We calculate the Market Grade by comparing the performance of a market against every other market in that country. The grade is determined by which percentile the market sits in for 3 key metrics:
Seasonality
Rental Demand
Revenue Growth
The Market Grade is our way of ranking the performance of a market against all other locations within it's country. The percentile the market sits in for each of the 3 metrics determines the overall grade. For example, a market in the 70th percentile would score 70 out of 100. The Market Grade is updated each month, so it can be a good indicator of any change in the market on the whole.
What determines our Market Grade:
Seasonality
This is calculated using the percentage difference between the minimum & maximum RevPal (Revenue per available listing) in the prev. 12m period.
High Score = Low Seasonality
Rental Demand
How often are rentals booked throughout the year? By using a combination of historical occupancy and market supply data we can interpret the relative demand for listings in this area
High Score = High Travel Demand
Revenue Growth
Did vacation rental listings in this location earn more this month than they did in the same month last year? This score is calculated by looking at the change in year-over-year RevPAL for properties that received bookings in both time periods.
High Score = Increasing Revenue per Property