We use Price Tiers to segment a market into different pricing categories. With these Tiers, our markets can be broken down into the most relevant market segment based on your research; you can apply the Tiers on our Rates and Revenue pages.
How Do We Define Price Tiers?
Listings are categorized under a Price Tier by the number of bedrooms; Tiers are then defined by the performance of the listings' average daily rate over the last 12 months. The properties are grouped under the Price Tiers based on their performance in the ADR they achieved in that timeframe.
We have five Price Tiers: Budget, Economy, Midscale, Upscale, and Luxury. Each Price Tier is segmented equally based on the number of listings in the market.
For example, in a market of 100 properties, each Tier would be made up of 20 listings, from the lowest performing at 1 to the highest performing at 100.
Using the same example, the 100 listings ADR ranges from $100 to $1,100.
Budget properties: 20 listings with an ADR from $100 to $300
Economy properties: 20 listings with an ADR from $300 to $500
Midscale properties: 20 listings with an ADR from $500 to $700
Upscale properties: 20 listings with an ADR from $700 to $900
Luxury properties: 20 listings with an ADR from $900 to $1,100
As more properties come into the market, they will be allocated a Price Tier depending on the ADR they achieve.
How to Use Price Tiers
MarketMinder is a powerful tool to help you navigate and research a short-term rental market. The introduction of Price Tiers lets you get even more detailed with your market exploration.
You can apply Price Tiers at the top of the Occupancy, Rates, and Revenue pages; the below is taken from the Rates page:
You can set the number of bedrooms and Price Tier here; clicking the More button will open our expanded filter options:
Here you can view by the type of property, from apartments to unique stays, whether the listings are professionally managed or not, the guest ratings, and the number of bathrooms and guests. With the Tiers and these filter options, you can make your search more relevant to your goals in the STR industry.