Cost of A Hawaii Vacation | Part 2: Hawaii Hotels and Vacation Rentals Skyrocket

Cost of A Hawaii Vacation | Part 2: Hawaii Hotels and Vacation Rentals Skyrocket

When it comes to the cost of a Hawaii vacation, your comments are clear that it is going up, up, up to the point that it is becoming unaffordable for many.

Last week we covered the first part of the cost of a Hawaii vacation (you can still see that below) on restaurants. As we said then, we haven’t focused primarily on costs associated with either accommodations or restaurants. On the other hand, we do regularly provide a lot of coverage on Hawaii airfare from Hawaiian Airlines, Southwest Airlines and others, and Hawaii rental car costs including deals from Discount Hawaii Car Rental and others, and how to get discounts. Also, how to avoid parking fees in Waikiki.

Hawaii vacations aren’t far from anyone’s mind at the moment. That’s especially true as the latest variant of Covid makes its way through Europe, with cases up dramatically in the past couple of weeks. Let’s say that for multiple reasons, we’re both scratching Europe off our short-term travel lists. Then, too, do we even need to be reminded just how great it is to vacation exotically, yet domestically. In a word, Hawaii.

Travel costs are rising, that’s clear. Also, we just read that about 40% of Americans are planning to travel in just the next few weeks, which is way up from those who were traveling one year ago. Vacation rental company Vrbo said that demand for rentals is already up 50% compared with last year. And none of this comes as a surprise as we all dig out of the Covid doldrums.

Travel accommodation costs are up and it isn’t solely about Hawaii.

Travel site Hopper just reported that nationwide, airfares for spring are up 21% over the same period in 2021. They also said that hotels are up in price by on average 30%. Hopper said, however, that peak demand and short-in bookings might cost you even more. We’re not sure, however, if they are getting the cost of Hawaii accommodations quite right, since they said that for this spring, hotel costs in “Honolulu, Hawaii will be down 5% (from $202/night to $192/night).” That was compared with 2021.

With Hawaii hotels, the cost issues include these:

1. Supply and demand. The desire for wanderlust in Hawaii has never been greater, with travelers recovering from pent-up demand for exotic beach vacations. After being cooped up for two full years, who isn’t ready for a safe-feeling vacation. More demand, less supply, and higher prices go together. In Hawaii, and elsewhere.

2. Lack of staffing. Hotels in Hawaii haven’t been able to rehire staff they lost during Covid. And when they do, they are having to pay far more to fill positions. Before Covid, Hawaii hotels employed more than 44,300 workers. A very significant percentage of those jobs never resumed.

3. High prices are exacerbated by extremely high taxes, plus resort, and other fees. Last year, HB862 created additional taxes. As a result, Hawaii now has the highest combined accommodation tax in the US.

With Hawaii vacation rentals, these are the concerns:

Hawaii vacation rental demand is surging beyond anything we have seen before. Usually, Hawaii vacation rentals speak better to the value and function paradigms that are popular with travelers. Costs are more easily controlled in a vacation rental, too, with a kitchen and typically fewer ancillary expenses like resort fees.

Yet having said that, the cost of Hawaii vacation rentals is escalating more even than hotels at this time. With that said, you can still find gems, one example of which is Maui Kai on Kaanapali Beach, where oceanfront rooms start at $279 with a kitchen in April. And there are others deals for the saavy.

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. Visitors who try Hawaii vacation rentals, largely don’t return to hotels. According to a Goldman Sachs study, that indicated there was trouble already brewing for the hotel industry.

We have always enjoyed Hawaii vacation rentals, compared to Hawaii hotels, for any stay beyond Honolulu, or over a few nights. Based on the popularity and price of vacation rentals, many of you feel the same way. Even when costs are comparable to a hotel, Hawaii vacation rentals can reduce overall Hawaii vacation costs and provide convenience through both kitchen and laundry facilities. And that is even before enjoying your own space, in something that feels more like home.

Visitors should only stay in legal rentals offered in designated tourist areas within the state. 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 Hotels: these are the costs now.

It was eye-opening to see the state’s most recent Hawaii Tourism Authority (HTA) hotel report (January 2022). What we found was that average hotel rates were up dramatically compared with pre-Covid. You’ve already been saying that in many comments.

Using 2019 as the comparable year. 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 monthly survey of Hawaii hotels includes 85% of all properties, including full service, limited service, and condominium hotels. Hawaii vacation rentals and Hawaii timeshares are not part of that survey but you will see those separately below.

Across all categories, the average daily hotel rate in January sat at $357, up 41%.

Properties deemed luxury class averaged $832, up 35%. “Midscale and economy” properties had an average daily rate of $281, which was up 48% compared with 2019.

Maui again leads Hawaii hotel prices: up 39% compared with pre-Covid.

Maui hotels saw an average daily rate in January of $619. The South Maui Wailea resort area was the highest again, with an average daily rate of $904, an increase of 39% vs. 2019. The West Maui area, including Lahaina, Kaanapali, and Kapalua, had an average daily rate of $515, up 39%.

Big Island hotels.

Hotels on the Big Island reported an average daily rate of $394 in January, up 32% since 2019.

Kauai hotels.

Garden Island hotels had an average daily rate of $368 in January, up 15% vs. 2019.

Honolulu hotels.

Oahu hotels had both the lowest daily rate and the least increase since 2019. The average in January was $241, and that’s up just 1% vs. 2019.

Hawaii vacation rentals: these are the costs now.

Hawaii vacation rental report: Prices have climbed and are approaching hotel costs.

The latest vacation rental performance report is also available for January 2022. The average daily rate for vacation rental units statewide in January was $295, up 35% compared with 2019. That remains just slightly lower than the average daily rate of $357 for Hawaii hotels.

Maui vacation rentals.

The average daily rate was $363, up 27%, compared with 2019. That was still 41% less than Maui hotels’ average of $619.

Honolulu vacation rentals.

An average daily rate of $223, up 39% vs. 2019, but still was 14% less than hotels’ $259 average.

Big Island vacation rentals.

Hawaii island rentals had an average rate of $237, up 38% and was 37% less than hotels’ $375 rate.

Kauai vacation rentals.

Rentals on the Garden Island had the highest daily average at $382, up 36%, and now 4% higher than Kauai hotels’ rate of $369.

Please let us know your tips and tricks for Hawaii accommodations in the comments below.

Cost of A Hawaii Vacation. Part 1: Restaurants

Whether your destination dining appetite takes you to luxury, economy or anything in between, here’s what’s going on.

First, eating in Hawaii restaurants can be excellent, mundane, or anywhere in between.

There’s such a wide range of options. Of course, standards like tropical fruits and vegetables and island fresh fish are often featured, and you’ll find things that may still be unusual to you, including Hawaii’s Poke salads, plate lunches and loco moco.

Eating out in Hawaii can also be budget-breaking.

It’s good to wrap your head around prices and plan accordingly as you put your Hawaii vacation together. Whether you’re visiting Honolulu Oahu, Maui, Kona on The Big Island, or Kauai, going out to eat on a Hawaiian vacation is a lot of fun and a part of the experience. But it also adds significantly to your Hawaii trip cost.

One tip we have to control restaurant costs is staying at Hawaii vacation rentals or other accommodations with kitchens and visiting the grocery stores. Nothing beats eating great food sitting on your own ocean view lanai.  And while groceries are very costly in Hawaii, they don’t hold a candle to restaurants. Heck, you could even save enough money for surfing lessons, a Hawaii spa day, or one of the helicopter tours.

Another tip is to check the Hawaii restaurant website for any deals that could include discounts on early dining.

What’s going on with the cost of Hawaii restaurants.

As we’ve mentioned, restaurants in Hawaii have been struggling in many ways, and it directly impacts the visitor experience. Read below for more details.

Hawaii restaurant staffing shortages.

First, many restaurant employees never returned to work during Covid. As a result, owners have had to pay more, and even then, a lot of restaurants continue to operate with reduced hours due to limited staffing. Do check hours and reserve in advance.

Shipping problems also remain a big issue for restaurants.

Whether it comes to supplies or food products, it doesn’t take a scientist to figure that Hawaii is still having a problem keeping store shelves, and restaurant larders, filled. When that will improve is certainly not clear.

The cost of food in Hawaii is up, way up.

You’ve written about it in many comments, and believe us, we feel it when we go to the grocery store. So too do restaurants.

Cost of fuel hurting restaurants.

Gas here’s well over $5 a gallon here, usually, although we’re hopeful it could soon ease. Restaurants are major consumers of power, including electricity, natural/propane gas, and gasoline. It’s needed for lights, air conditioning, cooking, and baking. You can expect to see that passed on directly to consumers in the form of restaurant price increases.

Breakfast in Hawaii restaurants.

Everything from the mundane to Hawaii-centric foods like loco-moco, Spam, and Hawaii-flared versions of french toast. Breakfasts start at about $15 per person. Don’t be surprised, however, to pay from $25 to $50 for a hotel’s buffet breakfast, although sometimes it’s included in Hawaii vacation packages or with your room.

Lunch in Hawaii restaurants.

It starts with the Hawaiian plate lunch for a distinctly local favorite. Hawaii has seen an explosion of not-too-cheap food trucks, everywhere from Waikiki Beach to near the Hawaii Volcanoes National Park, all of which are frequently very busy at lunchtime. Depending on how creative you are, you may be able to find lunch fare starting at about $10, and the sky’s the limit from there. We’d say an average lunch cost is in the $20 to $25 range overall.

Dinner in Hawaii restaurants.

The widest range of options and prices are available for dinner fare in Hawaii. From down-market starting in the sub-$20 range to hundreds per person. Drinks will add substantially to the bill, of course.

Can you get a Hawaii restaurant reservation?

We’re still finding that restaurants which accept reservations are hard to impossible to get into. We frequently see people line up about 4:30 pm for those that take walk-ins for dinner. For the top-rated Hawaii restaurants, such as Maui’s Mama’s Fish House; it is worse. We tried again to get a reservation today, and we honestly couldn’t find one online at all. Then we tried calling but finally gave up.

It is our recommendation that you plan and book any important-to-you restaurants before your trip. Check websites, Open Table, or other apps to find out what’s available. Regarding luau’s, book those early, if it’s important on your list of things to do in Hawaii.

Reader’s Tip: Recently, commenter Patrick said that, “if you strike out at a restaurant you want to go to, call them and see if they have a waiting list and inform them of the days you would go. If they are sold out and your travel dates are well in advance, it might work out. Once you get there, you can always stop by and ask as they will see you are committed to trying or re-visiting their restaurant. If you are visiting from the mainland especially in the first few days, try making an early reservation since you will still be on Mainland time. Good luck.”

Finally, remember to book these five things in advance.

1. Hawaii airfare.

2. Hawaii hotel or vacation rental.

2. Hawaii car rental.

3. Hawaii restaurants.

4. Any important activities.

Please let us know your tips and tricks for Hawaii restaurants in the comments below.

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47 thoughts on “Cost of A Hawaii Vacation | Part 2: Hawaii Hotels and Vacation Rentals Skyrocket”

  1. Could you please tell me if there are any luaus in Kuuai in October. We are staying Princeville. Thanks so much.

    1. Hi Karen.

      There are a number of luau’s around the island. Suggest you try searching or use the Kauai Revealed guidebook for more information to help you decide. Others may recommend their favorites as well.

      Aloha.

  2. We visit Hawaii around 2x per year. A couple years ago, our mini van would typically cost $50/day plus taxes. The last 2 trips it ran $100/day plus taxes. I was searching for our upcoming 15 day trip and all my normal sites (costco, priceline, expedia etc) were all showing prices ranging from $2,900 ($156+tax/day) to $3,700. I started looking at small SUV pricing when the search took me to Kayak. I was able to book our minivan for ~$1900 thru Kayak via Hertz. $1000 saved. Thought I’ld share.

  3. We’ve vacationed in Hawaii 20+ times in the last 30 years, including the Big Island in 2021. We won’t be going to Hawaii in 2022 and won’t return until hotel/vacation rentals and rental cars drop from the ridiculously high rates. Don’t perpetuate the problem; refuse to travel to Hawaii until prices return to “normal” high Hawaii levels. Hawaii will still be there in the future. In the meantime, travel to cheaper places, maybe closer to home, and have fun doing it! Mahalo!

    5
  4. We are on Oahu now. All the added fees for hotels make them more expensive. Even my timeshare yearly fees have gone up$1000 since 2005. Gas is cheaper than in California. Beware of the little stores in the hotels as food is very expensive. ABC offers a lot. Restaurant food is expensive. $25 for a hamburger. It is not crowded this week. You can get dinner reservations at the last minute. A dinner out can be $50. I will still vacation here in paradise. I have been coming over the past 50 years.

    1
  5. We’re resort stay individuals if you check daily they’re deals to be had.

    I booked our up coming May trip to BI last November for a weeks stay at Fairmont Orchid with car for under 3k. To be fair our flights were booked with points.

    Im currently booked for our October trip to either Maui (GW) or BI (Hapuna Beach). Maui trip is pricier, but includes a lot of perks where BI package is 2k lower in price.

    We’ve not stayed at Hapuna Beach before we’ll check it out on our May trip.

    1
  6. It’s relatively easy to rent a timeshare – no need to buy and make a long term commitment. Generally these are more friendly sized than the large resorts. They will have pools, probably game rooms, etc but probably lower resort fees. Companies like Hawaii timeshare exchange, Trading Places, and Redweek all usually have a selection of rental units (studio, 1 + 2 bedroom). You usually get a full kitchen to cut down on costs. most have BBQ grills. $300 nt for 2 bedroom approx.

    2
  7. Each year we go to Maui, we pre-book the same spring break week for next year.
    I had to compare to our 2019 price because 2020/2021 were Covid cancellations but I was shocked at the price increase of ~30-35%!

    You can always find good flight deals to Hawaii, but everything else is insane.

    All that said, Hawaii has everything we want, so we’ll continue to pay… for now.

    1
  8. Aloha Rob and Jeff. Kitty K was talking about her timeshare. Maybe those who have them are/could rent the out to vacationers to Dave some money on lodging expenses. I’ve been looking at some deals on Hawaiian Airlines website and there are some that are affordable. Airfares, hotel and car between 1800.00 and 3500.00.

  9. As a local I want to say we are having the same issues as the tourists – tho somehow it feels worse since we live here and cant get into a restaurant, find a parking space at the beach, or a reasonable cost at a hotel for a stay-cation. Even with the Kamaaina rate we just paid close to $400 a night for a 5 night stay in Napili. Just try to go to Lanai!!! That is the Worst!! $2400 a night!! We used to go there for every holiday at under $200 a night. its a rich man’s world here now.

    4
  10. We are going to be staying at the Wyndham Bai Hai April 2 Thursday the 9th, could you please help me find good beaches for snorkeling near there and best place to park. You have been so helpful in planning our month long trip. Daughter now joining us and wants to snorkel. Thanks so much.

    1
    1. Hi Charlie.

      Our favorite up there is Tunnels beach. Parking is a challenge but you can walk back from Haena Beach Park. Others may suggest different snorkeling beaches. Also suggest you check the Kauai Revealed guidebook.

      Aloha.

      4
      1. But the best place to snorkel on Kauai, we believe, is the area immediately west of the Beach House on the south shore. Absolutely teeming with fish that will eat fish food out of your hand. Pick some up at Whalers in Poipu. But remember to wear water shoes. Lots of rocks and coral.

    2. Aloha, thanks for the interesting article. Not trying to advertise our condo by any means, but you can find some inexpensive direct ocean front condos in Maui, such as ours, for around $200 a night in Honokowai and Kahana. Most buildings were built in the 1970’s, most have been remodeled at least once. Anyway, just thought I’d spread the word. Some owners have caught on and raised rates substantially, others have not.

      I love your newsletters!

      Mahalo

      1
  11. We recently looked at prices at a large resort in Waikoloa for same time period as 2020 when we had to cancel. Same room went from $297 in 2020 to $603 now. Comments on hotel were short staffed, restaurants menus pared back and prices hefty even for HI, turning down guests at restaurants even when tables empty due worker shortage. Will have to rethink our plans. Of course pricing is up for lodging and meals here in CA also, but it was still a shock.

    6
  12. I know many people don’t care for Timeshares, it’s definitely “paying for your vacation in advance” but we bought into one in 1995 and have used it almost every year in Kauai and other places. Yes, there are maintenance fees, but the points required for a stay don’t go up. We have been very pleased with ours and have found it a good way to stay at a really nice place without high costs.

    9
  13. The inflation the US consumer is facing is worse than anything in our lifetime.
    If the government will not cut back on spending the value of the dollar will continue to plummet. Who will travel if food and housing consumes most of our income. We are in a fight for our very existence.

    6
  14. We are frequent visitors to Maui and have always stayed at the Fairmont Kea Lani in Wailea. We get one of the more expensive rooms that had ran about $1k per night. When we were booking for this year the same room was over $2k per night…way too rich for our blood so we pivoted to Kauai.

    We are fortunate enough to not have to worry about dining costs and compared to Maui the restaurants seemed much cheaper.

    At the end of the day paradise isn’t cheap!

    1
  15. Planned a big trip to Hawaii including NCL cruise for my 50th bday…that was almost three years ago! With the exorbitant prices of everything from airfare to beach wear it doesn’t look like we will be visiting any time soon, many others I’ve discussed this with are in agreement. Living in northeastern Canada with a weak dollar and vast distances in between means spending $50,000 on a family vacation!!! Who has that kind of money for a two week vacation? Hawaii is closed to Canadians😔

    6
  16. Just got back to the mainland after spending 70 days on Maui. Weather was absolutely perfect! Traffic usually a nightmare! Restaurants required reservations if you could get thru on the phone. We found the best thing to do was stop in person at your favorite restaurant and beg for a reservation. Grocery prices were high, and a lot of shelves were bare. Gas and rental vehicles were out of sight. Beaches and points of interest were very busy. Unless we hit the lottery, this is last trip.

    4
  17. Booked my car rental months ago and was surprised by how high it was. Checked back a month later and it had dropped by over $300. Checked back last week and it d dropped another 150 of both Maui and the Big Island. Just the way I plan and pay for trips and I’m sure that I’ll be checking back again.
    After over 30 years of travel to Hawaii there is nothing in your articles that has surprised me. If you stay in a hotel instead of a condo then your costs will be much higher.

    2
  18. Thank you for your continued up to date info! We love Hawaii and have been visiting the Big Island every year for about 15 years including the Covid years. The price for the condo we always stay in has been increased by $350 per night for Jan. 2023. That means for a 2 bed/2 ba.over $750 per night before taxes. We feel this is price gouging and we are not going to return until this all calms down. We will go to Baja or Costa Rica next Year and we will wait and see about 2024.

    5
  19. Sure glad I got to go when working for Island Holidays. At least the folks who are pushing for limited tourism will get their wish pretty soon.

    4
  20. As with most Hawaii businesses, our employees travel for work on other Islands. The accommodation taxes and rental vehicle taxes are unfair to local business

    4
  21. On Oahu we stayed on Wakiki beach and I would say main thing about eating out is to be flexible. Do you really want to wait 3 hours to eat at Marugame or be disappointed because you can’t go to a luau. We used open table and also kept our eyes open. Even though we wanted to go to Basalt for dinner- we had a great breakfast there. We ate twice at Seoul Korean House. We at Dukes two times-
    We had many great meals, many shaved ice-even had a shrimp lunch on our tour around the island.

    3
  22. I own an oceanfront condo in Poipu, and the best restaurant I know is my Lanai eating grilled fish and watching the sun set. Food from Costco and Big save.

    12
  23. Our last trip to Kauai we spent $1,000. at restaurants. It was a 2 week trip for 2 people. That’s less than $72.00 per day. At least 5 of those restaurants were fine expensive places like tidePools, beachhouse and others.. That does not include money spent at Costco and Safeway. Breakfast is always at our condo, Kuhio Shores, where we really like to have lunch at the BeachHouse… Next trip in May is for 3 weeks…

    3
  24. It is no wonder that fewer restaurants are taking reservations. Remember that reservations are for the benefit of the consumer, not the restaurant. If the restaurant has a choice between having a line of people out the door ready and willing to fill a seat immediately that is better for them than having to take a phone call and hold a table for a patron that may or may not show. So long as the restaurant is full to capacity they are not going to bend over backwards to take reservations.

    9
  25. Good information. When we were there in December we found that 3 weeks out we still couldn’t get the exact times we wanted for dinner. We stayed in a condo, so breakfast wasn’t a problem, and ate at small local places for lunch most of the time. Even at Roy’s on the Big Island they were short staffed, as were many of the places we visited for meals. So my recommendations are to reserve early, and be flexible with your desired times.

    4
  26. One way to save a little money is, to shop in the open air farmers markets, especially in Waimea town on the Big Island. The farmers market in Poipu Kauai is decent too. I know of a local fisherman who sells his fish. It helps to eat what the locals eat. You will need a kitchen and a BBQ.
    Aloha Guys

    6
    1. Hi Roy.

      Thanks. On the island of Kauai, we’d say the quintessential market is the Saturday location at Grove Farm in Puhi.

      Aloha.

      6
  27. Many restaurants have limited their reservations, because they are seeing high no-shows. Owners say, guests book several restaurants, then choose one, but don’t cancel the others. Please cancel reservations if you have decided not to go, as a courtesy to benefit all owners and all prospective clients. Thank you.

    39
    1. Been on the Big Island since February 1. Most, if not all, of the restaurants I’ve made reversations with took a credit card when I made the reservation. I assume they will charge a no show fee if I don’t show. We always show–we aren’t known for missing a meal! Also received email and text messages the day before to confirm or cancel the reservation. If I owned a restaurant, I would do all of the above to reduce the chance of no shows.

      4
    2. Maybe they should charge a “reservation booking fee” applied to your meal bill when you show up. If you don’t show where you have made other reservations and don’t cancel them within a certain reasonable limited time frame the fee goes through.

      2
    3. That is such a shame! To book busy restaurants, decide not to use your Rez, but not cancel it is downright rude, & vastly inconsiderate.

  28. Made the mistake last year of not having reservations, especially on Maui, so I made my restaurant reservations for our June trip back in January.

    3
  29. Made my dinner reservations already for my trip in May to Oahu on open table, daily

    breakfast buffet is included with my hotel, plate lunch and saimin for lunch, I’m covered, aloha

    4
    1. Aloha! If you don’t mind me asking,…where did you reserve? We are headed there in October and I want to be prepared!

  30. Very common here in Calif. to bring in a bottle of wine and pay a corkage fee. Is this allowed there?

    Keep up the good work, you guys are no ka oi! Mahalo

  31. We typically make restaurant reservations 30 days out for great food experiences and cook the rest of our meals in our condo after making a Costco or Sam’s run. Sam’s is great because we can order pick-up at the Pearl City location and then just swing by on our way to Ko Olina. Of course, we love stopping at Don Quijote as well for our Asian produce and seasonings. It’s like an Asian Walmart. We enjoy Foodland farms and Island Country Market but they do tend to empty the wallet quickly.

    3
  32. We went to KAUAI last August for 3 weeks and booked all the restaurants we wanted about 1 month in advance. We got all of them that we wanted. Since we have a timeshare, we eat out every other night. It worked fine.

    7
    1. Would love to know the restaurants you recommend on both the north shore and south. We have a week in Princeville as well as a second in Poipu.

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