KEY POINTS:
Domestic holidaymakers hoping to get bargains this summer will be disappointed.
Fewer Kiwis are travelling overseas and domestic booking agencies for baches, motels and holiday parks said most accommodation over the peak summer period was long gone.
A Herald on Sunday survey of popular holiday spots including Omaha,
Pauanui, Matarangi, Tairua, Whangamata and the Bay of Islands found most places booked from December 20 to January 15.
Letting agents speculated that Kiwis spurred on by the promise of a long, hot summer were opting for self-catered bach holidays rather than wasting money on fancy cocktails at foreign resorts.
The recession also meant some owners were letting their properties over the peak period for the first time to cover rates and other outgoings.
Agents said rents at the most expensive homes might drop a little, but most would remain the same because of supply and demand.
Bach renters were saving money in other ways, choosing large houses with extended families or friends.
Some agents expected prices to drop in some areas after February.
Bachcare Ltd, which offers full-service rentals with a meet-and-greet on the first day and cleaning, reported most properties were fully booked over the peak summer period.
General manager and founder Leslie Preston said demand remained high at the top-end of the market.
One overseas client renting a beachfront house at Matarangi for $650 a day had requested daily housekeeping and a chef.
But more couples had booked houses this year, and she assumed it was because the self-catering option meant they got good value for money.
"We have urged our owners to be mindful of the current economic market [when setting rates]."
Motel owners are also expecting brisk business, with 70 per cent of their customers this summer coming from the domestic market.
Campgrounds and holiday parks will also be benefiting from Kiwis staying home this summer.
Top 10 Holiday Parks general manager John McCann said New Zealanders on a budget were choosing traditional holidays, but increasingly expected luxuries such as internet connection and flatscreen TVs in their accommodation.
Advance bookings were up compared with last year, but members were nervous about next year because of the unknown effect of the global credit crunch on the foreign market.
Fergus Brown, of the Holiday Park Association of New Zealand, which represents 400 commercial campgrounds, confirmed domestic bookings were up and attributed the increased local demand to Kiwis choosing not to holiday overseas this year.