We are all bracing for some unprecedented holiday Hawaii travel issues, not the least of which is Hawaii hotel prices. Here’s what’s going on as of October 25. As for the prices above, $913 is the average price of hotels in South Maui, while $251 is the average price of vacation rentals statewide. Overall, there are some glimmers of light, so read on to them.
Hawaii vacation rental demand is surging. The reasons are obvious. Right out of the gate, the high price of Hawaii hotels as shown below combined with hotels’ limited staff, and facilities, among other issues. Add to that having your own Hawaii vacation home or condo with a kitchen and little to no interaction with others needed.
Beat of Hawaii: This is a time when we are all rethinking travel. Being in greater control of our travel environment is going to remain key going forward. Put that together with most of us seeking a value paradigm, and you can see why Hawaii vacation rentals are uber popular.
Hawaii Hotels.
It was eye-opening to see the state’s most recent Hawaii Tourism Authority (HTA) hotel report (August 2021). What we found was that average hotel rates were up dramatically. You’ve already been saying that in many comments.
We use 2019 as the comparison year for pricing since 2020 was not applicable due to COVID. The Hawaii Hotel Performance Report published by HTA showed the average daily rate statewide had climbed significantly since 2019. Details are below. Taxes on Hawaii hotels and vacation rentals are a whole different matter.
The hotel survey includes 85% of all Hawaii hotels, including full service, limited service, and condominium hotels. Hawaii Vacation rentals and Hawaii timeshares were not part of that survey and are listed separately below.
Overall, “luxury class” properties had an average daily rate of $823, up 43% compared with 2019. “Midscale and economy” properties had an average daily rate of $288, up 68% vs. 2019.
Also read Next Big Tourist Problem: Hawaii Hotels And Filthy Rooms
Maui heads the pack with Hawaii hotel prices up 52% hefty daily rates.
Maui hotels had an average daily rate in August of $596, up 52% vs. 2019. The South Maui Wailea resort area was even higher, with an average daily rate of $913, up 46% compared with 2019. The West Maui area, including Lahaina, Kaanapali, and Kapalua, had an average daily rate of $491, up 51% compared with 2019.
Big Island hotels.
Hotels on the Big Island reported an average daily rate of $385, up 37% compared with 2019.
Kauai hotels.
Garden Island hotels had an average daily rate of $357, up 26% compared with 2019.
Honolulu hotels.
Oahu hotels had the lowest daily rate and were the only ones to decline since 2019. The average was $245, and that was down 4% vs. 2019.
Hawaii Vacation Rentals.
How the Hawaii vacation rental trend began.
It’s interesting to recall that although Hawaii vacation rentals have become popular across all demographics, the trend primarily began with younger travelers and those with higher incomes. Those who try Hawaii vacation rentals, largely don’t return to hotels. That according to a Goldman Sachs study, that indicated trouble was already brewing for the hotel industry.
Hawaii vacation rentals as change agents.
BOH: We have preferred Hawaii vacation rentals, when compared to Hawaii hotel stays of more than a couple of nights. We obviously aren’t alone. Things we consider about Hawaii vacation rentals include reduced costs and convenience through kitchen and laundry facilities, less contact with other travelers and staff, and automated/keyless check-in and check-out.
Note: As a reminder, please only stay in legal rentals in designated tourist areas in Hawaii. Staying in illegal rentals is problematic at every level, including no help for guests when things go wrong. Hosts should post the rental Tax ID on their listing.
Hawaii vacation rental report. Prices remain moderate overall.
The most recent state report on vacation rental performance is for July 2021. In that, there was a statewide decrease in average daily rates compared with 2019. The average daily rate for vacation rental units statewide was $251, an increase of 21% compared with 2019. That remained 32% lower than the average daily rate of $368 for Hawaii hotels that same month.
Maui vacation rentals.
The average daily rate was $282, up 20%, vs. 2019. That was 54% less than Maui hotels’ average of $618.
Honolulu vacation rentals.
An average daily rate of $203 was 22% less than hotels’ $259 average.
Big Island vacation rentals.
Hawaii island rentals had an average rate of $206, which was 45% less than hotels’ $375 rate.
Kauai vacation rentals.
Rentals on the garden island had the highest daily average at $321, which was 13% lower than Kauai hotels’ rate of $369.
Please add your thoughts to the many comments below.
Post updated 10/25/21.
Photo at Waikiki Beach.
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Rickesh P. says
People are just realizing hotels are the lamest way to experience Hawaii 😂 👏🏽 👌🏽
JLC says
I would rather stay in a vacation rental than a hotel or resort any day! As a resident visiting our Grandkids this last summer, our last visit to Oahu was a nightmare! The cost for just a 4 night stay was ridiculous to say the least, it was crowded, no daily room service, everything cost extra, not kitchens, no laundry, nothing, you had to pay for everything!!! Never again!!
Ed. C says
We moved from the Waipouli Beach Resort in Kapa’a to the Grand Hyatt in Poipu yesterday after we decided to stay a few more days. Our 2 bedroom 3 bath with full kitchen at WBR was only around $300 per night. The hotel room here at the Grand Hyatt is $729 or 25,000 Hyatt points per night (I went with the points option, duh… 🙄) and this room is about 1/5 the size of our condo at WBR. While the Grand Hyatt is nice, we will continue to make WBR our Kaua’i home away from home.
Douglas E. says
I stayed at The Queen Kapiolani Hotel last week for 4 nights in Honolulu. Less customers than years past, but great service and I did not notice any lack of staff.
Rae-Marie M. says
As a vacation rental owner, I thank you for this. So many reasons why vacation rentals provide a better experience than a hotel, especially now.
Adi h says
All this stuff happening in Hawaii makes me not want to go there anymore.
There are other places to go
Sandy B. says
We love Hawaii and have visited many times but I fear our planned visit this November May be our last. Hawaii is managing to out price themselves. We have always been generous in our tipping and supporting things Hawaiian. We have always been respectful of the land, ocean and all living things we encountered when visiting. It makes me sad to think the people do not really want us to visit unless we are very wealthy. It is not the wealthy visitor who helps support your everyday economy. It is the average person who buys tickets for tours and presents to take home and has memories for a lifetime.
MaurW says
The times I have stayed in a hotel are only international trips, and included in a full escorted tour package. All of the other times that I have travelled, I have used Airbnb or VRBO. I love having the convenience of a full kitchen, saving the cost of eating all meals out, more space to move around and to get a little more privacy. Have never had a problem obtaining a refund. I had to cancel two planned trips and reservations due to covid. I always look at the cancellation policy before anything else. Some are very generous, i.e. a week before arrival date, some are 30 days. And being able to view the pictures and read all the reviews is really helpful. No hotel stays for me!
Glen M says
Just came back from HNL. Stayed at an Air B&B on the quieter side of Waikiki (near the Zoo) about a block and a half from the beach on the 17th floor with ocean view balcony.
I loved it. For 5 nights, it was $968 total (taxes, air b&b, cleaning fees included).
No ridiculous and expensive “resort fees.”
A full kitchen in the condo and a laundry room down the hallway.
The condo was spotless and the furnishings in excellent condition when we checked in via lockbox. Parking was only $10 per day (versus the $35-$50 hotel daily self park rate).
I’ve only Air B&B’d twice before, a few years ago, but this visit was a game-changer for me. Vacation rentals in Hawaii will be my first choice from now on.
Dot S. says
When I am on vacation, I want a home away from home. We have done home rentals everywhere we’ve traveled and have never had a problem. Our hosts have been more than gracious and accommodating. When we’ve stayed in hotels, I feel we’re on top of other visitors and sometimes snubbed by staff because other visitors are spending big bucks (mostly bar!). It never fails the noise level can go through the roof at a hotel because of boisterous groups.
I hope the hotel price increases don’t affect house rentals.
DebraM says
Aloha Rob and Jeff. Have mainly used vacation rentals in my stays in Kauai in addition to staying at my girlfriends house in Kilauea. The hotels are ok.But you feel more like a tourist when you stay at one. After 40 years of travelling there, it is more like my home away from home here in Topanga Canyon. I do like it better over there than here as I am more spiritually connected to the island. Next month, my girlfriend actually rented a VRBO to stay in for 4 days for all of us. She has never stayed up there. Only living in Kilauea and hotel stays in Poipu. So I will let you know how that turns out. Then staying at the Westin Princeville for a week. We’ll let you know also how that goes. Staffing, service, attitude, and aloha spirit while we stay there. It will be our 4th time there. Have a great weekend and be safe out there. Mahalo for the updates. Keep em’ comin’. Aloha Debra
Beat of Hawaii says
Hi Debra.
Thanks for the feedback. Have a great time and please let us know how it goes.
Aloha.
Lee S says
We have a Hilton time share and haven’t stayed in any hotel except the Hale Koa for years. We always have breakfast in the condo, and often grill on the barbecue for dinner. We just find it more convenient, and much more affordable given the cost of restaurant meals in Hawaii. We do splurge for special dinners, but really love having the kitchen in the unit, especially since our kids usually travel with us. I am not surprised that vacation rentals and condos have taken off. Having a common area to spend time together is great, but sometimes it’s also great to be able to retreat to either a private lanai, or another room in the condo.
Thanks for the interesting update.
Beat of Hawaii says
Hi Lee.
Thanks for the input! Best regards.
Aloha.
Glen M says
The Hale Koa is fantastic! I stayed there once for my mother’s birthday and loved it. If there is any hotel in Waikiki who should be charging a resort fee, it is the Hale Koa. Why? Because with its large campus grounds and many activity venues, it feels like actual resort. These other hotels who have the nerve to charge a resort fee are merely hotels with a swimming pool.
Chris R says
I’m sticking with hotels. They tend to offer much more flexible and easy cancellation/change provisions. I have been able to find reasonable rates for my trips. I typically visit two times per year. I have looked at vacation rentals but they end up costing the same or more than the hotel option for me and my dates. The cleaning fees are usually the deal breaker. A micro and refrig is all I need.
BARBARA M says
Just so glad we bought our timeshares when we did! Even with the ever-increasing maintenance fees, we are still paying only $257/night for our one bedroom and $285 for our two bedroom!
Chris P. says
I love the idea of going from my car to my rental without any contact with anybody. Traveling is extremely hard to do because of COVID-19. I hope that one day I can go on vacation because I can stay safe with rentals.
Amy B. says
Mahalo for the uplifting article! I’m one of the 118 island residents on Maui that have obtained a legal short term rental permit out of the 229 permits on Maui. The 118 resident permit holders are small business owners sharing aloha to visitors by offering unique rental home options that are regulated, taxed, and adhere to strict rules. When choosing a “house” these are some of the best options, as you know they are legal, and can be verified by permit numbers, and also through the County of Maui website. Most of these rentals have websites and can be booked through owners directly instead of VRBO, although they can also be booked through VRBO, where all the reviews are present to read. I have refunded 100% of my guests during and will keep doing so until we get a handle on our reopening. Vacation rentals is the only way my family of 5 has traveled in the last 10 years. As an on owner-manager, I’ve come to see that many types of folks are enjoying these rentals for privacy, the peace and quiet, the and convenience of meals with out eating out every meal. I look forward o reopening and adjusting to the needs of my guests in the future, as my family and local economy depend on it.
Beat of Hawaii says
Hi Amy.
Thanks.
Aloha.
PAMM says
Mahalo Rob and Jeff. I’m so thankful for your hard work and incredibly helpful insights.
I’ve been keeping my thoughts to myself, a lot lately, and I just wanted to reach out to you and let you know how much you’re appreciated!
Aloha
Beat of Hawaii says
Hi Pam.
We miss hearing from you! And thanks for checking in. Best regards.
Aloha.
Gina A. says
Stay in a hotel
A real business.
Trained employees
And no problems with refunds.
Clients are still waiting for refunds on the VRBO bookings.
Terry L. says
Hotels are fine for short first timers and the 1%’ers. But their lobbyists have been waging and winning a war against us residents and homeowners using the county government as their enforcers. They spread half truths about the few undesirable operators and deny freedom to all individuals who should have the same rights as the resort corporations. This denies middle class working families the ability to visit and spend the bulk of tourism dollars here for our economy and job creation. But for now..the lack of traffic is nice.we are enjoying our old Hawaii.
jim b says
One point I believe you missed is that short-term condo rentals are typically less expensive than hotels. Our units in Maui are consistently 30-45% cheaper than Kaanapali hotels
Shiloh R says
Please, there are only 1715 permits for short term rentals in Oahu after governor Ige began to enforce penalties on the approximate 8,000 illegal operations for short term rentals in July of 2019. (Bill 89) There will be Few short term rentals to choose from. This article does not mention this at all.