How do Vacation Rental Performance Percentiles Work?

Percentiles are a great way to rank property performance when looking at a varied dataset of different property types with differing numbers of available days. Each percentile represents a group of properties and how they are performing in certain metrics.

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We use percentiles when looking at occupancy, rates, and revenue in MarketMinder. In this case, we are showing the 25th, 50th, 75th, and 90th percentile for performance in occupancy

The properties that sit in the 90th percentile represent the top 10% performing properties, the 75th percentile the top 25%, the 25th percentile the bottom 25%, and the 50th percentile the median, and the majority making it the most reflective of a market's general performance.

In the example above, the 50th percentile achieved an occupancy rate of 57% in January of 2021, therefore, the majority of properties in that month were occupied 57% of the days they were available to be booked. Knowing your occupancy, rates, or revenue for a month and comparing it to the corresponding percentiles helps you understand how you’re performing within your market and if there’s room for improvement.

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