The cost of a Hawaii vacation has gotten out of reach for more than mid-range U.S. visitors. We just learned what is also happening with some of Hawaii’s coveted international visitors too. For example, Hawaii tourists from Australia are feeling that same pinch.
We know that because Qantas announced it will need to up-guage to far more premium, a prior low-cost route, starting next May. This switch from its Jetstar (economy) to Qantas (full-service) brands on the route comes with a significant change in cost. As a side note, Hawaiian Airlines once flew this route as well. They started it a decade ago, cancelled it during Covid, and never reinstated it.
Hawaii now a more exclusive destination for international tourists too.
While Qantas staying on the route does at least represent that Hawaii still has strong international appeal, it clearly signals that the draw of Hawaii, whether domestic or international, is fast shifting to much more affluent rather than mid-range travelers.
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The decision to shift from budget to premium speaks to the changing demographic in global Hawaii travel amid economic challenges. For Australians, their issues include a soft Australian Dollar and rising cost-of-living pressures. Qantas realizes that when it comes to Hawaii, it must cater to a demographic willing and able to pay more.
Governor Green courts Japanese visitors again.
At the same time, Governor Green is in Japan this week, for a third business trip, to strengthen ties with Hawaiian’s most important source of international tourists. And that comes as Japanese tourism to Hawaii is starting to see a trickling recovery, that is hoped may return Japanese visitors to normal over the next two years.
This move underscores the growing challenge for all budget-conscious visitors to Hawaii.
The Hawaiian Islands, already seen as a premium domestic destination due to high accommodation and dining costs. This move just helps to further cement that perception with international visitors too.
As Hawaii continues to grapple with its positioning as a luxury destination, the implications of this shift extend beyond just airfare and accommodations. Visitors may need to reassess their budgets and plans to align with the new reality, potentially prioritizing fewer but more meaningful experiences and even less time in Hawaii. For Hawaii’s tourism-dependent economy, the challenge remains balancing attracting high-spending, “more desirable” visitors with maintaining accessibility for a diverse range of travelers. As this evolves, it remains to be seen how Hawaii will navigate these changes successfully.
For those still looking to enjoy the incredible natural beauty of the Hawaiian Islands without breaking the bank, staying flexible with your travel dates, exploring alternative lodging options, and looking for off-season deals, remain the key strategies.
Is there anything that Hawaii can do to bring back mid-range visitors both domestically and internationally?
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Have been to Hawaii dozens of times, but when all the anti-tourism hit the media before Covid (locals destroying rental cars) we pivoted and go to Mexico and South America now. It isn’t about the money. It is about an enjoyable time.
I want to travel to somewhere I feel welcomed. It costs a lot of money to travel. Sounds like everything is getting way to expensive there. I’m looking for places that welcomes tourists, and a bang for my buck.
We’ve been to Hawaii numerous times over the years. Usually staying in Ko-Olina near the golf course. Although it has been a bit expensive renting a condo for a couple of weeks every year it was a pleasant respite from the Seattle weather. But alas the constant price increases and the attitude towards tourists has kind of soured the experience for us and our friends. We now are extending our southern California time to make up for the annual Oahu stay. It’s sad that the local folks are so put off by visitors and the obvious greed of the hotel industry is sickening.
As a resident, I love our state, but I do not support the price gouging that has taken place since COVID. Hawaii and also Las Vegas need a wake-up call. The prices are absolutely outrageous.
I visited Hawaii 24 times over the years, the last time was literally a couple weeks before the Covid mess hit. Having visited all the islands extensively the last ten journeys were to Marriott Waikoloa on the Big Island, my favorite. But after Covid the world changed including the price of travel. In the end the early February trip just before Covid to Waikoloa was my last to Hawaii. I had reservations for later that spring but of course there was no travel allowed. Sadly, I am priced out. The costs skyrocketed and the trips to Hawaii are now just too expensive for me. I cant believe the cost increases but it is what it is. I am fortunate to have experienced the islands so many, many times and over so many years so it is sad not to return.
Too expensive, especially in Maui. I come every year to scatter flowers for my sister, in December, and now I have to search other Islands for best price. Not the best way for Maui to recover. Lowering prices would be better to entice people like myself to return to Maui.
My first trip to Hawaii was in 2002 and we have been there many times since but no more. Sadly, Aloha is dieing as the local community are forced to the mainland to be replaced by the rich. Homelessness is rampant and jobs for people are not a priority for the government. The billions of dollars that the fancy hotels and resorts take in don’t stay in Hawaii or benefit the people of the state. My family and I would stay in STR’s , shop local, seek out the local restaurants, food trucks and buy stuff that was actually made in Hawaii. But your government doesn’t want people like us. They want people who will stay in the resort and only venture out to the Gucci store. We love Hawaii but can’t justify the cost. There are other places to visit in this world too.
Aloha
💯. Same is happening to my island Puerto Rico. Sad. Culture dying being replaced by greed. Sad.
Compared to June 2019, the number of visitors to Kauai this June
declined 2.9 % while the $ spent went up 35.6 %..
This is exactly what so many citizens and our elected officials want: Fewer, richer tourists with more money to spend and few bodies on the beaches and cars on the roads.
As owners of a hotel-zoned oceanfront condo in North Kaanapali, we’ve seen a decline in bookings, although our ’25 high season is booked. Our strategy to fill open nights is to lower our rates, from $400/nt. to as low as $150. There’s deals to be had if you look. Full kitchen helps you save on eating out. Try the various happy hour deals at local restaurants. Picnic on the beach. Maui is as lovely as always, uncrowded, and it is a wonderful time to visit! The local economy needs tourists!
They never should have been 400 in the first place.
Well I live in Houston and I can fly for less then $100 round trip food and hotel price are kind similar too Hawaii hotels Hawaii hotels prices what’s killed Hawaiian tourists going back to Hawaii it’s the airlines ticket prices there are so high and locals not want Tourists, I had Book a flight to Hawaii but I cancelled I rather go to virgen Islands , really locals need to change there view or visitor
Is there anything that can be done to bring back mid-range visitors…
You’re kidding, right? You state the problem and the answer in your article. Drop the prices. Just drop the prices of food, car and hotel costs. Just returned from 18 days on Maui. Been there recently? Surcharges on almost all restaurant meals. 1 ½ to 3 percent added on to every meal. Then still the expectation of a tip. Over days, that adds up. Car rental prices. Still high after COVID. We have a time share but are still hit with about a $17 dollar a night room tax. And publications like yours echoing conversations at government level about additional taxes to create a balance between tourism and ecological restoration of the Islands natural resources. Finally, create a marketing campaign, for at least Maui, where folks here on the mainland come to understand that the terrible fire in Lahaina is Not an island wide tragedy. There is still plenty to do and see on Maui.
“And that comes as Japanese tourism to Hawaii is starting to see a trickling recovery, that is hoped may return Japanese visitors to normal over the next two years.”
Ummmmmm…..no.
If you go and look at the state arrival data from Japan it is sinking badly.
International arrivals overall are also headed down too…
“If you have to ask, you can’t afford it.” – JP Morgan. Perfectly applicable here. And there are Lots of people who plenty of money to “afford it.” Getting priced out happens to us all at one point or another. Maybe you go once a year instead of twice. Or maybe you have to save longer to make the trip. Look at the price of Disneyland. People complain, but they fill that place every day. Just saying.
I don’t see the big deal about In Hawaii, I am an Airbnb host and in the last six months hosts have been slashing prices on STR‘s, my home is a three bedroom two bath home with Oceanview for 199 a night. I guess if you wanna stay in a hotel for a minimum of $750 per nightand that’s a cheap hotel. Then Hawaii is left for the elite, but you can still have a great vacation with STR.
This increase in the price of ‘visiting’ the islands reminds me of certain events on the mainland. A problem that arises is when the price of visiting escalates to pretty much price-out the average visitor, and the visiting drops off, how do you get the prices back to ‘reality’? Hotels love having fewer visitors paying equivalent amounts for the same or less services as the hotels would have gotten when they were full and charging less. This allows them to cut back on overhead/staff and increase profits. And for hotels in particular, increasing profits from a cash-cow like HI is what it’s all about, isn’t it? It’s how billionaires are made and it makes stockholders happy too!
Well, well, rich visitors are obviously more important to Governor Green than people who have families in Hawaii (on all the islands). it is clear to me that Governor Green has multiple times, violated his Hippocratic oath as a physician to do no harm! He is harming all those have who have family in Hawaii but aren’t rich! And he is beholden to his rich donors. The quote refers to his last campaign!
“Josh Green Has An Early Money Lead In 2022 Hawaii Governor’s Race…Lt. Gov. Josh Green has a strong financial position heading into the race to be Hawaii’s next governor.
Green outraised his likely opponents in the last six months of 2021, bringing in more than $770,000 between June 1 and Dec. 31.” See civil beat February 2022.🤮🤬
Hawaii has gotten very arrogant, especially without any plan to feed itself after tourism. It appears the powers that be in Hawaii didn’t learn any lessons – at all, during the Covid shutdown. If I were the Governor, my last worry would be Japanese tourists (look at the yen..duh) and focus more on Hotel chains overcharging and figuring out alternative sources of revenue outside Tourism. The state is a business, after all…BUS101
Remember folks, it’s not Native Hawaiians who are behind all this, it is the politicians that are doing the dirty work. They, as a group, don’t really care about the predicament of the Native Hawaiian (housing, rent, cost of living, food), but they ‘talk’ a lot about it. As some have noted, they keep electing these self-serving politicians, with their back-door dealings and graft, and nothing changes. Maybe they could import some pols from Australia, could they be any worse?!
Amen, the promise of the Train from the west side to Hono Airport in ‘75, still a dream 49 years later!
Maybe Hawaii has already fulfilled its tourism obligation to the world and another chapter of less is more is evolving?
Hawaii will continue to prosper for destination weddings & the traffic will improve from less tourism.
3rd Trip in 2024 for Green to Japan, all on the Taxpayers back, I’m sure he’s living well, wonder how much he’s giving away. The Japanese bubble burst in Hawaii pre-Millennia, ‘96-‘97, a nice run from 1975, but nothing lasts forever! In ‘96 the JPY to $ was 13.76, today it’s gone from 130JPY to 160JPY in 2024! Yokohama Okadaya closed 12 stores in Hawaii alone in ‘96, the majority in Waikiki, DFS closed their doors in Waikiki, this should tell Green something.
Governor Green is in the pocket of the hotel owners, it’s obvious when he’s trying to get rid of local hosted short term vacation rentals all over the islands, the hotel owners, want it all and want to starve out the local hosted vacation rentals, they have 70% accommodation rate and they don’t want to raise it because they’ll have to hire more staff but they still want all the short-term vacation rentals gone. This will destroy the local economy of house cleaners Handyman yard people, etc. that rely on work at short term. Vacation rentals, I’m so disappointed in green 😡😡
The majority of the Hotels are owned by Japan, the names on the marquis are the custodial partners, so I’m sure Governor Green has directed where any favors should be deposited, this or an Empty Suitcase!
Marriott, Hilton, Hyatt, IHG, etc. are owned by Japanese corporations?
HHV aside, Japanese Companies own the ‘bricks and mortar’ of the Marriott, Sheraton, Westin, Princess Kaiulani, RH (all Kyo-ya owned), as well as Sheraton Kaanapali, Halekalani/Halepuna, Kaimana Beach, The Kahala, and the Hyatt’s, along with others in Waikiki. The Hotel Brands are simply the managing Partner, who staff and manage, but the ownership is Japanese.
Aloha. Everyone could chip in to move the Governor to Japan since he seems to like it so well. Then maybe a lot of things could go back to normal and the tourists might return.
I love this! All his programs now prevent me from visiting my grandchildren who live on Oahu!
Australian dollar was 33% less than USD when we were there earlier this year. They called it our “US Discount”. The other way around, it’s the “Aussie Premium”. Maybe if their currency gets back on par with the USD, you’ll get more tourists. No different than Japan. Green can take all the trips he wants (and he probably does), but he cannot control the Yen to USD exchange rate.
The more I read here about the rising costs of hotels and car rentals, the more I realize how fortunate I am that my brother-in-law lives in Kilauea, Kauai. A place to stay as well as an extra vehicle so no rental needed.
Thank you for all the interesting articles. I know this article was mostly regarding international travel, but I have to say I have seen the lowest airfare on Hawaiian from Seattle to Maui. $100.00 one way! Look at condos in West Maui, north of the fire zone, lowest in years. Normal condo rents of over $250 a night, can be had for about $100.
Please don’t scare more visitors away, they are needed!
“Lower Prices”…
Best Regards