LOWER than average temperatures and a return to international travel are believed to have led to a drop in demand for holiday rentals in Port Stephens.
That's according to some operators in the region who have experienced a decline in bookings for this year's summer holiday season.
Data provided to The Newcastle Herald from Airdna, which analyses the performance of short-term rental properties listed on Stayz and Airbnb, reveals that demand is down 7 to 10 per cent from last year for the period of December to February across Port Stephens.
And there has been an even bigger drop from the pre-COVID summer of 2019-2020. Demand this summer is down more than 40 per cent from that time.
The report, captured on December 19, shows 6430 booked nights in Nelson Bay for January 2023 compared to 6748 nights booked in December 2021 for stays in January 2022.
The data looks at current bookings made for trips in December 2022 and January and February 2023 in each of the submarkets of the Port Stephens Council area including Nelson Bay, Shoal Bay, Salamander Bay, Soldiers Point, Boat Harbour and One Mile.
The report reveals that demand is down from the same time last year in these markets, however, less so for December, with the most significant decreases in February in Boat Harbour with a drop of 47 per cent and Salamander Bay, which fell 27 per cent.
Nelson Bay's O'Meara Property principal Daniel O'Meara handles bookings for 460 holiday properties in the Port Stephens region.
He said there has been a noticeable drop in bookings compared to the same period in 2021.
"We are getting fewer bookings, there are no two ways about that," Mr O'Meara said.
"It is a noticeable drop from last year. Last year we saw that rush after lockdown and we got that massive influx of people whereas this year it is spread out across.
"Our forward bookings are still down a bit but we take quite a lot of last-minute bookings."
Operators say factors such as the re-opening of international borders, the rising cost of living and adverse weather due to La Nina have all contributed to fewer holidaymakers heading to the region.
"Some of it is due to rising interest rates and household budgets, but I think a lot of it is weather as well," Mr O'Meara said.
"We haven't had real summer weather yet so it hasn't been encouraging people to think about the beach so much. That is definitely hampering us at the moment.
"It has slowed down a bit and other businesses in the bay are saying it too."
The data from Airdna reveals that prices have slightly dropped for January 2023 with the average daily rate at Nelson Bay about $420, compared to $490 last January.
In Shoal Bay, the average daily rate next month has fallen to $426 compared to $511 last January.
Average rates are typically equal to or below last year's levels but remain higher than they were in 2019.
The data also reveals that holidaymakers are choosing to wait until closer to the dates before booking their accommodation.
Raine and Horne Nelson Bay and The Bay Holidays principal Debra O'Neill has 70 short-term holiday rentals on her books.
Like Mr O'Meara, she has noticed a fall in bookings.
"Compared to last year when everyone was busting to get out after lockdown, it was crazy and we were very busy but this year I can definitely see some gaps across the board," Mrs O'Neill said.
"With that said, am I concerned that they're not going to get booked? No, because I believe there will be those last-minute bookings.
"Looking at December 20 through to the end of January, which is predominately the Christmas period, we are looking fairly full but there are still some gaps."
Available listings in the region are also down from last year, though supply nights are up in December and January, indicating that there are fewer properties but with more availability.
The trend is felt across the country in other holiday hotspots, according to Airdna.
Prices of South Coast holiday rentals have also been slashed and the minimum-night requirement reduced in a bid to fill properties during a more subdued summer period in areas such as Mollymook and Batemans Bay.
Demand for Mollymook Beach holiday rentals is down 27 per cent for January compared to last summer,
