HomeAway Traveller Service Fee

[doraine]

We feel our business is down, and vrbo's fees are one of the reasons. It is just going to drive people to sites that don't charge. I mean, vrbo gets $1600 a year for our two rentals! Isn't that enough! They also made a profit of $369 million dollars in 2014! They aren't exactly hurting. I feel that greed is propelling them, and we are going to pay for these charges, with lower numbers of people booking. i don't see the need for any big changes, we were doing well on their site as it was. They are charging guests 8-10%! That is a lot of money. I recommend owners that feel so inclined to complain, there is power in numbers. I have seen a writing and calling campaign make a difference in a business's practices, so it can really work. We are also telling irate guests to complain, also.

[2madames]

A guy in the US is taking a class action against HomeAway/VRBO. Someone has set up a survey to see how P****d off we all are! Please sign up and stand up.

https://www.surveymonkey.com/r/L8TRSY8

[salmoncottage]

This fiasco will without doubt be filtering through to potential guests by this time. The general public are not as sheeplike as the big listing sites would like them to be, they are far more clued up than that these days and most are likely to have realised by now that its far cheaper to try to contact the owners directly (Owners Direct, remember?) and by pass the fees and copious amounts of spam emails they'll receive from these greedy wolves. grrrrr

[tavi]

This fiasco will without doubt be filtering through to potential guests by this time. The general public are not as sheeplike as the big listing sites would like them to be, they are far more clued up than that these days and most are likely to have realised by now that its far cheaper to try to contact the owners directly (Owners Direct, remember?) and by pass the fees and copious amounts of spam emails they'll receive from these greedy wolves. grrrrr

I think you're very right Salmon. No-one has even tapped into what the travellers think or want (apart from HA's supposed research)

Even if they remove the guest booking fees, what may well happen is that the travellers looking for one-off unique properties will become much more educated in how to find them.

The listing sites may then just turn into a booking.com where the agencies with loads of properties will be selling to their own market - no disrespect to agencies intended.

For the guests, it's not only the booking fees, it's the sheer hard work involved in finding what suits you. It's the things like instant booking which frightens some guests, or the difficulty in asking questions before committing yourself, it's things like 24 hours before the booking is confirmed - do you book flights or don't you? Is the property held for you or is it not?

And what about searching as a guest? When I put my own small village (which has 1,400 inhabitants) into Homeaway I get 500 properties located in a 40km stretch of coast. This is clearly not a "best match" for me the guest - I've typed in my village because that's where I want to stay. The reality is that there are around 60/70 properties in my village and nearby. The search results are a deliberate ploy by HA to give the platinum or online booking properties a better exposure regardless of the fact that I, as a traveller, am specifically looking for this small village. It's even listed in the drop-down/predictive - so it's not as if it's an unknown destination.

[GRL]

I think you're very right Salmon. No-one has even tapped into what the travellers think or want (apart from HA's supposed research)

I did a little bit with the survey I did last year - http://eco-gites.blogspot.fr/2015/04/ho ... idays.html

My summary conclusion from the 200 or so surveys filled in by random friends and followers on Social media was:

Summary
From my (probably not at all statistically significant) survey I can conclude that:

There are mixed views on using a book now button
Over 50% of respondents want to deal direct with the owner
Having lists of properties appear either randomly or those with good reviews first are preferred and NO-ONE wanted them according to how much the advertiser had paid
Almost 2/3 of holiday makers do not like paying commission.

[tavi]

Interesting Rosie,

I must do one amongst my own guests and enquirers.

Were your respondents anonymous?

[Essar]

I like a bit of prediction; this is what I think will eventually happen with HA et al:-

1. Traveller Service Fee will only be applicable on next subscription re-newal. The US class-action will probably force this to happen, but won't stop the introduction of the fee overall (it is a business and a US judge ain't going to 8u99er up capitalism).

2. Subscriptions will be reduced to ameliorate owners at next re-newal.

3. On-line booking and payment will be mandatory at next re-newal.

4. Commission model will be re-vamped to match AB - reduction in comission fee to owners. Note the introduction of Traveller Reviews too.

I can also see subscription model being dumped within 3-years. Basically because the market for on-line bookings for holiday rentals will become just like all other accommodation site suppliers - and they will all want to offer meta-search facilities through their gateways - compatibility of booking/payment procedures will be a requirement to enable this to work.

[Ben McNevis]

@Essar: probably about right.

It raises the problem that everybody's subs expires at a different time, so there will come a time when half the properties attract a Service Fee and half don't.

If HA are perturbed at the disquiet now, I think they'll need to go into hiding when it gets so that some properties attract a fee and others don't.

Also, what is going to happen to the phone numbers? Currently owner phone numbers are displayed quite prominently. Surely that isn't going to be the case once there are service fees involved? However, I notice that they are still visible via a click on VRBO, which makes the service fee kind of optional. That makes it a bit of a shambles. Maybe a Brian Shambles.

[tavi]

Brian Shambles

essar I think you're right on all counts - now, one other prediction please....how do you see travellers reacting to these changes?

[Essar]

My prediction will last a maximum of 12-months; in the scheme of things just a blink! Then it will be just a distant memory.
12-months from now the only people who will care will be those who don't have altziemers - and who cares what they care - not HA.

[Essar]

What will traveller think - it's a bit like people who wear wet suits - there are two types; those that wee in them and those that lie - (don't buy a secondhand wet suit or rent one!) - many will just do as they are starting to do now - "I want it now" syndrome and book it because "its's a proper site init?" and those who are reassured by the guff they read. From an owners perpective the whole thing is flawed because owners need to know stuff in advance - lots of things that are important for them as well as the guests - but "book it now danno" doesnee work for most "quality" property owners.

The trick to success for a listing site will be those that are able to offer all the "instant coffee" stuff but will be able to satisfy the conniseurs who want to talk about their needs and requirements nad get th right property at the price that reassures them of thre quality they want.

[FelicityA]

I like a bit of prediction; this is what I think will eventually happen with HA et al:-

1. Traveller Service Fee will only be applicable on next subscription re-newal. The US class-action will probably force this to happen, but won't stop the introduction of the fee overall (it is a business and a US judge ain't going to 8u99er up capitalism).

2. Subscriptions will be reduced to ameliorate owners at next re-newal.

3. On-line booking and payment will be mandatory at next re-newal.

4. Commission model will be re-vamped to match AB - reduction in comission fee to owners. Note the introduction of Traveller Reviews too.

I can also see subscription model being dumped within 3-years. Basically because the market for on-line bookings for holiday rentals will become just like all other accommodation site suppliers - and they will all want to offer meta-search facilities through their gateways - compatibility of booking/payment procedures will be a requirement to enable this to work.

Pretty well spot on, Essar. 1, and 3 have actually been confirmed in a conversation with CS. Not my conversation but someone I was talking to. 2 has been hinted at on the HA boards by the exec operating there but I think linked to performance.

[AngloDutch]

I like a bit of prediction; this is what I think will eventually happen with HA et al:-

1. Traveller Service Fee will only be applicable on next subscription re-newal. The US class-action will probably force this to happen, but won't stop the introduction of the fee overall (it is a business and a US judge ain't going to 8u99er up capitalism).

2. Subscriptions will be reduced to ameliorate owners at next re-newal.

3. On-line booking and payment will be mandatory at next re-newal.

4. Commission model will be re-vamped to match AB - reduction in comission fee to owners. Note the introduction of Traveller Reviews too.

I can also see subscription model being dumped within 3-years. Basically because the market for on-line bookings for holiday rentals will become just like all other accommodation site suppliers - and they will all want to offer meta-search facilities through their gateways - compatibility of booking/payment procedures will be a requirement to enable this to work.

Pretty well spot on, Essar. 1, and 3 have actually been confirmed in a conversation with CS. Not my conversation but someone I was talking to. 2 has been hinted at on the HA boards by the exec operating there but I think linked to performance.

VR customer service now seems to be openly stating that no. 3 will come into effect by the end of the year ( see viewtopic.php?t=25938 )

Just wondering what they are going to do with all the owners who do not comply - cancel their subscriptions and refund them once they decide to impliment, or just wait up to a year from the implimentation of no. 3 until all current subscriptions are ended. Meaning of course up to a year on from there before all 'dissension' will have been firmly stamped out.

[GRL]

Interesting Rosie,

I must do one amongst my own guests and enquirers.

Were your respondents anonymous?

Yes, anonymous. I promoted it through my previous guests and social media followers.

[salmoncottage]

With all thats changing (for the worst 'imo') with the big listing sites we're now considering other options when our listings expires soon. There was a time when you entered into a contract that you knew what you were getting, at least for 12 months. When it comes down to trying to predict when and what the heck they're going to come up with next to screw the owners and guests it's time to move on to another planet and take our chances elsewhere, we can always return if there's no life on Mars after all.
Been looking at some options that might suit our place and area but their stonking subscription fees are eye watering and some prefer to have an exclusivity agreement in place. None so far have insisted on on-line booking, customers service fees or payment after arrival......Back to the search.....