Holiday Rental Industry Update and Trends. Anton Stanish General Manager, The Stayz Group

Holiday Rental Industry Update and Trends Anton Stanish General Manager, The Stayz Group

Agenda 1. Welcome and background 2. The Australian holiday rental market 3. Trends in Australia and overseas 4. Future travel trends 5. The Stayz Group plans 2

Agenda 1. Welcome and background 2. The Australian holiday rental market 3. Trends in Australia and overseas 4. Future travel trends 5. The Stayz Group plans 3

Welcome & Introductions Alex Paterson, Customer Service Niamh Collins and Carmel Kent, Product Management Justin Butterworth, Business Development Craig Davis and Woody Wood, Technology Ali Cassim and Laura Borowski, Marketing Many of the rest of our team So... where are you from? 4

You are sitting with a broad range of people today... 60.4% By role >210 participants By length of time with Stayz 36.0% 27.6% 20.8% 19.2% 20.8% 7.5% 4.5% 3.2% Single property Multiple properties Real estate agent Other <1 y 1-2 yrs 2-5 yrs 5-10 yrs >10 yrs Source: Stayz 5

...with a range of property types 61% By type of property >210 participants 31% 11% 7% 12% House Apartment Serviced Apartment B&B Other Source: Stayz 6

Objectives of the Summit 1 To enhance and grow your holiday rental business 2 To allow you to interact with industry experts, the Stayz Team, and each other! 3 Inaugural Stayz Group Holiday Rental Awards 7

The Stayz Group has three distinct brand offerings $$ Professional/exec/metro Families/leisure/regional $ 8

The Stayz Group community 100 * Holiday options * FY12 Stayz Group Internet stats (accepted booking nights does not include bookings made with subscription clients) 9

What sets the Stayz Group apart? 4,200,000 ** holidaymakers browse each month 30,000+ Facebook followers 800,000+ Newsletter subscribers Source: *Nielsen market intelligence August 2011; **Stayz internal statistics FY12; ^Stayz internal statistics 2011 10

Celebrating 10 years of Stayz.com.au Note: Stayz figures (does not include Rent-a-Home and Take-a-Break) Source: *Stayz internal Statistics. Comparison between 2006 to 2012; **Nielsen Online Ratings / Jan 2012, Travel; *** Stayz Internal Statistics, February 2012 Database; ^ Consumer Research 2011; ^^ Google Analytics, February 2012 11

Agenda 1. Welcome and background 2. The Australian holiday rental market 3. Trends in Australia and overseas 4. Future travel trends 5. The Stayz Group plans 12

Tourism accommodation is a large industry, but with slow growth Australian tourism market (Mill. Visitor nights in HMGSA *, FY2000-FY2012e, Australia) 100 99 99 +1.1% 102 102 106 106 109 109 97-11% +0.5% 98 97 98 Three quarters of Australian visitor nights are domestic 78 77 77 81 80 81 78 80 81 22 22 22 21 23 25 28 29 28 2000 2001 2002 2003 2004 2005 2006 2007 2008 Domestic Inbound 72 74 73 74 25 2009 Financial crash 24 2010 25 24 2011 2012e Long term trend of tourist accommodation is flat Financial crisis set a new normal in the Australian market *Hotels, Motels, Guesthouses, and Serviced Apartments Source: Stayz analysis based on TRA data 13

Holiday Rentals category is small but growing strongly Stayz group growth (Million Booking nights, FY2007-FY2012) 0.7 0.9 Avg. 19% 1.1 1.2 No stats available for Holiday Rentals category as a whole 1.2% of Australian booking nights are processed through Stayz RAH and TAB currently account for over 20% of Stayz Group booking nights 2009 2010 2011 2012 Stayz Rent-a-Home Take-a-Break Source: Stayz 14

Families are key segment driving holiday rentals market Young families focus on holidaying in Australia due to the ease of including kids and pets* at an affordable rate Female skew travel decision maker Strongest with those aged 35 49 yrs Over 76% are married or de-facto Over 43% have children under the age of 16 Travel Behaviour by Life-cycle HOUSEHOLD LIFE-CYCLE Total Australia Young Singles 9.6% Young Couples 7.3% Young Parents 21.4% Mid-Life Families 13.6% Mid-Life Households 30.1% Older Households 17.9% * Families represent 40% of dog ownership in Australia Source: Roy Morgan Single Source March 2012 15

Agenda 1. Welcome and background 2. The Australian holiday rental market 3. Trends in Australia and overseas 4. Future travel trends 5. The Stayz Group plans 16

There is good and bad news when looking at trends impacting our industry The external environment has served up a tough couple of years Three key Technology trends offer significant opportunity 1. Mobile 2. Payments (and path to instant bookings) 3. Social sharing 17

The last two years have suffered the 2 nd highest and 3 rd highest rainfall since 1900 1 Poor weather Annual rainfall Australia (mm, 1900-2011) 2 Strong Australian Dollar 3 Restrained consumer sentiment 4 Increase in international travel Source: Australian Bureau of Meteorology 18

Only the south-western areas have been spared Rainfall anomalies in the last two years (mm, FY2011-FY2012) 1 Poor weather 2 Strong Australian Dollar 3 Restrained consumer sentiment 4 Increase in international travel Source: Australian Bureau of Meteorology 19

The last two years have had the highest $AU since at least 1999 1 Poor weather Currency conversion from $AU to $US (1999-2012) 2 Strong Australian Dollar 3 Restrained consumer sentiment 4 Increase in international travel Source: Yahoo!7 Inc. 20

Consumer confidence has taken a further hit since 2010 1 Poor weather Westpac NSW Consumer Sentiment Index (Jul2010-Jul2012) 2 Strong Australian Dollar 115-15% 97 98 3 Restrained consumer sentiment 4 Increase in international travel Jul-10 Jul-11 Jul-12 Source: Westpac Bank 21

Outbound holidays have more than doubled since 2004 1 Poor weather Outbound visitors (mm visitors, FY2000-FY2012e) 10 2 Strong Australian Dollar 3 Restrained consumer sentiment +104% 5 4 Increase in international travel 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e 0 Source: TRA 22

ipod changed the music industry, iphones ramped even faster, ipad growth is 3x faster than iphone Source: Mary Meeker KPCB presentation May 2012 http://www.businessinsider.com/mary-meekers-latest-incrediblyinsightful-presentation-about-the-state-of-the-web-2012-5 23

In the US, the desktop PC is no longer the main computer 45% of web browsing is done on the ipad. Adding in SmartPhones, 60% of web surfing is done away from a traditional computer. Source: Business Insider Ipad Usage Survey 2012 07 (sample of 2000 readers) http://www.businessinsider.com/ipad-usage-surveyresults-2012-7?op=1#ixzz22cfibxrs 24

US travellers are increasing their use of Mobile Mobile trend in the US market A third (30%) of all US smartphone owners research travel on their smartphone. This is expected to grow to 54% in the next 4 years Using smartphones to book travel is expected to double in the next 4 years (from 16% in 2012 to 32% in 2016) Source; emarketer US Leisure Travel: Digital Ad Spending Forecast and Key Trends June 2012 25

Fairfax s Australian Audience are strong users of mobile for Travel Mobile presence of Fairfax Metro travel audience 61% of Fairfax Metro s travel audience have a smartphone or tablet 26% 49% use their smartphone / tablet for travel research and/or 27% 53% booked a flight or accommodation on their smartphone / tablet Source; GfK Blue Moon SMH/AGE Travel Survey, May 2012 26

Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Stayz has experienced an explosion in mobile visitors Stayz: Mobile Browser share of Visits 25% 20% 15% +175% 17% 16% 16% 19% 18% 22% All 10% 8% 9% 10% 11% 12% 13% 14% 5% 5% 5% 5% 5% 6% 6% 0% 27

Consumers are beginning to expect the ability to pay online/mobile CBA has more than 6.5 million internet customers and 2 million mobile phone customers using its mobile banking app. Two years ago just 2% of CBA consumer transactions were through a mobile device - now that figure is nearly 40% CBA expects to launch an app enabling payment to friends via Facebook in Dec this year 28

Stayz Online Payments system transactions mirror the trends +100% FY11 FY12 29

Social sharing offers significant opportunities 30

Agenda 1. Welcome and background 2. The Australian holiday rental market 3. Trends in Australia and overseas 4. Future travel trends 5. The Stayz Group plans 31

Stayz s visitors like to holiday in different ways Holiday preference Source: Stayz 32

Changes in financial situation are strongest possible impact on travel plans Half of people s plans won t be affected. PAST plans more affected by natural disasters FUTURE plans more affected by high AUD and attractiveness of overseas deals Opportunity to build awareness of holiday rentals value and domestic deals. 30% 25% 20% 15% 10% 5% 0% Past year Future Source: Stayz Consumer Sentiment Survey July 2011, TRA 2011 Forecast, Issue 1 33

How are travel plans affected? Those whose plans were affected: Took shorter breaks More driving/self-catering holidays to save money In the future they plan to: Take more overseas holidays Take longer breaks 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Past Future Opportunity to build awareness of holiday rentals value, taking longer breaks locally saving money with driving/self-catering options. Source: Stayz Consumer Sentiment Survey July 2011 34

Agenda 1. Welcome and background 2. The Australian holiday rental market 3. Trends in Australia and overseas 4. Future travel trends 5. The Stayz Group plans 35

A few of our key objectives 1. Significantly develop our consumer, owner and agent product offerings, to improve booking conversions 2. Grow awareness and consideration of the Stayz brand 3. Extend into selected overseas markets, develop global partnerships 36

Our marketing is focused on growing your business Increased marketing spend 280% since 2009 Invested in building awareness Increased unprompted brand awareness by 73% YOY Increased prompted brand awareness by 26% YOY Grew visitors to Stayz by 18% YOY Invested in growing Enquiries Enquiries up 140% since 2009 Average >100 enquiries per property p.a. 37

Here is just a sample of some key marketing initiatives in the last year Stayz Charity Auction raised $40,000 thanks to you Facebook site 31,000 fans 200% incr YOY Get-Together Daily Deals 38

A focus on property listing detail drives more enquiries & bookings Important Enquiry nights per property (FY2012, Stayz properties) Differentiators Properties displaying specific features Located near adventure sports Spa Baths & Relaxing Health Style Facilities for corporate groups Bed and Breakfast Suitable for large groups Cottage/Lodge/Villa Suitable for weddings Gay friendly accommodation Under $80 per night Suitable for family groups Located near a beach Specialising in weekend accomm. For couples (romantic location) Located near natural beauty Executive class accommodation Good for short-term rentals Booking nights per property (FY2012, Stayz properties) Num. of properties Source: Stayz analysis 39

Conversion rate (FY2012, Stayz properties) There are a number of ways to improve your booking conversion 1 Go for online payment 2 Always display your price 3 Chase Guest Rating 4 and Guest recommendation +8% +169% +80% +85% Non-SOPS SOPS Price not displayed Price displayed None at all Any Guest Rating None at all Any Recommendation Later sessions go into the detail Source: Stayz 40

2001 2002 2003 2004 2005 2006 2007 Ranking algorithm was appropriate in the early days now probably needs tweaking 2008 2009 2010 2011 2012 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Ranking average by listed year (FY2012, Stayz properties) Booking Conversion rate by listed year (FY2012, Stayz properties) Reasons for falloff in conversion? Photos and details need updating? Trend Stayz system training updates? Other? Source: Stayz 41

Our international collaborations are well into the development phase 42

Enjoy the rest of the summit! That was a quick summary We will delve into much more detail throughout the coming sessions I look forward to chatting with many of you over the next two days 43