Expedia to acquire Austin-based HomeAway

With websites such as HomeAway gaining popularity, issues associated with short-term rental properties are coming to the forefront.

With websites such as HomeAway gaining popularity, issues associated with short-term rental properties are coming to the forefront.

HomeAway Domain In October 2014, HomeAway opened its fourth Austin office at The Domain.[/caption]

Travel company Expedia Inc. announced Nov. 4 it will acquire Austin-based HomeAway Inc. and all its brands for $3.9 billion.

HomeAway, an online marketplace for vacation rentals, has four offices in Austin, including its downtown corporate headquarters at 1011 W. Fifth St., Ste. 300, and its new Domain office, which opened in October 2014 at 11800 Domain Drive.

Representatives from HomeAway declined to comment further on the deal and how it might affect the company’s presence and employees in Austin, but leaders from both companies hosted a conference call Nov. 4 with investors.

“We anticipate HomeAway will continue to be run relatively autonomously out of Austin,” said Mark Okerstrom, Expedia chief financial officer and executive vice president of operations, during the call.

HomeAway CEO Brian Sharples said he is excited about the deal with Expedia because the companies are similar, including that both own several brands and face similar challenges.

“We think we will derive significant benefits in order to make our products even better than they are today,” Sharples said during the call.

Although both boards of directors for the companies approved the acquisition, the deal will not officially be final until the first quarter of 2016. Expedia will pay HomeAway $1 billion in cash, and the remainder of the cost will come from Expedia stock.

Expedia CEO Dara Khosrowshahi said in the call that the addition of HomeAway’s inventory will allow the two companies together to have complementary coverage of the industry.

“We have long had our eyes on the fast growing ~$100 billion alternative accommodations space and have been building on our partnership with HomeAway, a global leader in vacation rentals, for two years,” he said in a news release. “Bringing HomeAway into the Expedia Inc. family and adding its leading brands to our portfolio of the most trusted brands in travel is a logical next step.”

Additionally, Sharples also announced HomeAway plans to implement a traveler’s fee for online bookings in the first half of 2016. The fee likely will be between 8 and 10 percent below those of competitors, he said. Other changes will keep both travelers and suppliers incentivized to use the company, such as lower commission rates for paper-booking suppliers, he said.

“I expect the business model changes to be a huge win for suppliers and travelers,” he said.

For more information visit http://ir.expediainc.com or https://investors.homeaway.com.


The city of Austin will work with Capital Metro to look into public financing options to help fund new MetroRail stations at the new Austin FC soccer stadium at McKalla Place and at the Broadmoor Campus in North Austin. (Amy Denney/Community Impact Newspaper)
City to work with Capital Metro on financing new Broadmoor and McKalla Place rail stations as development boom looms

Austin City Council expects the new Austin FC stadium and massive mixed-use development planned for McKalla Place and the Broadmoor Campus to result in heightened demand for public transit.

The Atlas 14 rainfall study found Austin to be at a much higher flood risk than previously understood.
Acknowledging expanded risk, Austin moves to prohibit additional density in city’s flood-prone areas

A recent federal flood risk study found Austin's flood risk to be significantly higher than previously understood.

The city of Austin authorized the purchase of a Rodeway Inn at 2711 S. I-35 on Nov. 14. The city plans to convert the property into a homeless shelter. (Olivia Aldridge/Community Impact Newspaper)
City Council green lights $8 million Rodeway Inn plan for homeless shelter transition, vows to address crime in the area

South Austin neighbors raised concerns that criminal activity in the area will put homeless individuals who enter the shelter at risk.

Lady Bird Lake at Congress Avenue in Austin. Since late July, parts of the lake have been off limits due to high concentrations of toxic "blue-green" algae. (Courtesy Miguel Gutierrez Jr./The Texas Tribune)
Toxic algae blooms are becoming more common, scientists say

Months have passed, but the capital city still has signs up warning of ongoing dangerous conditions in Lady Bird Lake.

Community members examine updated zoning maps at land development code town hall in October.
Land development code rewrite heads to City Council for final approval, marking home stretch of nearly 7-year process

Austin's long-awaited land development code rewrite is heading to City Council for final approval.

Crews work on updating a section of I-35 in Central Texas (Courtesy TxDOT)
Central Texas transportation agencies investing millions in I-35 for new lanes, intersection improvements aimed at aiding mobility

About 20 miles of I-35 through Central Texas will see an infusion of $400 million in state and federal funding to add one to two additional lanes in an effort to improve mobility.

(Iain Oldman/Community Impact Newspaper)
Round Rock, Austin locations of Catch Air to become PlayMazing Indoor Play & Party

Both Catch Air Round Rock, located at 1401 South IH-35, Ste. 130, and Catch Air Austin, located at 13450 Hwy. 183 Ste. 107, will be renamed PlayMazing Austin and PlayMazing Round Rock on Nov. 15.

St. David's HealthCare is the founding partner with Two Oak Ventures, the ownership group of Austin FC. (Courtesy Austin FC, STG Design)
Austin FC to locate $45M training facility at mixed-use Parmer Innovation Center in Northeast Austin

Austin FC announces $45 million training facility to be located in Northeast Austin at new development

Delia Garza speaks to her constituents at a town hall meeting in 2017.
Austin Mayor Pro Tem Delia Garza says she will not seek re-election as Travis County attorney rumors heat up

Austin's mayor pro tem will not seek reelection to her Southeast Austin district seat in 2020.

Deece Eckstein at the Nov. 12 Travis County Commissioners Court meeting
Travis County intergovernmental relations officer announces retirement, triggers "aggressive" hiring schedule

Deece Eckstein, Travis County's inaugural intergovernmental relations officer, will retire at the end of the year.

Austin City Council members answer questions at a town hall on homelessness
Austin no longer pursuing homeless shelter off Ben White with pivot to hotel purchase

Austin will no longer pursue the controversial purchase of a South Austin tract to use for a new homeless shelter.

Back to top