BEAT OF HAWAII AND BEYOND

I received this excellent offer in an email from Hyatt.

What makes it exceptional is that I was able to combine it with other Hyatt discount offers for far more savings.

• Book by December 12 and receive 21% off the prevailing rate for stays until February 1.
• Validity:  Hyatt hotels in the United States, Canada and the Caribbean.
• Offer Code:  LTGP07
• Advance purchase:  7 days in advance of arrival.
• Rate is prepaid and non-refundable.

Stranger things have happened, I guess, but this one is up there.  After allegedly stealing their information, and at least in part helping push them out of business, Mesa now plans to be the new Aloha Airlines.

Mesa Airlines announced today that it has settled its unfair competition lawsuit with the Aloha Airlines’ former shareholder.  The settlement provides for Mesa to:

• Pay $2 million in cash and issue new stock equivalent to 10% of its current outstanding shares.
• Provide unspecified travel benefits to prior Aloha Airlines employees.
• License the Aloha name from the shareholder if they are successful in purchasing it.

Yes, you’ve got that right.  According to CEO Jonathan Ornstein, Mesa’s intention is:

“Re-branding service under the Aloha name in the near future.”

History:

• Mesa, under the name Go!, entered the Hawaii inter-island market in 2006 and was soon charged with unfair competition by both Hawaiian Airlines and Aloha Airlines.
• To a large degree unrelated to Go!, Aloha subsequently went bankrupt, last Spring.
• Hawaiian Airlines was awarded a $52 million settlement in their litigation.

My thoughts:

• To add to the confusion, Mesa is in terrible shape and will likely not remain in business.  In other words, they are only slightly less dead than Aloha.  Their stock closed unchanged today at $0.20/share.  I’ve discussed this widely before, as have other industry analysts.
• Mesa, under any name, will not be well received in Hawaii.  The way in which they pursued the market left bad feelings in the state that will not be soon forgotten.  This move, unfortunately, is typically insensitive of Mesa.  It will likely cause more of the Hawaii resident inter-island traffic (which is significant) to align even more with competitors Hawaiian, Mokulele and Island Air.
• The Go! planes are the most uncomfortable jets flying in the Islands.  Their service hasn’t been well-reviewed (and I can attest to that).  That also has not helped matters.

Updated 4/17/09:  It was great news earlier today when the price has dropped to $388 on Continental’s non-stop from Newark to Honolulu.  This afternoon however, they raised it back to $535, which is still a great price.  The fare is inching up again and is at $400 from American, Delta, Northwest, and US Air. Delta/Northwest  has extended the validity for travel through June 25, while for the other carriers it ends of May 19.

This just in, right in time for Black Friday.  As the post-New Year deals continue to roll out, you can come to Hawaii for the most reasonable price imaginable.  Combined with our state’s best hotel prices in many years, this deal makes for a great Christmas gift.

A multi-airline fare competition, this even includes top-rated Continental on their typically more expensive Newark to Honolulu non-stop.

This fare is to Honolulu, and I found it varied by a few dollars from carrier to carrier.  Kahului Maui is also available for about $25 more.

I expect the fare validity (or other similarly priced deals) to be extended beyond February 8.

• Airlines: American, Continental, Delta/Northwest, United
• Airports:  JFK, LGW, EWR
• Dates: Travel through February 8, 2009
• Minimum/maximum days: none
• Availability:  Good but the dates and days of week vary (I used each airline site to find).

Alaska Airlines has just announced much closer ties with Delta Airlines starting in 2009.  It’s been widely rumored that this agreement will precede Delta’s plans to acquire Alaska.  After this news announcement, Alaska’s stock went up 19 percent yesterday.

What I believe this agreement and a likely acquisition will mean to Hawaii-bound visitors:

• Delta will become a dominant Hawaii player with flights from hubs in Los Angeles, Salt Lake City, Portland, Seattle, Minneapolis, Anchorage, and San Francisco.
• Better travel options and connections for Delta customers transiting via the West Coast.
• More flights to be added to Hawaii through Alaska’s Portland and Seattle hubs.
• Further reduction in competition between the West Coast and Hawaii resulting in increased cost of travel to Hawaii.
• Delta may add wide-ranging connections through Hawaii to new markets in Asia.
• Look for Alaska’s code-share partners to change.  In addition to Delta/Northwest, the current code-shares include American, Air France, British, Cathay Pacific, Continental, KLM, Lan Chile, and Qantas.

About the agreement:

The two carriers have signed an agreement in principle to become “preferred alliance partners” on the West Coast.

Delta’s CEO indicated:

1. Alaska will participate in Delta’s new long-haul trans-Pacific and Latin American routes from the West Coast,  with frequent flier and lounge reciprocity between the carriers.
2. Delta and Alaska will offer customers more departures and capacity along the West Coast than any U.S. airline.
3. Alaska is a perfect partner for Delta.  Their leading presence across the west coast will be paired with Delta’s expansive international network.  The end result is the growth of international air traffic from cities in the West.

Alaska CEO William Ayer added:

“Continuing to work with Delta – the world’s largest airline with the broadest global route system of any U.S. carrier – is a natural fit for Alaska and Horizon.”

Airline luggage fees has us all thinking that less is more.  There are still times, however, when I schlep luggage.  I’ve had my share of pulls and strains in the process.

In fact, Jeff and I have both had airport escalator accidents.  So take extra care when bringing rolling luggage on escalators:

• Mine happened as a new employee traveling with the boss for the first time.  I had our trade show materials in boxes and the contents spilled out down the escalator with me and my boss in pursuit.  The job lasted only a year.
• Jeff recently dragged two 50-pound wheeled suitcases onto an escalator at San Diego airport.  One bag caught against the wall of the escalator, throwing Jeff backwards onto the escalator.  While he luckily didn’t kill himself, he did fly back to Hawaii somewhat bloody.

I recently saw that the American Academy of Orthopedic Surgeons has recommendations to help prevent back injuries.

Last year, more than 50,000 of us were treated in hospital emergency rooms, doctors’ offices, and clinics for luggage-related injuries. This according to a statement by the U.S. Consumer Products Safety Commission.

How to avoid starting your Hawaii vacation with back strain:

Don’t carry a heavy suitcase for a prolonged period of time.  Pay the extra money for a luggage cart.

Exercise caution in lifting and holding bags when placing them in, and removing them from, baggage claim carousels, overhead or under-seat compartments.  Do I sound like a flight attendant?

Chances of an injury are much greater when a person has been sitting still for a long period of time (as when on a plane) and the luggage is over-packed and especially heavy.  I like to stretch first before lifting.

As with any heavy lifting, bend at the knees and lift luggage with leg muscles, not back and waist, and avoid shifting your spine.  Try to carry luggage as close to the body as possible.

When raising luggage to place it in an overhead compartment, first lift it onto the armrest or seat top.  Then lift it up into the bin.

When purchasing new luggage, look for a sturdy, yet lighter pieces with wheels and multiple handles.

If you have any tips for avoiding back problems when traveling, be sure to share your comments.

This morning I was pleased to find a $349 Pleasant Hawaiian Holidays offer from San Francisco to Honolulu which included January travel. Also listed is Maui at $399.

The deal includes 3 nights hotel and roundtrip airfare.  It was also listed today on Frommers “Smart Deal of the Week,” among other websites.

No matter how hard I tried, however, I was unable to replicate this offer or anything remotely close to it, either to Honolulu or Maui in January. Deals come and go quickly, but in this case, I’m just not sure what to make of it.

Was anyone else able to get this deal?  I’ll try again later and see if anything becomes available.

This would be a good deal at this point, inasmuch as the January airfare sales we’re expecting from the west coast haven’t really materialized yet.  Most airfares from SFO to HNL are $360 right now, which is fair but not great.  The only better deal is $260 if you buy on Hawaiian and get a $100 future travel voucher.

The four Matson Navigation ships carrying fresh cut Christmas trees are arriving.  The first arrived on November 15, and the final ship will arrive on December 6.  While the total number of trees shipped is unknown, Matson says that they transport more than 100,000 Oregon and Washington grown trees each year.

The trees typically go on sale in Hawaii the day after Thanksgiving, following inspection by the state’s Department of Agriculture.

Christmas trees in Hawaii are problematic:

• In order to get here, nearly 3,000 miles from where they are grown, they spend about two weeks in temperature controlled ocean transit.
• The warmer weather here in Hawaii means trouble.  Pines typically start losing their needles soon after arriving, and well before Christmas.  I for one don’t like a living-room full of dropped pine needles.
• Last year, several container-loads of Christmas trees arrived with unwanted guests.  A variety of yellow jackets unknown in Hawaii, was found in the trees.  Some of the trees were sent back to the mainland while the remaining ones had to be individually inspected and recertified prior to sale.

The only Christmas trees actually grown in Hawaii are Cook Island Pines and Leyland Cypress, which while beautiful, are definitely not traditional fir trees.

After years of trying, we’ve now opted for a permanent General Electric tree, repleat with 1,500 lights.  It just works better here in Hawaii.  We supplement that with real tree branches which we usually pick up for free at Home Depot.  Those provide the smell of fresh trees, and it is much more manageable than a large tree dropping needles all over the model train track.

When we see the trees later this week, we’ll update this with average costs and some photos.

In a nutshell:  The deals offered are not very good.

I received an email from NWA today with a seemingly good fare sale between the Mainland and Hawaii.  The offers are valid for travel through February 8, if you purchase your tickets by December 16. They’re even throwing in 3,000 (relatively worthless) bonus miles.

The problem is that from checking their site, I could not find any availability over the Christmas/New Year holiday times.  Inasmuch as most of the other deals we’ve recently written about have validity through mid-December, this offer is really for January travel to Hawaii.

Given that we’ve already said we expect very low tourism until June 2009, with the possible exception of the upcoming holidays, these deals just aren’t good enough.  If the airlines intend to maintain their routes at current levels, significantly better offers will be required.

Tip:  If you intend to come to Hawaii after the holidays but before June 2009, just hang tight.  There will be better deals to come.

Here’s my take on the upcoming 2008 holiday travel season:

Even though most airlines have reduced their Hawaii service and Aloha and ATA have gone out of business, there’s far more availability than is normal during the holidays.  In the past there have been many sold out travel dates by this time for Christmas holidays.  This year it’s still wide open.

There has also been far more variability in holiday airfare pricing this year than in the past.  Some of the amazing airfare deals we’ve recently written about had holiday dates available for under $350 RT.  I’m still finding some $500 airfares over Christmas as of this week.

If you want to come to Hawaii for the holidays but haven’t booked yet, the deals are getting more difficult to find as the airlines are hoping you’ll pay premium holiday prices.

Most of the current fares are in the $700 to $800+ range from the West Coast to Hawaii over prime holiday dates.  That price is very similar to last year.

Tip:  I wouldn’t put anything past the airlines, and the pricing rules of the past no longer apply.  If airlines don’t sell their prime holiday seats soon, they will either inch the prices down again, or we’ll see more wide-spread fare sales.

If you’re flexible with dates, and haven’t booked yet, you may want to wait and see what happens.  For travelers who aren’t as flexible, I suggest you book now.

Let me know how you “fare.”

If at all possible, consider a dramatically price-reduced Hawaii vacation between now and next May.

Why? You will not see these values again, probably ever.  Without the crowds, this is truly the idyllic Hawaii of yesteryear.

This isn’t the first time I’ve pondered the economy and how it impacts those of us who live here in Hawaii as well as visitors coming on vacation.  Here are some additional thoughts:

1.  What deals will you find and how should you shop differently for a recessionary Hawaii vacation?

• Monitor for deals closely and be ready to pounce. If you have the flexibility, make it a relatively last minute vacation.  That will provide by far the best values in both air and hotels.  If you aren’t that flexible, you’ll still find unprecedented deals.
• Generally don’t buy a package.  In most instances, you’ll do better if you shop the airfare and accommodation deals separately.  Cut out the third-party online travel agencies, and go to the source.  Buy air travel from airlines, car rentals from car rental companies, hotel bookings from hotels directly, etc.
• Consider higher end properties.  These are the truly exceptional deals right now.  As I’ve said previously, don’t hesitate to call the hotel and ask if they can do any better on the price than the best deal that you’ve already found.  Chances are that between now and next summer, they can and will.
• Consider lower end properties too.  These deals are so cheap that they can seem to be too good to be true. We’ve seen reasonable accommodations in the $50/night range, and very nice rooms for under $70.  I’ll keep looking for and reporting on more of these.
• Negotiate excursions directly with tour providers.  If you’re too shy to do it yourself, have someone else call for you.  Try offering 50% of the asking price.  Maybe they can squeeze you in at the last minute if no one else shows.  Hawaii excursions have been very expensive and they are often the first thing to be cut on a budget vacation.  So this is a chance to get that helicopter ride or zipline tour at a highly affordable price.
• Gas prices are down.  Today we paid $2.30 a gallon.

2.  What is likely to happen next?

I expect the economy in Hawaii to stay at its current recessionary level or get worse over the next 6 months.  We’ll see visitors numbers continue to drop (down 9% so far and expected to drop another 5% next year) and have higher unemployment (now 4.2% and going up to perhaps 5.5% next year).

The first likely opportunity for improvement in Hawaii’s economy is summer 2009, and my guess is that any improvement then will be minor.  Therefore, next summer might bring somewhat higher air, hotel and car rental prices.  By next Fall though, they will likely decline again.  In the following year, 2010, I think we’ll start to see growth returning.  All of this is based of course on the larger national economy not sustaining any further dramatic events.

3.  Hawaii 2008 economy in review.

What has happened so far this year is a series of concomitant negative blows that have included:

• Aloha and ATA Airlines going out of business.
• NCL removing two of the three ships doing 7-day inter-island cruises.
• Inter-island transport issues of high airfare costs and multiple Superferry problems.
• A decline in disposable cash among both visitors and residents.

4.  What other things might we expect to see happen in Hawaii’s recession?

I don’t have a crystal ball, but here is some of what I see looming out there:

• Superferry is likely to cease operations.  They have too high cost, too few riders, a rough winter ocean ahead, and an upcoming decision about a complete environmental impact study, among other problems.
• Go! Airlines will probably fail.  Mesa Airlines (Go!’s parent) is not looking like they can stay in business.  I believe we’ll know by the Spring, which is traditionally when weak airlines fail.
• NCL may pull their last ship from Hawaii, resulting in no inter-island cruises.

I feel certain that we will be bringing you previously unimaginable Hawaii deals between now and next summer and I hope that you can be some of the lucky ones to take advantage of them.  Sign up so that we can drop them in your mailbox or reader.

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Obama is all the rage.  Many people plan to capitalize on the new president’s long-tailed roots.  There have been articles already written about tours in Africa and Chicago.  Now comes a new entry to the mix, the Obama Tour Hawaii.

Since the places where Obama lived and went to school in Hawaii are on private property, why not create your own tour with a map and rental car?  Here’s my take on both options.

1.  Their tour:

The website claims the tour features “stories of childhood friends, teachers, and coaches.”  When I called to inquire what that meant, I was told that interviews had been conducted with those people for the tour.  There was no mention who these people are and their relationship to Obama.  Also keep in mind that the tour will drive by many locations.

The site claims that they have been “serving the visitor industry since 1992.”  It’s true.  Mitch also operates Hiking Oahu Hawaii.  I remember meeting him in the ’90’s when he hawked tours from the top of Diamond Head.

If you want to try the tour, it stops in downtown Honolulu, Chinatown, and at the Punchbowl National Cemetery of the Pacific where Obama’s grandparents are buried.

The cost is $49 (kids $39).  It operates daily from 1:00pm-3:30pm and includes pickup at selected Waikiki hotels.

2. Self-touring Obama Hawaii.

If you are somewhat skeptical about this tour, or If you aren’t the tour type, you definitely needn’t miss out on President-Elect Obama’s Hawaiian roots on your next trip to Honolulu.

Here are Barack Obama’s family residences in Honolulu, together with Google Mapping to each.

6085 Kalaniana’ole Highway.  Barack’s home, where he first lived in 1961.

1427 Alexander Street, Apartment 110.  Grandparents’ home from 1962 to 1963, where Barack and his mother also sometimes lived.

615 Eleventh Avenue.  Father’s home from 1960 to 1962, although the building is no longer there.

2234 University Avenue.  From 1964 to 1967, this was the home of Barack, his mother, and grandparents.

2277 Kamehameha Avenue.  In 1963, Barack’s mother lived here while she attended college.

1617 South Beretania Street.  From 1971 to 1979, Barack lived in this apartment building with his grandparents. This is where his grandmother lived until the time of her recent death.

1839 Poki Street.  Barack’s mother and younger half-sister lived here from 1974 to 1976.  Obama lived there sometimes as well.

You can also drive by Punahou School where Barack attended grades five through twelve.  It’s at 1601 Punahou Street.  Entry to the campus is limited during school hours.  You can buy a Punahou T-Shirt on line if you can’t visit the campus.

What do you think?  Would you pay $49 for the Obama Tour Hawaii or create your own?  Do you feel that it’s an invasion of privacy?  Let me know your thoughts.

Updated 11/18/08 PM:  Upgrade complete.  Thanks for your patience.

Today we’re in the process of upgrading our website hosting, in order to better handle additional visitor traffic.  We have tried to work though all of the potential issues, and are hopeful of no downtime.  Aloha and mahalo, Rob and Jeff