1. LYP Usability Test Results Conducted April, 2013 Page 1 LYP New Owner Funnel Usability Test Results Conducted by Jayne Schurick (US) & Cecilia Oyugi (UK) Usability Consultants jschurick@gmail.com (408)353-1293

2. LYP Usability Test Results Conducted April, 2013 Page 2 Objectives 1.Do users understand the product; have we presented the most compelling benefits and key information needed to join our sites? 2.Whether users can complete the flow and understand the next steps once they’re done. 3.What are the usability issues they encounter along the way? 4.How satisfied they are with the overall user experience - in particular, how long it took, how complex it seemed; do they understand all of our products? 5.If they use one of our competitors, who? How does our new listing sign-up process compare? 6.Are there users who are not yet ready to sign-up? What is their mindset? What further information could we provide to help them make the decision?

3. LYP Usability Test Results Conducted April, 2013 Page 3 Test Format and Participants Remote test using WebEx to allow participants to view and control the computer displaying the website. 8 participants in the US and 6 in the UK. All participants were “prospects,” i.e., owners who had previously started a HomeAway listing (if only by supplying their name and email address on the first LYP page). UKUS # of properties 126 222 310 >310 Advertise on other sites? Yes65 No0 3 Gender Male25 Female43

4. LYP Usability Test Results Conducted April, 2013 Page 4 Overall Findings

5. LYP Usability Test Results Conducted April, 2013 Page 5 Findings Related to Market While individual findings and comments on the following pages might be attributable to either the US or UK market, the overall tenor of the findings is very similar. We therefore draw the same conclusions and offer the same recommendations for both markets.

6. LYP Usability Test Results Conducted April, 2013 Page 6 Findings Related to Cost and Subscription Participants said that HomeAway’s prices for advertising are high. Paying up-front before realizing any benefits is problematic. Other sites that offer pay-per- booking are more attractive, at least initially. When asked, participants said they had rejected HomeAway because of the high cost and needing to buy a subscription. Most said they would re-evaluate HomeAway if there was an option to pay based on bookings. If they were to pay for a subscription on HomeAway, participants said they would like a trial period to “test the waters” first. This would help mitigate the risk of paying an annual subscription that has no guarantee of bookings. Most participants said they would prefer to create their listing and then pay. As a participant in a previous usability said, “it’s like paying for a dress before you find one you like.”

7. LYP Usability Test Results Conducted April, 2013 Page 7 Findings Related to Subscription Levels and Upsells Participants didn’t understand the differences among the subscription levels. Ranking position is an unfamiliar concept that requires understanding how HomeAway displays properties to travelers, and it doesn’t match owners’ expectations of what they are paying for. Participants felt deceived after choosing, for example, a Classic subscription and then ending up with a higher bill after choosing some of the other products. One participant called it a “Ryan Air” experience; others said they felt “nickel and dimed.” Participants felt that if there is a need to buy other products on top of their chosen subscription level, the base products are not good. (Note that most participants didn’t notice that the higher subscription levels included the add-ons.) Participants thought that the subscription levels should be presented in monetary terms, for example, “if a homeowner selects the Platinum subscription level, they can expect to earn £xxx more than a Classic subscription…or get more inquiries, bookings, etc.”

8. LYP Usability Test Results Conducted April, 2013 Page 8 Other Findings There was concern that creating a listing would be difficult, and there’s no reassurance on the website that the process will be easy. It wasn’t clear if there was a cancellation policy and where to find it. It wasn’t clear at what point the homeowner gets paid after a property is booked. On the UK site, there are several American terms, e.g., “vacation,” size listed in m 2 instead of number of bedrooms. When some participants searched for a holiday property rental on Google, HomeAway didn’t feature high in the results. Note also that there are many severe accessibility issues on the pages that will prevent people with disabilities from using these pages.

9. LYP Usability Test Results Conducted April, 2013 Page 9 Findings Related to the Study Objectives 1.Many users do not understand HomeAway’s offerings. Even though the pages contain a lot of information about the benefits of renting a vacation property and of advertising on HomeAway, the information is not presented simply and in a clear and logical flow. Plus key information about advertising on HomeAway’s sites is often missing or buried. 2.Test participants were able to complete the flow and understand next steps once they were done. While they encountered some issues, it’s unlikely that a motivated user would unable to complete the process. 3.Usability issues included: –Critical information below the fold –Action buttons below the fold or above the fold after scrolling down –Insufficient explanation of subscription levels and search positions –Subscription levels don’t match users’ expectations/mental models of what they are paying for –Insufficient explanation of site bundles and featured listings –Feeling that creating their listing would be hard

10. LYP Usability Test Results Conducted April, 2013 Page 10 Findings Related to the Objectives (cont.) 4.Having been asked to go through the sign-up process, participants were generally satisfied with the overall experience. It’s not a particularly long or complex process, and once they selected a product (generally “Classic” without add-ons), they had a certain level of understanding about what they had done and what the next steps would be. 5.Some participants were advertising on a competitor site, including Airbnb, Flipkey, and OwnerDirect in the US, and Wimdu, Holiday Lettings, and OwnersDirect in the UK. All had chosen these sites due to no up-front costs. Other reasons included: –A participant had recently purchased a property that was being advertised on VRBO and OwnerDirect. He dropped VRBO because he would have had to create a new listing, which “seemed daunting;” OwnerDirect transferred the previous owner’s listing to him. –Airbnb has nice integration with the iPhone –Airbnb is a local company, “you hear a lot about it” –VRBO is buggy –It’s easier to book guests on Airbnb

11. LYP Usability Test Results Conducted April, 2013 Page 11 Findings Related to the Objectives (cont.) 6.All of the participants tested were still not ready to sign up with HomeAway. However, in order of priority, the following might convince them: 1.Offer pay-per-booking 2.Make it risk-free by offering a trial period, offer (or state) the cancellation policy, let them create a listing before paying (they will see that it’s not difficult, will have something more tangible, and will have more invested), offer upsells after creating their listing 3.Redesign pages so that information (key benefits, subscription levels, bundles, and featured listings, etc.) is clear and flows logically

12. LYP Usability Test Results Conducted April, 2013 Page 12 Page-by-Page Results

13. LYP Usability Test Results Conducted April, 2013 Page 13 Home Page In both the UK and US, some participants didn’t initially see “List Your Property,” and therefore didn’t know how to get started. In the US, some chose “How it Works” / “Homeowners” and eventually ended up on the LYP page, but that process adds steps and a lot of information that users may or may not need. (It might be better to put this information on a “learn more” or “new to renting” page and have users choose it if they feel they need it.)

14. LYP Usability Test Results Conducted April, 2013 Page 14 YLP Both the UK and US pages contain a lot of information, making it difficult to figure out what to focus on, what to read. The design of the page was described as “pale,” “weak,” and “faded.” Users generally found the information they were looking for, which was often how much it costs to advertise on HomeAway, and some users said they liked the bullet points or income calculator, but the page generally lacks visual focus and a strong call to action. There are many elements on the page that don’t foster a smooth transition from one to the next. In the UK, users would not expect to pay for a call if they needed help.

15. LYP Usability Test Results Conducted April, 2013 Page 15 How It Works On the US page, there was confusion between “How It Works” at the top of the page and the “How It Works” tab. Users expected these links to contain the same information.

16. LYP Usability Test Results Conducted April, 2013 Page 16 What It Costs The important information, what it costs, is “hidden” at the bottom of the page. Since this is the purpose of the page, it shouldn’t require scrolling, and some UK participants didn’t scroll down to see the other levels. The subtle design of the UK page contributes to the impression that the important information is hidden.

17. LYP Usability Test Results Conducted April, 2013 Page 17 Subscription Level Users didn’t understand the differences among the subscription levels. –First, it’s difficult to compare the levels, and the “key benefits,” which require an action and take up space on the page, are completely redundant with the information to the right of the search position name (at least for the first two search positions, which was often all participants looked at). (Note: this is only for the US site; the UK site doesn’t show the information on the right and doesn’t require an action to see the key benefits.) –Second, participants expected more than a difference in ranking position. The costs are substantial and ranking position is an unfamiliar concept. Until users understand how HomeAway works (i.e., the importance of ranking position on page views and inquiries), it doesn’t “feel” like something you should pay for. Participants were looking for something more concrete. If they made it down to the Bronze, Silver, and Gold levels, they understood more about what they were paying for (although the costs, especially for an owner new to HA, were generally prohibitive).

18. LYP Usability Test Results Conducted April, 2013 Page 18 All Subscriptions Most participants didn’t notice the information about what all subscriptions include, i.e., photos, reviews, calendar, and map. The few who read this information commented that they would have expected these features to define the differences in the subscription levels.

19. LYP Usability Test Results Conducted April, 2013 Page 19 Subscription Level Lightboxes Very few participants noticed or clicked on the links that define the subscription levels. For those who did, the information appeared repetitive and redundant (i.e., the same information appears for the link next to the search position name and in the key benefits, and unless you read it carefully, it seems to be the same for each subscription level).

20. LYP Usability Test Results Conducted April, 2013 Page 20 Video A couple of participants, but only a couple, watched the video. Those who did had a much better understanding of ranking position and subscription levels.

21. LYP Usability Test Results Conducted April, 2013 Page 21 Additional Sites At about this point in the process, participants were feeling a bit overwhelmed with the length of the process and the upsells. A UK participant described it as a “Ryan Air” experience, and several US participants said they felt “nickel and dimed.” For owners new to HA, the options and costs are overwhelming. In the study, practically no one selected these options. If that’s true on the actual website, HA should consider whether it might be better to move new owners through the sign-up process quicker and approach them with upsells later.

22. LYP Usability Test Results Conducted April, 2013 Page 22 Additional Sites (cont.) Participants didn’t understand how adding other HA sites would work. “Do I have to create and maintain listings on all those sites?” The UK site spells the options out in quite a bit more detail, which raises a question about whether US users can select individual European sites and how their listings get translated. When users scroll down to look at the options, the Next button is no longer visible.

23. LYP Usability Test Results Conducted April, 2013 Page 23 Additional Sites (cont.) UK participants felt that the VAT should be included in the advertised cost, not presented separately. “It’s crafty advertising.”

24. LYP Usability Test Results Conducted April, 2013 Page 24 Featured Listing Unless they had studied the HA website from a traveler’s point of view, participants didn’t understand what a featured listing was. The picture to the left is much too small to see and get a sense of what it is and where it appears.

25. LYP Usability Test Results Conducted April, 2013 Page 25 Payment With the contact details pre-populated from the first page, participants missed the required phone number, resulting in an error. Participants also didn’t see the payment and billing address information below the fold, resulting in an error. This was often a second error because it wasn’t clear that there were errors below the fold. After filling in the necessary fields below the fold, the Place Order button is no longer visible, and users have to scroll back to the top to continue. Several participants asked for an option to pay with PayPal.

26. LYP Usability Test Results Conducted April, 2013 Page 26 Confirmation When first arriving on this page, it’s not clear that there’s any information below the fold. Some participants thought they were finished and didn’t know their next steps.

27. LYP Usability Test Results Conducted April, 2013 Page 27 Confirmation On the UK site, the “Complete Account Setup” button didn’t inform participants sufficiently about what to do next. On the US site, the action to “Set Security Questions” did seem to offer a clear and logical next step.

28. LYP Usability Test Results Conducted April, 2013 Page 28 How It Works Note that these pages only pertain to the US market. As mentioned previously, there was confusion between this “How It Works” page and the “How It Works” tab on the LYP page. Two participants described the information on these pages as “pedantic”…or preachy. The look and feel of these pages is so different from the LYP pages that it appears to be a different site, just “stuck in there” without much thought about the continuity of information and design. That being said, some participants liked the “Ready, Set, Go” labels on the Overview page and the “3 Simple Steps” to register on the Advertising page.

29. LYP Usability Test Results Conducted April, 2013 Page 29 Recommendations

30. LYP Usability Test Results Conducted April, 2013 Page 30 Recommendations Redesign the LYP page to clearly provide what new owners need to get started: simplify the page, remove what doesn’t need to be there (such as the income calculator), tell them what the sign up and listing process involves, that creating their listing is quick and easy, and offer links to more information and handy tools (such as the income calculator). Put the form in the middle of the page. Keep all information above the fold. Offer a stronger, bolder design. Make tabs, if used, look like tabs. If other data (such as analytics and sign-up statistics) support it, consider getting users to commit to a basic/Classic subscription, and offer bundles and other upsells later. Or, highlight the Classic subscription and entice them with statements like “get more inquiries with these popular bundles…” or do it on the payment page. The key is to get new owners to commit quickly and easily, not force them to make decisions they don’t understand or have any data to base them on. Offer pay-per-booking, possibly with a link to a handy tool that would help them calculate what they will pay based on their best and worst-case booking scenarios. Offer a trial and/or cancellation period.

31. LYP Usability Test Results Conducted April, 2013 Page 31 Recommendations Let users create their listing, or part of a listing, before paying. Perhaps listing creation could be part of the sign-up process with an option to check-out at each step. For example, consider the following flow: 1.Enter basic personal info 2.Enter basic vacation home info (optional fields for headline, description, location, photos, etc.) 3.Show preview 4.Continue creating listing or check-out 5.Check-out shows basic cost with options to choose other subscription levels and products

32. LYP Usability Test Results Conducted April, 2013 Page 32 Recommendations Instead of “ranking position,” consider stating subscription levels in more concrete terms, such as their listing being in the top 1%, 10%, 25%, etc. of search results. Or state the levels in monetary terms, e.g., “owners who choose a higher level receive x% more inquiries (bookings, money). To upsell additional sites, offer a more compelling story, to answer, for example, whether a French traveler wanting to book a vacation rental in the UK would search on HomeAway.co.uk or on Homelidays. Also, tell users where their listings will appear, who will translate their listing, and how it will be maintained. Offer statistics, such as “owners who list on other HomeAway sites receive x% more inquiries.” To upsell featured listings, show users what a featured listing is: offer a small picture of a search results page with an option to view it larger. Offer statistics, such as “owners who purchase a featured listing receive x% more inquiries.”

33. LYP Usability Test Results Conducted April, 2013 Page 33 Recommendations Design pages such that important information is above the fold. Put the action to continue at the end of the information or options they need to choose, or offer a second button where they need it. In other words, don’t make them scroll back to the tops of pages to continue.