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HomeAway launches pay-per-booking model

US online vacation rental marketplace HomeAway Inc (NASDAQ: AWAY) said it has launched a pay-per-booking model and its new Professional Referral Network in an effort to eliminate some of the barriers to entry for vacation rental home owners and professional managers.

Pay-per-booking provides owners and property managers on the opportunity to pay 10% of the booking each time the home is booked, with no up-front subscription fee.

In conjunction with this pay-for-performance model, HomeAway also debuts the Professional Referral Network, which the firm said is a first-of-its kind directory connecting new owners to professional property management services during the sign-up process.

The new pay-per-booking model provides an alternative to the company´s existing subscription offering and is aimed at owners new to or renting in general, giving them an opportunity to test the performance of the site for no up-front cost.

In addition, pay-per-booking is targeted at those renting properties for six weeks or less, including owners in seasonal destinations or cities that host popular events such as the Super Bowl, South by Southwest Music Festival or the World Cup.

HomeAway believes this service will also benefit large property management companies that have historically advertised only a subset of their properties due to cash constraints that preclude them from paying subscription fees in advance for all of their properties.

The firm online marketplace of vacation rentals, with sites representing over 775,000 paid listings of vacation rental homes in 171 countries.

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