TripAdvisor acquires HolidayLettings.co.uk

Thursday, 24th June 2010

Holiday review site TripAdvisor has announced its acquisition of the UK's largest independent holiday rentals website Holidaylettings.co.uk. Holiday Lettings's majority shareholder, Rightmove (a UK property portal), has confirmed they have relinquished their stake in the company, although further details of the deal remain undisclosed.

TripAdvisor moved into the vacation rentals sphere back in 2008 with their acquisition of US website FlipKey and the deal with Holiday Lettings sees them making a major push across the pond into the European rentals market.

The holiday rentals industry is set to gain momentum over the coming years and moves by very big players into the market show what a large business this has become. No longer seen as a cottage industry (excuse the pun), the wider travel market is sitting up and noticing the sector and it's role as an alternative to the hotels industry.

The implication for property owners who advertise with these websites remains unclear:

On the up side, firms like Holidaylettings.co.uk and the enormous US company HomeAway have used their size to invest vast sums into marketing holiday homes as an alternative to hotels and package holidays.

On the downside their advertising rates have risen dramatically. Rates for single advertisements on these sites can typically cost more than £300 per year. This squeezes the budgets of property owners and prevents many from spreading their nets very far, for example by advertising on multiple listing sites.

Their rates are great value... when they deliver a lot of business. But if adverts under perform it puts huge pressure on owners who have all their eggs in one basket. Caveat emptor.

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