We learned recently that MLT Vacations has signed an agreement with United Airlines to sell bulk inventory to Hawaii. While MLT may not be a familiar brand, they are the company behind Continental Vacations, Delta Vacations, United Vacations and Worry-Free Vacations.
At the same time, it appears that Pleasant Holidays is no longer selling United Airlines bulk inventory and may instead be embarking on a deal with Alaska Airlines. Alaska is seeking to aggressively expand its presence here in Hawaii, and this is a great way to do it. As you know, Pleasant is the largest provider of Hawaii vacation packages, which include airfare together with car rental and/or lodging.
So what’s bulk inventory? Those are seats on specific routes bought in relatively large quantity. Bulk seat deals give vacation packagers access to consistent, reasonable airfares while giving the airline guaranteed revenue on seats they may not expect to sell otherwise.
In a brief, non-scientific comparison of Pleasant Holidays and United Vacations pricing from California, I found that Pleasant Holidays was either cheaper than or equal to United Vacations, depending on the dates and cities selected.
What does this mean to you?
In the short term, we have not seen any of the incredible last minute deals from Pleasant Holidays for over a month and these may sadly have come to an end. The fact is neither Pleasant nor United could afford to sell round-trip Hawaii deals in the $200 to $300 range.
In the longer term, Alaska is certainly poised to pick up more steam. I still expect to see Alaska Airlines jump into the Hawaii inter-island business, together with continued expansion of their mainland to Hawaii services. And all this should happen in the not so distant future, before Southwest arrives in Hawaii next year.
Do you have any thoughts on these changes?
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Kathy (1 year ago)
It can’t happen fast enough, I just had to pay$1400 for 2 tickets from Lax to Hilo in May. Added to that we are traveling on Business and we will need to bring a full complement of bags both directions. Now we are talking over $1600 for those tickets. I have always been a strong shopper getting great trips to Hawaii at reasonable prices … Not this time! All I can say is WELCOME SOUTHWEST, ALASKA AND ALLEGIANT!
Paul (1 year ago)
The tour operators don’t always have a block of seats, but rather they have permission to issue a ticket in a given class of service at a lower fare when combined with a prepaid package that includes hotel and/or car rental arrangements, United pulled their lowest class of service they offered most tour operators back in the middle of April.
Surprised to see the United/Pleasant deal fall apart as they were joined at the hip for years.
Many of these tour operators don’t sell direct to the public, so one needs to book through a travel agent.
These air/land packages typically must be purchased at least 7 to 21 days prior to deaprture at the very least. Like all discount fares, the seat allotments are controlled by the carriers, with additional inventoiry being made available on days that are not selling. While the air portion of the trip often does not have to be paid fore until 30 days out, the fare is never GTD until ticketed.
This makes you wonder who Southwest is going to hook up with when they start service.
Jeff (1 year ago)
Mahalo for your comments.
It is definitely a different time and economy Kathy. We are slowing and unwillingly getting used to much higher airfares. There are great sales and this week we had plenty of them. But when there aren’t sales, it is shocking.
Thanks Paul for your insights. Yes, PH and UAL have been together as long as I can remember as well. They had bulk seats or they wouldn’t have needed to sell the unsold last minute inventory themselves. While tour operators like Pleasant have traditionally sold almost exclusively through travel agents, that is changing rapidly.
Aloha, Jeff
Jimbo (1 year ago)
What about a charter service that maybe could book out an airline for a decent price, say 400 rt. from LAX or other major airport to a certain destination in Hawaii (most likely Oahu or Maui. They could fill it with “cruise” passengers or groups and maybe fly once a Week, depending. Then those of us who could use a service like this could all get to Lax and board and go affordably. What a concept.
Holly (1 year ago)
Bring it on Alaska Air. Checking all the airline deals and falling short. Will Alaska have any direct flights?