The Internet has allowed value-conscious vacationers to uncover bargains beyond the familiar hotel chains and book these accommodations with greater ease. And with its recent IPO, this company offers investors the opportunity to share in the profits of this burgeoning market.

A start-up company would have to believe in its product to pay $3 million for a 30-second Super Bowl ad. With hundreds of millions of captive viewers—Super Bowl advertisements draw as much attention as the game itself—it’s a high-risk, high-reward strategy. It was a bet that paid off for HomeAway (NSDQ: AWAY), which launched its initial public offering (IPO) in June, 2011, four months after Super Bowl XLV. 

The Austin, Texas-based firm was founded in February 2005 and has become the world’s leading online site for vacation rentals, linking millions of vacation rental-seeking travelers with hundreds of thousands of property owners in over 145 countries. The company caters to value-seeking vacationers who want to negotiate a lower price than is typically offered by a hotel. HomeAway’s site facilitates negotiations between travelers and owners, generating a majority of its revenue from listing fees paid by owners.

Since its launch, the company has gobbled up 17 other websites that dovetail with its strategy, including VRBO.com, VacationRentals.com and BedandBreakfast.com. Its flagship website currently offers 625,000 listings, making it the industry leader in terms of volume.

There are 20 million people who own vacation homes in the US and Europe. And the online vacation rental business has only tapped into a small portion of these owners, leaving plenty of room for growth. HomeAway has plans to expand its operations into Asia and South America. 

HomeAway’s competitors include online travel website Orbitz (NYSE: OWW), which announced plans to offer vacation rentals in 2008. Online classifieds listing site Craigslist—which offers everything from apartments to autos—is also a rival. However, Airbnb is the one competitor that occupies a similar niche as HomeAway.

CEO Brian Sharples maintains that posting volumes increase during economic downturns as people flock to the site with hopes of augmenting their incomes by listing their homes as vacation rentals. Although people tend to travel less in times of economic uncertainty, those that do travel may opt for vacation rentals over hotels to save on costs. 

The US hotel industry generated about $100 billion in revenue in 2010, with demand for hotel room nights growing 7.6 percent to more than 1 billion room nights. Despite the increase in hotel stays, the actual supply of rooms rose by a mere 1.9 percent. Should demand among travelers continue to grow, there is an opportunity for alternative venues to snatch a larger slice of the pie.

The company’s bottom line was painted red in 2007 and 2008, but performance rebounded in 2009 and 2010—years that saw significant growth. In 2010, HomeAway generated $167.9 million in revenue, up 39.6 percent from 2009. Net income was also up $16.9 million, more than double the $7.6 million reported in 2009.

The company’s book value is currently at negative $2.80. The stock’s price-to-earnings ratio stands at 85.53, but that’s not unusual for a growth stock that’s still in the early phase of its ascent. If you’re looking for a company with growth potential, you may have found your home away from home.