Vacation Rental Metrics: Percentile

Mark Saldana | January 24, 2019

What Is a Percentile?

A percentile is the percent of people, from 0% to 100%, that fall below that number in any set of data. In vacation rental data, percentiles are used to rank performance of properties across a market by occupancy and ADR.

Knowing how your listings compare to similar rentals in your market is one of the most important aspects of pricing your vacation rentals. And since short-term rentals can run the gamut from budget-friendly to luxury, even similar homes in the same neighborhood often see vastly different ADR and occupancy rates.

At AirDNA, we think that percentiles are the best way to show performance within a market since vacation rental hosts can be anything from non-professional part-time hosts to professional managers with full-time listings.

In MarketMinder, you’ll find percentiles for occupancy and ADR. These numbers can help you competitively price against similar listings and better understand how your vacation rental listings are performing in the market.

Occupancy Percentile

Looking at occupancy rates, if the 50th percentile occupancy rate is 61%, it means that 50% of the listings achieved an occupancy rate of 61% or higher. The 50th percentile represents the median in the market.

Occupancy 50th Percentile

 

Vacation rentals at the 25th percentile represent accommodations that are frequently unoccupied (either due to being part-time rentals or because of low demand), while frequently booked listings fall in the 75th percentile or higher. Vacation rental listings in the 90th percentile or above represent the very best or the top 10% in the market.

Determine Occupancy Percentile in MarketMinder

  1. Sync your Airbnb listings on the My Properties tab in MarketMinder
  2. Review your listings’ average Occupancy Rate for the last twelve months
  3. Navigate to the Occupancy tab and look at the Historical Occupancy Rates chart
  4. Compare your Occupancy Rate to the historic occupancy in your market, filtered by listing type and size

ADR Percentile

Taking revenue into account, if the 50th percentile ADR was $5,200 over the last 12 months, it means that 50% of the listings earned more than $5,200.

Vacation rentals at the 25th percentile represent more budget and economy-level accommodations, while higher-end, luxury listings can fall in the 90th percentile and achieve best-in-class returns.

Determine ADR Percentile in MarketMinder

  1. Sync your Airbnb listings on the My Properties tab in MarketMinder
  2. Review your listings’ booked Average Daily Rate (ADR) for the last twelve months
  3. Navigate to the Pricing tab and look at the ADR Range Chart
  4. Compare your ADR to the historic ADR in your market, filtered by listing type and size

Using Your Percentile to Measure Performance

After determining your property’s Occupancy and ADR percentiles, you can use this information within MarketMinder to better gauge how your vacation rental listings are performing.

Vacation rental markets are always changing, and your property performance may continue to improve over time. Make sure to actively reassess your target percentile as you make improvements to your listings or as new competitors come into the market.

Check out the updated Pricing Tab in MarketMinder to start making more intelligent pricing decisions for your listings today.

Learn more about AirDNA's vacation rental metrics

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