Where holiday rentals outperformed in 2023

But two years later, her decision to invest in the "glamping" accommodation on her property in Tarago, NSW was paying dividends.

"We have had the most amazing guests that you could possibly ask for," she said.

"It's definitely paid us back. The accountant's eating his words."

Short-stay rentals, like Ms Wilson's rural retreat, were big business in Australia during 2023.

Bookings on short-stay listing platforms Airbnb and Stayz totalled nearly $7.5 billion over the year, data from research firm AirDNA has found.

It marks a record year for short-stay revenue, beating 2022's total by $763 million.

Revenue across all Australian properties has surged since pre-COVID days, up 47 per cent compared with 2019, even with a slight drop in the number of booked nights.

In 2023, more than 21.6 million nights were booked across the two platforms, the data found.

"The revenue in 2023 was bolstered by significantly higher demand, as only 19.3 million nights were demanded in 2022 and only 15 million in 2021," AirDNA economist Bram Gallagher said.

While demand growth was steady, it was overshadowed by supply growth.

Mr Gallagher said supply was growing 20 per cent some months in 2023 as more hosts looked to take advantage of higher than pre-pandemic occupancy and average daily rates.

To determine which areas had the most successful rentals, AirDNA provided occupancy data which measures the number of nights booked against the total nights available.

The top three markets were all in Western Australia.

Wembley topped the listed with an 88.1 per cent occupancy rate across its listings, of which there were 56 properties available on average each month.

Subiaco, with an average 110 monthly listings, had an 84.5 per cent occupancy rate, while Fremantle, with 377 average monthly listings, came in third with 84 per cent occupancy.

Hamilton Island, in Queensland, was fourth on the list with an 83 per cent occupancy rate across an average 375 listings each month.

A shortage of holiday rentals may be behind the high occupancy rates in Western Australia.

Two-thirds of the top 30 markets for occupancy were found in the state and many had fewer than 100 listings on average each month.

When it came to the highest prices for holiday rentals, NSW dominated the top 30 list for average daily rates in 2023.

Lovedale in NSW's Hunter Valley had the highest average daily rate, coming in at $1052 per night.

Many of the properties in the area cater to large groups, including one listing for 40 people, which could have contributed to the high daily rates.

Mount Buller and Red Hill, both in Victoria, were next with average daily rates of $959 and $939 respectively.

The NSW markets of Avalon and Berry rounded out the top five most expensive areas at $913 and $861 per night respectively.

Ms Wilson spent close to 10 years dreaming of offering a secluded weekend retreat on her rural property.

Once she decided on the idea of a glamping tent - and successfully convinced her husband - Ms Wilson set about creating "something special" for couples.

Listed on Airbnb as Unique Date Night at Silver Lane, the property also includes a wood-fired hot tub and an outdoor movie projector. The price, about $330 per night, also includes a food platter, wine, beer and breakfast.

Guests have booked the property for special events, like anniversaries and birthdays, even a proposal.

She said while the income was great, hosting people for their special occasions was surprisingly rewarding.

"We put decorations out and try and customise it to each guest," she said.

"As you can imagine, it's really fun setting up for different things like that."