Napier City Council is reviewing the future use of its Deco City Discoverer buses.
A report which will go before Napier City Council's Finance Committee next week recommends the two customised Art Deco-style buses be put up for tender.
Napier City Council CEO Wayne Jack said it was clear the business model had not gone as well as anticipated.
"The council had advice from a leading transport consultant that these buses would be an asset," Mr Jack says.
"That is proving not to be the case, despite our best efforts. While the feedback from people who have used the buses is really positive, the traveller numbers are not high enough and therefore it is timely to look at options for the buses."
The buses, which began operating last April, have also been affected by reliability issues - resulting in higher than anticipated maintenance costs.
"Due to the low level of demand, our income is well below budget. We need to move forward and this report is providing some options on how we do that."
The report will go before the Finance Committee on Wednesday 26 March at 3pm.