Stayz changes business model to compete with Airbnb
Australian online short-term rental group, Stayz, announced yesterday that it will lower commission rates paid by property owners, introduce a booking fee for travellers, and add more urban accommodation and instant booking capability as it looks to better compete against Airbnb. Stayz is owned by US-based HomeAway which was yesterday purchased by Expedia for $3.9bn, and HomeAway CEO, Brian Sharples, said Stayz’s decision to lower commission rates paid by property owners from the current 10%, instead charging travellers  6%, would encourage more listings on the group's websites.

Online holiday rental group Stayz could lower commission rates paid by property owners, introduce a booking fee for travellers, and add more urban accommodation and online booking capability to become more competitive against sharing-giant Airbnb.

Stayz's US-based owner, HomeAway, announced the changes as it agreed to a $US3.9 billion ($5.4 billion) cash and scrip takeover by Expedia. HomeAway purchased Stayz from Fairfax Media for $220 million in 2013. At the time the Australian business accounted for about 7 per cent of the US company's annual revenue, although that is no longer broken out.

Stayz has traditionally focused on the holiday home market rather than urban accommodation. Credit: Louie Douvis

HomeAway said its new strategy would be rolled out in the US from the second quarter of next year. However, HomeAway regional director Australia and New Zealand Anton Stanish said there were no immediate plans to change the commission model in the Australian market but it might do so over time.

Airbnb is proving popular with property owners because it is reliant on booking fees of 6 to 12 per cent paid by travellers for most of its revenue and hosts only pay a 3 per cent commission to cover payment processing costs.