Expedia Inc. plans to start testing the integration of
HomeAway's vacation rental inventory on its core OTA sites in the current
quarter, CEO Dara Khosrowshahi said during the company's earnings call on
Expedia acquired Homeaway at the tail end of 2015.
Currently, Expedia.com has a "vacation rentals"
tab, but Khosrowshahi said that is not a full integration. Instead, it is
simply a link to HomeAway search results.
"What we are talking about is a much more fundamental
kind of integrated experience where someone who comes to an Expedia or
Hotels.com and is searching for hotels, depending on length of stay, depending
on weekday, weekend, etc., they are going to get a complementary mix of hotel
search results and/or vacation rental results based on a number of different
presentations and logic," he said.
The integrated search will likely be piloted during the
fourth quarter, Khosrowshahi said.
Consumers will benefit because the integration will offer
them more inventory, and HomeAway will get a boost in bookings, the CEO
predicted, especially for properties in cities.
"We think it's a win for the consumer and it's a win
for our marketplace, and we're pretty excited about the potential here,"
Also on the call, Khosrowshahi addressed an analyst's
question about an announcement he said took him by surprise this past quarter --
that Expedia would power Marriott International's air-hotel packaging tool,
Vacations by Marriott.
Khosrowshahi said that is an example of Expedia's capability
to be a technology provider to the travel industry.
"We think that there are tons and tons of hotels out
there, hotel chains out there, airlines out there who ... aren't necessarily
able to keep investing and keep experimenting and keep optimizing leading sites
that can accept payments in every single kind of payment plan known on earth,"
he said. "We can do that, and we can essentially extend our platform into
the travel ecosystem, which is something that we're doing."
The Marriott partnership likely will not be the last of its
kind, Khosrowshahi said.
"We're investing in this area," he said. "You're
not done seeing hopefully surprising announcements in the future, because I
think our capabilities are going to get much, much better."
In the third quarter of 2016, Expedia reported a 35%
year-over-year increase in net income, to $374.1 million, and a 33% revenue
increase, to $2.6 billion.