Nov 20 2008

What To Expect In A Hawaii Recession

Published by Jeff under Travel tips

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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Nov 19 2008

Obama Touring In Hawaii

Published by Rob under Culture and Events


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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.

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Nov 18 2008

Beat Of Hawaii Site Upgrade

Published by Rob under X-pired; "Pau"

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

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Nov 18 2008

Hotel Occupancy To Drop And Deals To Reign

Published by Rob under Hotels and Resorts

A report out today from Price Waterhouse, and based on Smith Travel Research data, is forecasting a decrease in hotel revenue (per available room) of nearly 6 percent in 2009.

What it means for travelers:

As a result, hotels are widely expected to offer greater discounts on a regular basis. While this is bad news for the hotel industry, it represents another glimmer of light for the beleaguered travel consumer.

Here in Hawaii:

An over-abundance of Hawaii hotel rooms in relation to the number of visitors will likely create an even worse situation for accommodation providers, and a better situation for visitors.

Hawaii visitors are likely to be in an enviable position of practically naming their price.  That should be true on all but the most heavily traveled days of summer and holiday periods.

Since higher end hotels and resorts will continue to offer exceptional values, typically lower-priced accommodations including condos, and vacation rentals will be squeezed to either further reduce pricing or withdraw from the market.

Two of the hotel deals we recently featured were examples of unusually heavy discounts.  First was the Westin Princeville Ocean Resort Villas.  At $199, the pricing is far below anything anticipated for such a prime new location.  The very high-end Maui Grand Wailea, at $175, was another exceptional and unprecedented value.

Look for many more hotel (and airline) deals to come.  For those ready to vacation in Hawaii, the present and near term values are something we haven’t seen in nearly a decade.

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Nov 17 2008

Inter-Island Airfare War Escalates

Published by Jeff under Airline and Ship Deals

Updated 11/20:

1.  Mokulele, Hawaiian and Go! have extended the $45 fare validity for flights through December 31.  While the fare was due to expire on 11/19, it remains bookable.

2.  Island Air has joined the fare war in a very limited way:  $99 roundtrip fares from the outer islands to Honolulu, no bag fees and a $20 rental car from Budget. Outbound and return flights must be on same day. The offer is valid on December 1, 2, 3, 4, 8, 9, 10, 11.  Purchase by November 21.

3.  Look for the validity of these offers to be further extended and for the likelihood of more price reductions.

In a Hawaii-style poker game, this morning Mesa’s Go! Airlines joined the fare war and raised the stakes a bit. That was immediately followed by Hawaiian Airlines announcing ongoing $45 one-way fares on selected days and flights.

This is terrific news for holiday travelers to Hawaii, inasmuch as the Go! offer extends through December 31 and the Hawaiian offer is ongoing.  It will undoubtedly be joined by Mokulele, and is likely to get even better.

As I indicated would happen, this started over the weekend when newcomer Mokulele announced a $45 fare good through the end of November. Hawaiian matched that fare yesterday.

The Go! offer:

  • $49 one-way between Honolulu and the outer-islands
  • Book by November 19
  • Travel November 17 through December 31
  • Limited availability

The Hawaiian offer:

  • $45 one-way between Honolulu and the outer-islands
  • Limited Availability by day of week and flight
  • Use weekly (not monthly) schedule to find this offer

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Nov 17 2008

Hawaii Rain, Seasons And Weather

Published by Rob under Culture and Events

We’ve just entered our first rainy period since last Spring.  The weather is cool at night by Hawaii standards, high 60’s, and the rains are consistent.  These conditions are forecast to continue through the rest of this week, if not longer.

What does this mean for your Hawaii vacation?  Between November and April expect at least one month of rain.  That averages to 15 percent of the time in those six months.

The rain is a love and hate thing for me, inasmuch as I know that we need it. This is what keeps Hawaii beautiful, fills the reservoir, and keeps Muley’s grass growing.  At Beat of Hawaii’s headquarters on Kauai, we typically get over 100 inches of rain annually.

On the other hand, during these weather conditions, it just isn’t the Hawaii that we or our visitors think of.  If it rains long and hard enough, the otherwise clear and beautiful ocean fills up with dirt and runoff, and becomes unswimmable.

Today’s rain started me thinking about the weather here in Hawaii and how we see it from a local perspective.  Our seasonal weather variations are quite unusual, as compared with the U.S. mainland:

  • Cool, “Ho’oilo” Season

September begins with cooler nights which then leads to cooler and shorter days.  It’s coolest from about December to March, before gradually returning to warmer conditions.  During this season you can expect an average high of 77 during the day and an average low of 62 at night.

  • Warm, “Kau” Season

From May to Labor Day, expect longer and hotter days and balmier nights.  During this season our average high is 82 degrees and low of 70 when the sun goes down.

  • Wet weather comes in two segments

The first in either November or December, and the second sometime between February and April.  The most common rainy months are November and March.  When these winter rains arrive, they are typically not geographically specific, and can equally impact all parts of all the islands.

  • Dry Season, May to October

Dry weather prevails the rest of the year, although dry doesn’t exactly mean dry.  Dry weather here includes “mauka” or mountain showers.

These rains, driven by the trade winds, typically cross the higher elevations from the northeast to the southwest of the islands, leaving the south and west sides warmer and dryer.  Most of the rain is deposited in the mountains and valleys, turning dry at the coast, which typifies our micro-climatic conditions.

It is often possible to have sun and warmth only a block away from cool and rain.  During these “dry” conditions, you can typically escape from any rain by heading to nearby drier areas.

  • Trade winds prevail more than 80 percent of the time

Typical Hawaii trades are based on subtropical high pressure ridges that bring cool winds from the north.  They also provide lovely clear conditions, and a cooling effect during otherwise warm periods.  Trade winds are also associated with dry weather and mauka rain conditions.

  • Still or south Kona wind

When the winds stop or blow from the south, which is less than 20 percent of the time, the weather here isn’t optimal.  In the winter it will tend to be cold and wet and in the summer, humid.  South winds are common during periods of heavy winter rains.  In recent years, Kona winds also allow the VOG to move up from the Big Island and cover the other main islands.

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