What's New in the Home Sharing Market?

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Nov. 8 (Bloomberg) -- HomeAway CEO Brian Sharples discusses the future of home sharing, Airbnb's legal battles and the company's acquisition strategy with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

This is "bloomberg west." i'm cory johnson.

Consumers use the internet to do everything.

People are opening up their cabins, condos, and beach houses to people planning their trips online.

It offers more than 570,000 listings on its site.

Emily sat down with the ceo and cofounder as part of our sharing economies series, and asked him how business has changed with the rise of peer-to-peer transactions online.

What we see that is different today is that people are starting to read things like their own houses -- rent things like their own houses that they live in, or their own cars.

For us, it is an old business dubbed a new economy business.

Speaking of air b&b, we have talked about how they're one of your competitors.

They run into a lot of legal issues, especially in new york.

Some people alleging that what they are doing is not actually legal.

How have you been following this stuff?

We follow it very closely.

There is a big difference between home away and air b&b. most of air b&b's owners rent beyond the primary home they live in.

For home away, those homes are located in vacation markets.

A lot of the stuff has been sorted out a long time ago.

Air b&b has focused their energy in cities.

For home away, in new york, it is may be .2% of all of our listings worldwide, but for air b&b, it is a significant percentage.

We actually work with them.

We have a group that is an advocacy center that would put together for owners that we do in partnership with those guys.

It is an important issue to watch.

As new york goes, a lot of other cities in the world might go.

How likely do think it is that air b&b might overcome these legal challenges and survive?

It is hard to say.

The high-tech startup world has a lot of historical precedent of people who have come along, created a service that nobody envisioned before.

That then runs afoul of regulations or different tax issues.

As long as the economic base being supported by it is big enough, then ultimately people will figure it out.

In new york, some of this is about tax.

Some of this is also about neighbor issues, where there are people who don't want strangers coming into the apartment next door because if a building where they expected everybody to be a primary home dweller.

That will be the more difficult part.

At the moment, it is still anyone's call how that might turn out.

Earlier you teamed up with expedia to showcase some of your vacation rentals.

How is this partnership going, and how important will it be to your business?

So far we have signed a deal and announced it.

We have been thinking for years that it would be great to distribute some of our inventory on the ota's. we have the largest collection of vacation rentals in the world , almost 800,000. expedia has a tremendous footprint in the travel industry in the u.s. most ota's have been reluctant to put vacation rentals on their site because the bread and butter of their business is the hotel business.

A lot of hotel years view the vacation rental business as competitive.

Expedia will experiment with ways they coexist.

The next three quarters will be seeing if there is a new distribution channel we can use.

A big part of your strategy has been acquiring your competitors, aside from air b&b. how much will that contribute to your growth going forward?

Not as much.

It was not so much about acquiring competitors as it was about acquiring a footprint.

The vacation rental business is a worldwide business.

There are a lot of markets, whether in south america or europe or asia, where it's easier for us to quickly acquire and integrate that with the rest of the company.

We will continue to do that going forward, but most of what you will see is us making acquisitions in geographies where we don't exist today.

That was brian sharples with emily chang.

Revenue jumping 23% from last

This text has been automatically generated. It may not be 100% accurate.


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