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IN BRIEF
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Expedia is making a significant shift in its vacation rental strategy by officially retiring the HomeAway brand in the United States. Starting next month, all customers currently using HomeAway will be automatically redirected to Vrbo.com, the company’s primary focus for holiday rentals. This decision is aimed at simplifying Expedia’s brand portfolio and enhancing the overall customer experience in the vacation rental space.
In a significant move to consolidate its presence in the vacation rental market, Expedia Group has announced the retirement of the HomeAway brand in the U.S. starting next month. This strategic decision aims to shift its focus entirely towards the Vrbo brand, which has become a notable leader in vacation rentals, especially among family travelers. The transition underscores Expedia’s commitment to simplification and brand strength in the competitive landscape of holiday rentals.
The Shift to Vrbo
With the impending redirection of all HomeAway users to Vrbo.com, this change indicates a major pivot in Expedia’s branding strategy. Users of the HomeAway website will soon find themselves guided to Vrbo, while those using the HomeAway mobile app will be prompted to download the Vrbo app for a seamless transition. This move comes in the wake of a broader initiative aimed at streamlining the company’s vacation rental offerings.
Background of the HomeAway Brand
HomeAway has been a prominent player in the vacation rental sector since its acquisition by Expedia in 2015. Entering the market earlier, HomeAway carved out a niche but faced increasing competition from Vrbo, which was initially acquired by HomeAway back in 2006. Despite minimal investment since becoming part of the Expedia family, Vrbo has maintained robust brand recognition and loyalty among travelers.
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Reasons Behind the Decision
Expedia’s decision to phase out HomeAway is rooted in a desire for cohesion and operational efficiency. As stated by Peter Kern, Expedia’s vice chairman and chief executive, the brand of Vrbo has consistently outperformed HomeAway, particularly with family-oriented travelers. Simplifying the brand portfolio allows for enhanced focus on marketing, engineering, and customer support dedicated specifically to Vrbo.
Expanding Vrbo’s Reach
The Vrbo brand is not just maintaining its presence in the American market; the company is actively working to introduce Vrbo internationally. Although HomeAway UK will continue to exist in the regional market, the consolidation will allow Expedia to concentrate on building brand loyalty for Vrbo globally. This is a clear indication of the brand’s growing importance in the company’s strategy to dominate the vacation rental space.
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What this means for Travelers
For travelers, this change signals a more streamlined and focused approach to vacation rentals. Jeff Hurst, president of Vrbo, emphasized the brand’s commitment to making family travel easier. The diverse range of accommodations available on Vrbo is designed to suit various family dynamics, which is crucial in today’s travel landscape. With the consolidation, customers can expect more tailored services and improved experiences when booking their next vacation.
Brand Affinity and Future Outlook
The retirement of HomeAway will allow Expedia to fully dedicate resources to enhancing the Vrbo experience, fostering stronger connections with travelers and property owners alike. With the brand’s roots deeper than ever in family travel, the future looks promising as it gears up for new adventures and an expanded lineup of vacation homes.
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Comparison of HomeAway and Vrbo Transition
| Aspect | Details |
| Brand Retirement | HomeAway will no longer operate in the U.S. |
| Redirect | Users will be sent to Vrbo.com starting next month. |
| App Notification | HomeAway app users will be prompted to download Vrbo app. |
| Strategic Focus | Expedia aims to simplify its vacation rental brand portfolio. |
| Brand Performance | Vrbo consistently outperformed HomeAway in family travel. |
| Global Reach | Vrbo operates in 15 countries across multiple regions. |
| Resource Allocation | More resources will be directed to enhance Vrbo’s growth. |
| Market Position | Vrbo is well-recognized in the vacation rental sector. |
| Family Focus | Vrbo offers unique properties suited for family vacations. |
Expedia is making a significant change in the vacation rental market by officially retiring the HomeAway brand in the U.S. and channeling its focus towards Vrbo. This transition, aimed at simplifying its rental brand portfolio, arrives after years of strategic adjustments and reflects the company’s commitment to enhancing customer experience and brand cohesion.
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Why the Change?
The decision to phase out HomeAway, which has been part of Expedia’s offerings since 2015, comes as a part of an overarching strategy initiated even before the pandemic hit. The goal is clear: streamline operations to devote more resources to Vrbo, which has demonstrated its popularity among family travelers.
Redirecting Customers
Starting next month, visitors to the HomeAway website in the U.S. will be redirected to Vrbo.com. Additionally, users of the HomeAway mobile app will receive notifications encouraging them to download the Vrbo app, ensuring a seamless transition for customers.
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Expedia’s Broader Strategy
As the company consolidates its brands, Peter Kern, Vice Chairman and CEO of Expedia, emphasized the long-standing leadership of Vrbo in the vacation rental industry. He noted that Vrbo has consistently outperformed HomeAway, particularly among families seeking suitable vacation accommodations.
Global Reach of Vrbo
Expedia doesn’t plan to stop here. The company aims to expand the Vrbo brand internationally while maintaining a few regional brands such as HomeAway UK, tayz, Bookabach, Abritel, and Fewo-direkt. The consolidating strategy will allow Expedia to allocate more resources towards marketing and customer support for Vrbo, enhancing brand coherence and recognition.
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Why Vrbo is Unique
Focusing on family travel, Vrbo offers an array of vacation rental options that provide spaciousness, privacy, and curated amenities for different family arrangements. The brand’s commitment to accommodating family needs positions it as a leader in the vacation rental space.
HomeAway’s Legacy
Having acquired VRBO in 2006, and later HomeAway in 2015, Expedia’s track record shows that VRBO retained strong brand awareness despite minimal investment over the years. Notably, the rebranding of VRBO to Vrbo in early 2019 allowed it to solidify its identity in the market.
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Looking Ahead
As the phased retirement of the HomeAway brand unfolds, the focus will transition entirely to Vrbo. This change underscores a strategic move to elevate the brand’s visibility and reach, positioning it to cater to the evolving needs of family travel in a competitive landscape. For more insights on these transitions, check out the latest updates from Expedia’s news center.
- Brand Transition: HomeAway will be completely phased out in the U.S., focusing entirely on Vrbo.
- User Experience: Customers will be redirected from HomeAway to Vrbo.com starting next month.
- App Notifications: HomeAway app users will be prompted to download the Vrbo app.
- Strategic Focus: Consolidation aims to enhance marketing and customer support efforts for Vrbo.
- Global Expansion: Vrbo will continue to grow in international markets, while HomeAway UK remains operational.
- Family Travel Focus: Vrbo targets families, emphasizing larger accommodations and amenities.
- Brand Performance: Vrbo has consistently outperformed HomeAway in attracting family travelers.
- Brand History: HomeAway was acquired by Expedia in 2015; prior acquisition of Vrbo occurred in 2006.
Expedia has made a significant shift in its vacation rental strategy by announcing the retirement of the HomeAway brand in the U.S., redirecting customers to the primary holiday rental platform, Vrbo. Starting next month, users visiting HomeAway’s website will be directed to Vrbo.com, and existing HomeAway app users will receive prompts to download the Vrbo app. This decision comes as part of Expedia’s broader strategy to simplify its business structure, which had begun even before the turmoil caused by the COVID-19 pandemic.
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The Rationale Behind the Change
The decision to eliminate the HomeAway brand in the U.S. stems from a plan to create a more focused and streamlined portfolio. By concentrating solely on Vrbo, Expedia aims to enhance its marketing, engineering, and customer support resources. This refocus aligns with the company’s goal to better serve family travelers, a demographic in which Vrbo has consistently outperformed its peers.
Increased Brand Affinity
According to Peter Kern, vice chairman and CEO of Expedia, the consolidation of these brands allows for a stronger commitment to building brand loyalty around Vrbo. This strategy will enable Expedia to concentrate on retaining its dedicated customer base—families and property owners alike—while also enhancing the overall vacation rental experience.
Impact on Customers and Owners
For users who have relied on HomeAway for their vacation rental needs, this transition promises to bring about a more unified experience under the Vrbo platform. Customers can expect upgrades in services and support as Expedia reallocates resources from HomeAway to Vrbo. The change aims to simplify the booking process, making it easier for families to plan their vacations together.
Focus on Family Travel
Family travel can often be complicated, especially when accommodating the diverse needs of relatives and friends. Jeff Hurst, president of Vrbo, highlights that the properties listed on Vrbo are designed with families in mind, offering the space, privacy, and amenities necessary for enjoyable trips. By concentrating all efforts on the Vrbo brand, Expedia looks to enhance the quality of vacations families experience.
Future of the Vrbo Brand
Moving forward, Expedia plans to expand the reach of the Vrbo brand internationally while retaining a few regional brands like HomeAway in the UK. This decision is indicative of the company’s commitment to simplifying its vacation rental offerings, ensuring that customers globally have a clearer understanding of their options. With consistency in brand messaging, Vrbo should see enhanced recognition and trust among its users.
Investment in Technology and Support
The transition from HomeAway to Vrbo also indicates that Expedia intends to ramp up its technology investments. Simplifying the brand structure will enable more focused advancements in engineering and customer support systems, ultimately enhancing the user experience. Such developments could lead to a more intuitive booking platform, reduced customer service response times, and better travel planning tools.
The VRBO Legacy
Since its inception 25 years ago, Vrbo has established itself as a leading name in the vacation rental market. The brand’s historical focus on family-friendly accommodations won it strong loyalty and recognition among users. Although HomeAway has been part of the Expedia Group for nearly a decade, Vrbo’s performance metrics have consistently outshined its sibling brand, thus justifying the transition.
Conclusion on Brand Simplification
The retirement of HomeAway in the U.S. signifies a strategic shift toward simplifying Expedia’s vacation rental offerings. As the spotlight turns to Vrbo, both customers and property owners can expect a more cohesive experience, backed by dedicated resources aimed at elevating family travel. The transition is set to redefine how vacationers approach their planning and enjoy their stays.
Frequently Asked Questions about the HomeAway Brand Transition
What is happening to the HomeAway brand in the U.S.? The HomeAway brand is being retired in the United States, and customers will be redirected to Vrbo.com starting next month.
Why is Expedia retiring the HomeAway brand? This decision is part of Expedia’s strategy to simplify its vacation rental portfolio and will allow more resources to be dedicated to the Vrbo brand.
When will the redirection to Vrbo.com take place? Users of the HomeAway website in the U.S. will be redirected to Vrbo.com next month.
What will happen to HomeAway app users? HomeAway mobile app users will receive notifications prompting them to download the Vrbo app.
Does this change affect HomeAway UK? No, HomeAway UK remains part of Expedia’s regional rental brand portfolio, along with other brands such as tayz and Abritel.
How does this transition benefit customers? By consolidating the focus on Vrbo, Expedia aims to enhance marketing, customer support, and engineering specific to the Vrbo brand, ultimately improving the experience for travelers and property owners alike.
What makes Vrbo a standout option for families? Vrbo is known for its wide range of vacation homes that offer space, privacy, and amenities suited for family travel, making it easier to accommodate various family dynamics.
What is the history of HomeAway and Vrbo? HomeAway acquired Vrbo in 2006, and then Expedia purchased HomeAway in 2015, which has led to a strategic shift towards focusing on the Vrbo brand.
What has been said about Vrbo’s performance compared to HomeAway? Peter Kern, Expedia’s vice chairman and chief executive, highlighted that Vrbo has consistently outperformed HomeAway, especially among family travelers.
