Brian Sharples, co-founder and CEO of Austin-based HomeAway discusses the ever-changing travel industry and the many benefits (health and otherwise) of getting away.

Checking-in, checking-out, getting used to miniature-sized toiletries, seemingly endless tipping pressure and the budget-busting temptations of the mini-bar. Most travelers are all too familiar with these frustrating, albeit customary experiences of staying in a hotel. In an era when vacation time is tight and money is even tighter, it seems we’re all looking for more value, more freedom and more familiarity when seeking respite from the rigors of daily life.

This is exactly what Brian Sharples, co-founder and CEO of Austin-based travel company HomeAway, Inc. realized whenever he and his family went away on vacation. Weary of outrageous prices for hotel rooms they could barely squeeze into, or a menu of amenities that didn’t fit their lifestyle, Sharples insisted there had to be a better way. Why wasn’t there a place that had all the comforts of home, away from home?

So, he started renting vacation homes. Notable perks like full-sized kitchens, washers and dryers, and enough space and flexibility to invite friends and family made the prospect of renting someone else’s home a much more enticing and exciting option than staying in a hotel. Yet, at the time, Sharples noticed it was challenging to locate and book vacation rental properties online. The milieu of options was fragmented and scattered all over the Web.

So in early 2005, he and his partner Carl Shepherd created what is now considered the largest vacation rental portal in the world, HomeAway.com. The Web site has become a veritable one-stop shop for finding and comparing vacation rental properties, as well as connecting homeowners with travelers from all over the globe. The still privately-held company has revolutionized the travel industry and dramatically changed the way people think about vacationing.

With Sharples’ expertise in technology, brand strategy and his relationships with venture capitalists, HomeAway, Inc. has enjoyed exponential growth and become a juggernaut in the travel industry in just five short years. The Web site is already ranked sixth in the travel information market, with more than 3.3 million unique visitors each month, while boasting the largest and most diverse selection of homes around the world. Featuring almost half a million properties across 120 countries, it is by far and away the world’s leader in online vacation rentals.

With the sting of the recession still reverberating, vacation renters and property owners alike are finding solace in the company’s offerings, not to mention HomeAway’s simple, straightforward approach. Available properties range from the lower-income bracket to super-luxurious, and clients generally end up spending 50 percent less per square foot than they would for a comparable hotel room, according to a study conducted by the company. One in five owners cited economic conditions, including the need to generate additional income, a recent job loss and/or the inability to sell their home, as reasons for using HomeAway.com.

But perhaps most important, end users of HomeAway are seeing a convenience and accessibility to vacation destinations like never before, all free of charge. Detailed property descriptions, photos, unique features, as well as nearby attractions are provided for each and every home. Plus, properties can be searched by a variety of criteria including location, amenities, user ratings or even desired number of rooms. Once a connection with a renter is made, travelers can even negotiate on price.

We recently sat down with Sharples to discuss the HomeAway.com platform, his take on the current vacation rental market, why he chose to work and live in Austin and why he believes travel is good for your health.

QUESTIONS & ANSWERS with BRIAN SHARPLES

How has the recession impacted the travel business and more specifically, the vacation rental space?
Consumers are still taking vacations, but demanding more value. The vacation rental business has benefited from this, as families and groups find they can get more room for less money, and save money by cooking their own meals instead of eating out every night. We’ve also seen that many travelers are staying closer to home, with many opting to drive, rather than fly, to their vacation destination.

What differentiates HomeAway from other popular destination Web sites like Trip Advisor and Flip Key, or say the “housing swap” section on craigslist?
HomeAway has the largest and most diverse inventory of any other vacation rental business; we have 475,000 vacation rentals in 120 countries for travelers to enjoy. No other competitor comes close to matching our selection of properties and the features we provide for travelers. We were the first vacation rental site to offer a rental guarantee for travelers and feature unbiased traveler reviews. HomeAway also has the largest customer service team in the industry, with more than 200 representatives worldwide, which represent more than 33 percent of our entire staff. We are also the only company that has made significant investments in building awareness for the vacation rental category.

How exactly is HomeAway monetized?
HomeAway’s business model is based on a subscription service. Owners and property managers pay us to advertise on our site. The average subscription costs $300 per year, and the site is free for travelers.

Why do you think there’s a movement towards vacation rentals? Is it more awareness and availability, economics or something more experiential?
Primarily the quality of the experience. There’s been a huge increase in the number of vacation properties available for rental in the past 10 years. So the selection and quality has improved dramatically. With HomeAway, you can now find a rental in just about every location, in any shape and size, to fit just about any budget. Vacation rentals also offer a tremendous value versus hotels, and that’s been a big advantage in these tough economic times.

In your opinion, what are some of the most profound ways your business is evolving and where do you see HomeAway in the landscape in a year? In five years? In 10 years?
We’re on a mission to make finding and booking a vacation rental as easy as booking a hotel. Although we’ve made great progress to date, we still have a long way to go to reach this goal. We already have nearly 500,000 properties — mainly in the US and Europe. Over the course of the next year we’ll be pushing into South America with the recent purchase of a company in Brazil. Over the next five years we’ll be adding properties in Australia and Asia. Over the next 10 years, I’d expect to see very consistent methods of payment and booking for all properties, providing a booking experience similar to hotels.

What is HomeAway’s “bread and butter” demographic? Couples, families, business travelers?Traditionally, the people who are booking vacation rentals are families with one to three kids. But we are seeing more travelers use vacation rentals for shorter stays, which means opportunities for weekend getaways and couples trips. They’re also used a lot for getaways with groups of friends because of the space and affordability. Vacation rentals are generally not used by business travelers, although we’re growing very quickly in major cities and believe this will start to grow in popularity. The typical owner on HomeAway is generally married, over 46-years old and a baby boomer. However, the most recent NAR (National Association of Realtors) survey released earlier this year found a trend towards younger vacation home buyers. Nearly half (47 percent) of the buyers in 2009 were under 45 years of age.

What’s the average length of a HomeAway booking/ stay? Average budget? Most popular destinations?
The average traveler stays at a vacation rental property for seven days at an average price of $1,650 per week. However, the length of stay and price can vary depending on the traveler’s needs. Traditionally, popular vacation rental destinations have been beach and coastal areas such as the Outer Banks, Myrtle Beach or Provincetown. Big cities such as New York, San Francisco and Chicago are very popular as well.

Your Web site states: “We work hard, then, we play ping pong.” What sets HomeAway’s culture apart from that of other companies?
It’s a fast-paced, entrepreneurial company with extremely competitive people, but we understand the need to have fun, relax and work as a team. We recently invested in a world-class headquarters that has lots of great amenities and workspaces, including a very nice game room and one of the nicest roof decks in Austin. We offer one of the world’s best vacation policies and encourage our employees to get out and try our products.

To you, what makes Austin such a great place to do business? To live?
Austin is a very friendly town for start-ups because it’s loaded with young and enthusiastic talent. We also have a great support structure for entrepreneurs in our community, including world-class venture capital resources to support new ideas. The climate and outdoor life in Austin is also very helpful when recruiting technology talent from places like California. HomeAway recently moved downtown to take advantage of all the wonderful restaurants, shops, living options and services that have sprung up in the last 10 years.

Do you think as Americans we travel/get away enough?
About half of our company is in Europe, and I can safely say that we travel a lot less than our counterparts overseas. Most US companies don’t provide enough vacation time for their employees, or value the restorative powers of getting away the way they should. At HomeAway, we’ve adopted one of the most liberal vacation policies of any company in the country. We want our employees to try our products, but also know they will be more productive if they’re allowed to take a break from work a few times each year.

What role do you think travel/leisure plays in living and maintaining a healthy lifestyle?
Personally, I believe travel plays a huge role in maintaining a healthy lifestyle. Many people enjoy sports on vacation and adventure travel has become a very large segment of the overall travel market. And most medical professionals agree that stress can take a big toll on any person’s well-being. Vacations help relieve stress, or at least allow people to park it to the side for a period of time.

What are three of your favorite homes away from home (three favorite travel destinations) and why?
Aspen, Colorado is one of my family’s favorite places in both the summer and winter. I’ve always enjoyed the beauty of the mountains, and love to ski and mountain bike. We’ve also rented several times in Italy, in particular Tuscany where we enjoy the wine and food, and generally laid-back atmosphere. For beach vacations, I love going to Mexico, specifically Playa del Carmen and Punta Mita. The beaches are amazing, there are fantastic and very new properties for rent and the margaritas always taste better the further south you travel!

Personally, what do you do to live a healthy and fit lifestyle?I try to get some exercise every day and mix it up as much as I can. I love to run on the hike and bike trail (just outside our offices), bike (I live close to the Veloway and hill country), kayak and water-ski here in Austin. I also enjoy tennis and try to get out to the mountains for mountain biking in the summer or skiing in the winter as often as my schedule allows.