Airbnb and Hawaii hotels are at odds, each guarding their island turf in the state’s most competitive and important travel industry. Hotels see vacation rentals as rule-breakers that need to be controlled or eliminated. Rental owners view hotels as out-of-touch, price-gouging entities. Both work hard to keep travelers in their corner.
Now, that could all be changing. In a move that surprises some, but not BOH, Airbnb says it wants major Hawaii hotels on its platform. CEO Brian Chesky tells investors that the company is “going significantly more aggressively into hotels” and is already in discussions with properties around the world.
For now, they seem to be targeting independent hotels, boutique properties, and bed-and-breakfast accommodations rather than the big-box hotel chains.
This is a plan that could put some Hawaii hotels and vacation rentals in the same online shopping aisle for the first time. That means a visitor searching Airbnb for a beachfront cottage on Kauai might also see a beachfront resort at Princeville pop up as another option. And that has the potential to spark competition over pricing and perks that Hawaii travelers have not seen in years.
“We are going significantly more aggressively into hotels,” CEO Brian Chesky said during Airbnb’s Q2 2025 earnings call. “We have spent a lot of time looking at hotels as a business. We think it is really compelling, and we believe there is a lot more we can do with hotels on Airbnb.”
Why this matters for visitors.
If you are planning a Hawaii vacation, more hotel listings on Airbnb can mean a very different booking experience. Imagine scrolling through properties in Wailea and coming across a traditional vacation rental situated adjacent to a hotel.
The most obvious potential impact is price pressure. Hotels may need to sharpen their rates or add extras to compete with nearby rentals shown in the same search results. For travelers frustrated by high resort fees, cleaning charges, and exorbitant nightly rates, this is the moment to compare apples to apples.
On the other hand, hotels can also view this as a way to fill rooms via Airbnb without lowering prices, especially during peak season. The question is whether this new competition actually lowers costs or offers more choice.
How Hawaii hotels might benefit.
For Hawaii hotels, Airbnb can open the door to millions of potential guests who might never choose to click on a hotel’s own branded website. For smaller properties, that kind of exposure can be a lifeline. A boutique Hawaii hotel on Kauai or the Big Island can suddenly show up on phone screens from Boston to Paris.
It also puts hotels in front of travelers who have not yet decided whether to book a vacation rental or a hotel. In the online booking world, that is the most prime of digital real estate.
Reaction from Hawaii hosts.
Hosts in Hawaii have expressed mixed feelings about the idea. Some say the extra competition will push everyone to improve their product and pricing. Others worry that Airbnb in Hawaii may favor hotel listings in search results because they bring consistent bookings and fewer disputes over things, including refund policies.
Given the time and investment hosts have made to comply with Hawaii’s strict vacation rental laws, the idea of competing head-to-head with hotels on the same platform may not feel like a fair fight once again.
Could this start a price war?
It all comes down to how hotels play the game. In other destinations, when hotels are listed alongside independent properties, rate parity agreements often maintain consistent prices across booking sites. In other words, just showing up on Airbnb does not automatically mean lower rates.
Still, hotels might roll out targeted discounts, loyalty perks, or package deals to catch the attention of guests browsing this new marketing platform. If that happens here, travelers could see sharper rates or better offers, especially during the shoulder seasons or mid-week, when more Hawaii hotel rooms are available.
In high season, the effect is likely to be smaller. Hawaii hotel rates already climb steeply in summer and during the winter holidays. When occupancy is strong, there is little motivation to discount.
The regulatory twist.
Hawaii’s strict short-term rental rules are a big reason this move matters. By adding hotels to its listings, Airbnb can remain relevant even in counties where vacation rental supply has been reduced or could shrink further.
That will not go over quietly with everyone. Lawmakers and residents have spent years trying to rein in the platform. Hotels, for their part, have long painted themselves as the regulated, tax-paying alternative to short-term rentals. Now, appearing side by side on Airbnb could blur that line in a way we have never seen before.
What to watch next.
Hawaii visitors can watch for a few telltale signs in the months ahead:
- How many Hawaii hotels start showing up on Airbnb, and in which locations.
- Whether hotel rates and offers on Airbnb match, beat, or exceed what is posted on the hotel’s site.
- If hotels tweak their fee structures on Airbnb to look more competitive next to vacation rentals.
- How cancellation and refund policies stack up between hotels and vacation rentals listed on the platform.
The bottom line for Hawaii travel.
Airbnb’s move to bring Hawaii hotels onto its platform could be one of the most significant lodging changes here in years. It may put hotels and vacation rentals into direct competition in a way we have not seen before, while giving visitors more options and possibly a break on prices.
It might also shift the relationship between two sides that have been sparring for more than a decade. Whether that turns into cooperation or just a different kind of rivalry is something we will be watching closely.
For now, the smartest move is to keep shopping around. Check Airbnb, hotel websites, and other booking platforms. Watch the fees, look closely at what is included, and weigh location and amenities against the sticker price. The best value is not always the one that looks cheapest at first glance.
If this plays out the way Airbnb hopes, your next search could have you deciding between a Waikiki resort, a Hanalei inn, or a legal Kihei vacation rental without ever leaving one website. That would be something new for Hawaii travel, and we will be here to see how it goes.
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Airbnb is just a fill in the blanks computer template.
Maui does not have the manpower to confirm an advertisers existence.
Some countries have ban them and a few try to regulate them.
Why risk your vacation ?
Interesting approach that reminds me of the Starbucks and Peets coffee model, wherein they place coffee stores within 1 block of one another, sometimes across the street. The area becomes known as the destination for coffee. Cross branding can lead to good experiences for the location and guests. In our short-term rental, we provide a hotel pass in addition to them already having our home access to two pools and a beach club. Likely a good business model for AirB&B too. Now for other issues….nonstop flights to the islands are less…..
Our in-laws have time share points and they have been generous with them. If it were not for that, we’d not likely consider Hawaii, even though I personally love going and we’ve gone on our own dime in our past (our honeymoon was in Honokowai). The economics will reach equilibrium, and then the government of Hawaii will perturb the system to force changes. Too bad that the only losers are locals and local businesses. But if Hawaiians keep voting in democrats, they’ll keep going down a path that doesn’t look like it’ll end good. But That’s the reason Hawaii is in the spot they’re in. They need to keep up hope that the US government doesn’t stop paying as much in needs based benefits to the islands they already do. If that happens, and I personally think it should, I’d then hate to think of the possibility that Hawaii will be done.
Maui does not have enough water for all the residents and tourists.
Upscale hotels won’t be affected. Their regular and loyal clientele has sufficient financial means, therefore no good reason to use Airbnb looking for a bargain. On the other hand, will this affect cheaper and less desirable hotels which in turn may find this detrimental to their already waning profits?
Some hotels are left out from some OTA’s selections so
air bnb’s will pick up this grey area. Some may not offer pools if it isn’t some big corporate chain but gives the tourist’s more options. I don’t honestly think prices will lower because you not only pay for the room but the amenities, ambiance, booking experience and the 24/7 front desk person being present in a major hotel resort property. You have to remember there is no corporate number to address and issue if you are charged for some unexpected wrongful mistake on your credit card. How much security do small hotels have? Some people think quiet and private in some small hotel is priceless but what if you have a problem?
In our area of the Northeast US AirBnB already has small boutique hotels on the platform when they list their own rooms. This allows the double plus exposure for potential customers. The great thing about hotels is they’re regulated for safety far better than 99% of private home/dwellings.
As a 41 year owner of a travel agency, I’ve seen scores of changes in the hotel and condominium rental industry. My experience is that a clients knows if they want a full service hotel or a bedroom with a kitchen. Then comes price. Over the years, Hawaii has priced themselves out of many travelers budget. Mexico and other Central American beach destinations attract many beach goers because of price. It’s hard for Hawaii vacation rentals to compete in price because taxes and fees are so high. I know, I own a 2 bedroom condo on the big island. Since 2021, the sales tax and bed tax has gone up 4% (new raise effective Jan. 2026) with the counties talking about increases, too. Property tax for non resident owner are well over $10,000 a year, plus the HOA fees and increase in insurance since the Lahaina fire are 25% higher. And where is the destination marketing for Hawaii? It Visit Hawaii marketing has disappeared and is lost in the sea of 7 day cruise advertising.