Hawaii’s hotels are doing well in spite of Japan’s disaster and the incumbent loss of visitors. While Japanese tourists were down nearly 20% in March, as I’d predicted earlier, the overall monthly occupancy increased by nearly 5% to end at 75%. Oahu led the state at nearly 80%. It was definitely a rocky month for Hawaii, with bookings surging pre-tsunami, then briefly crashing, post-tsunami.
High Demand Means Rates are on the Rise
Among U.S. and Canadian visitors, demand for Hawaii is on the rise, as I suggested would be the case last Fall. For every reason you already know, Hawaii remains unequaled in destination appeal. As a result, average hotel night costs were up nearly 10% in March, to $190, second only to New York City. In terms of occupancy rates, Hawaii is second only to Miami.
What You Can Do To Cope With the Increase
1. Lock in hotel plans as soon as you book air.
For example, this past week we saw great airfare deals from the entire West Coast on four carriers. These deals were primarily for the Fall season. Booking a hotel that far in advance gives you the advantage of early booking sales and other favorable deals.
2. Negotiate with the property directly.
For your best deal, it still never hurts to call the hotel directly and try to obtain the most favorable rate. The loss of tourism suffered over the past few years is still fresh in the minds of Hawaii hoteliers, who are loathe to let any bed go empty. Remember that kind, gentle persistence almost always pays off. Avoid online travel agencies. This is complicated, inasmuch as they negotiate complex agreements with hotels. Remember, however, that Expedia and the like charge hotels up to 30 percent or more of your total booking.
3. Try last minute when when booking in advance doesn’t work out.
The 90 days prior to your stay are still the time when travel providers lower the price of any unsold inventory. Use that to your advantage in order to work the best deals for hotels, activities and car rentals. Last minute is also the best time to use sites like Priceline and Hotwire.
4. Avoid peak travel dates.
Plan your Hawaii vacation during shoulder and low season whenever possible. You can expect to find the highest rates at certain times of year. So for the rapidly approaching summer season, avoid mid June through early August if you can. Hawaii may even return to sold out dates during that time. The best summer travel dates are mid August and beyond. There will probably also be some airfare price drops for that time frame, although that may not happen for another month or more.
5. Look for Hawaii vacation packages.
Pleasant Holidays is one example. We continue to get reports from readers of better deals achieved through packages that combine hotel, car or both, together with airfare.
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ed (1 year ago)
Living on the east coast, the main vacation destination for alot of vacationers is the coastal area of North Carolina, or the Outer Banks.
This vacation destination can only be reached by car…there are no trains or planes that travel to this location, and while there are some busses, I wouldn’t want to travel on one to get there. On average it takes just over a tank of gasoline to get to the barrier islands…so figure for a week, just over 3 tanks of gas to get there, drive around and get back home…At $60/tank, this is $180 just to drive to and back. In season, it’s impossible to stay at any hotel for under $2,500 for the week, or $5,000 for a beach house…
Doing the math, it’s cheaper to fly to Hawaii than it is to stay at a beach closer to home!
Jeff (1 year ago)
Thanks Ed.
I always look forward to getting your input. Those of us living here feel the same way about the cost of driving around in the islands, with our near $5/gallon gas.
Aloha,
Jeff