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High finance for HomeAway says a lot about travelers
What does all your HomeAway use mean?
Well, for starters, it translates to $216 million raised in one day. HomeAway went public yesterday, and its shares shot up 49 percent to just over $40 each. Now, the vacation rental company is worth $3.2 billion. Trading at 19 times 2010 revenues, HomeAway's valuation is more generous than that of Priceline (8.1X 2010 revenue) and Expedia (2.3X 2010 revenue).
So, what's all this financial stuff have to do with us, the traveling public? To me, it signals behavior. For HomeAway to be valued so richly, investors must see a lot of potential. Look for more people to look at the vacation rental alternative to hotel rooms and other traditional lodging options.