't need much more than a place to sleep while on the road for business.

I've learned to pay attention when my behavior shifts in this way. Often, it's an early sign of disruption -- like when I forgot to how to use my DVD player recently. Streaming had become second nature for me, just as it has for millions of others. Space-sharing looks like a similarly explosive change.

Do you agree? Disagree? Weigh in using the comments box below. And if you're in the mood for more stock ideas, try this free video. You'll walk away with a better understanding of a new computing revolution that's reshaping industries, as well as a winning pick from our Motley Fool Rule Breakers scorecard. Click here to start watching -- it's 100% free.

At the time this article was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He didn't own shares in any of the companies mentioned at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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