Percentile Distribution

Percentile Distribution

Percentile - A value on a scale of 100 that indicates the percent of a distribution. It is a way of expressing where an observation falls in a range of other observations.
In PriceLabs, percentiles are used frequently to understand how a property is priced relative to the market. In simple terms, if in a market the 75th percentile price is $250, then that means 75% of the properties in the market are priced below $250, and 25% are priced above $250.

In Pricelabs percentiles are essentially used to show the prices with respect to number of properties distributed in a certain area. 

This can be better understood in the overview table given in Listing Neighborhood Data panel.

From the above table we can observe the below - 
  1. On average, 25% of the 2BRs listings are priced below $122"
  2. 50% of 2BRs listings are priced below "$139" 
  3. 75% of 2BRs listings are priced below "$165"
  4. 90% of 2BRS listings are priced below "$186"

 How can you select which percentile is best for your listings?

We prefer using these percentiles with respect to the quality  of your listing (amenities)

  1. 25th Percentile - If your properties has less amenities or reviews, you can price your property according to the 25th percentile price displayed in the Neighborhood data tab. 
  2. 50th Percentile - If your properties has average amenities and you want to play it safe, always trust the median (average) price going on in the market. This is where most of the listings in your area would be priced at. You can use this price to increase your chances of bookings, as guests is your area are majorly booking at around this price.
  3. 75th Percentile - If your properties are at a higher end and you want to price accordingly, or you might be getting a higher demand there's no risk in pricing your listing according to the 75th percentile price. (You can go above the bar if your listing is doing really well)

    • Related Articles

    • Listing Neighborhood Data

      When pricing any listing, there are always several questions that come up: What is the average price in your area? How are prices compared to comps? How does occupancy compare? How are listings priced in the next months? Are they getting booked? Are ...
    • Using VRBO data for your dynamic pricing!

      After 2 years of tracking VRBO booking trends, we're finally ready to put them to work. You can now opt in to have VRBO data drive your dynamic pricing recommendations if you are in a VRBO heavy market. We did want to add a few findings from out ...
    • Listing Hotel Data

      Knowing how hotels and short-term rentals are performing in your area is essential because potential guests consider both options when planning their vacations. Keeping track of both types of accommodations allows you to stay competitive in your ...
    • Understanding the Market Dashboards

      Market Dashboards are fully automated personalized dashboards that can help you track your location’s STR booking data through easy to digest graphs and insights. New user accounts with listings imported in PriceLabs will be credited with 1 free ...
    • 'AI Insights' in Neighborhood Data: Understanding Price and Occupancy charts

      What is AI Insights & Why introduce this feature? At PriceLabs, our mission is to democratize revenue management. This is why we’re thrilled to announce that we’re now leveraging Generative AI to turn complex data into simple sentences. We can ...