Airing some Hawaii travel industry dirty laundry. How Greedflation is impacting your Hawaii vacation.
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Airing some Hawaii travel industry dirty laundry. How Greedflation is impacting your Hawaii vacation.
Get Breaking Hawaii Travel News
Wow, what a great article! But..
But not a single note in the article or in Any of the comments that talk about the collusion of state officials (talking about you, City Council of Honolulu) with the hotel/hospitality folks to intentionally push for “higher value visitors”, by amping up the fury of locals to eliminate “alternate tourist accommodations” (read STRs).
How weird is that?
Well..now the chickens are coming home to roost. Is it so hard to understand that we don’t have any other source of income here in Hawaii and that the health of our beautiful paradise depends on “reasonably managed tourism”?
I live here, and I see the poor roads, and the struggling local folks, trying to make a living, but I’ve run out of sympathy.
100% in agreement, Ben. County and State legislators and regulators in collusion with the mega-corporations (none of which are locally owned and operated) is the simplest explanation for the rampant overdevelopment that ignores sustainability and common sense and only serves the needs (or wants) of the high income transients (aka wealthy tourists) rather than the local population. Follow The Money.
Like I’ve said on other posts in the past. Big Tourism pretty much owns the politicians in Hawaii. As you said, follow the money. It goes from the tourists to Big Tourism, then out of the state except for the money they use to pay the lobbyists and donate to political campaigns to ensure that the politicians are looking out for Their best interests, not the ordinary people of Hawaii’s.
Aloha! So if this “Greedflation” continues going the direction the State of Hawai’i, or it’s Travel bureau, with will they tear down the hotels in Waikiki to suit the demand figures becauseof the lack of visitors? Just wondering. Would make more room for parks. Aloha!
No one if “forcing” people to pay the high prices. It’s like art. It’s worth whatever someone is willing to pay for it.
Option 2- Travel somewhere else where the dollar is 2-1
Asia, Fiji,Mexico etc.
Only one problem with your theory. Only the very very rich will be the only ones to visit and buy vacation homes. Which drives up property taxes and goods and services that locals will have to pay. Soon there will be no locals or they will just be homeless. Who ever is reading my comment and rolling their eyes ……. I’ll just sit back ( from the mainland and watch this happen) from afar …..
My best friend and I plan a trip to Maui every 5 years when we have birthdays ending in 0 or 5. We’ve been doing this for the past 20 years so this will be our 5th trip. We’ve always stayed at the same resort in Kaanapali which is normally around $300/night. I almost fell out of my chair when I priced the resort this year as it is now $900/night. So we will not be going to Maui this year but instead visiting the Big Island where we found a beautiful resort for $300/night. I’ve stayed at said resort before and I love it and I know she will love it too. She has never been to the Big Island so it will be fun for us to celebrate our 60th birthdays on a different island this year. Bye bye Maui!
i rent via a large local Hawaii real estate company that reps individual condos owners, for the past five years they have found me great places to stay, with what i think are reasonable prices, $175-250 a night depending on the time of the year mostly. i book directly through them, not vrbo or the like. but i suppose that is just my family, the hotel thing just ain’t us.
🥳 Happy 60th birthdays to you and your friend! What a great and memorable way to celebrate your special day! 🍹🍹 Have fun!! 🎉
Last fall I booked a hotel room on oahu for a vacation in April which I could cancel up to 21 days before arrival date. I’ve made a point of checking the hotel rate frequently and each time the price went down, I updated to the lower price. Now I have a price comperable to the price I’ve paid previously for this room. It has been a real pain to do, but now the trip is affordable. Also Delta has canceled all but 2 flights a day from our closest small town airport and we’d be stuck with a 5 hour wait to connect to our flight to oahu. Found out that it is cheaper to book a limo then fly to the large airport where we get the flight to oahu.
Thank you the information on Greedflation. I was hoping to travel to Oahu and Hilo for my reunion and to visit family in June. Decided to cancel the trip yesterday and I’m pretty heartbroken. Hotels weren’t the reason as I would be staying with family. It was high airfares and ridiculously high cost of car rentals.
Oh well, maybe in another five years?
We’ve been visiting your beautiful islands for over 20+ years with the exception of Covid years . Last year we visited both Oahu & Kauai and felt the huge increase of hotel rates, fees, rental car, etc so this year we went on a Caribbean cruise to 7 different islands plus an extra 2nights in Puerto Rico and it was half of last year’s trip to HI. The Caribbean island locals were thrilled to have us and more than appreciated our visit. Coming to your beautiful state is a very long trip from us from the South but when we considered the time and cost we chose to spend our dollars somewhere else this year and felt welcomed for coming.
I think it’s time to call it for what it really is, plain, old-fashioned, 19th century, capitalist gouging. Last year when we were finally able to go to Maui after Covid, there were steep price increases almost triple what i had paid at the same place the year before COVID – I rationalized this as making up for lost time with what had been lost during Covid. About mid-vacation, when I Had to pay to park the car at beaches I had never done so before, that’s when i realized this Covid rationale was just a cover story for plain old fashioned out-of-control gouging. Soon the Hawaii Tourist Industry is going to price themselves out of the vacation market.
There is a sizeable percentage of the local population that would very much like that to happen. There is also a much larger group of working class people who need those tourist jobs. If the industry collapses a large number of people living near the poverty line will be forced to leave their home for the mainland. Again something a sizable percentage of the population would like to see. Truly sad
I am not sure what you are talking about. I stayed at the Outrigger Beach Hotel in Waikiki for less than $250/night with my boy-friend (Kamaaina rate) mid February, so if anyone pays $1K/night, they haven’t checked around for deals. Prior years, we stayed at another Outrigger Hotel, Ala Moana Hotel and Sheraton Princess Kaluani for similar rates. In addition, we had brunch right at the beach (they call it breakfast buffet) for about $25pp, then relaxed at the pool and swam in the ocean right in front of us. February is supposed to be “high season” which would be comparable to summers on the East Coast where you would probably pay more than that!
In San Diego we most definitely get local’s rates. Perhaps you should check out your home town.
It’s out of control. Between the hotels and government, people are going to choose to go elsewhere.
So then everyone will be crying and government will raise taxes for everyone.
I’m in Kauai now; am 90% sure we won’t be returning. My first trip was 48yrs ago-I was 18,on my own dime; fell in love with HI. I have traveled back to HI once a year, many years 3-4 times. March 2020 COVID, I did my best to stay here during the pandemic, but alas, the airlines said no more flights and resorts closed so my husband and I ended up being the only 2 passengers on the last 737 leaving Kona in April 2020. What is so very disappointing this year in Kauai Princeville is the ridiculous so called resort fee – we’re at an OLD but lovely timeshare resort we traded into and paid $ to trade. Tiny pool, no services, no even midweek cleaning and yet we are Forced to pay $26/night resort fee (WT@$!) plus HI taxes of $16/nt. Greed!!!!!!!
Why are Kamaaina rates allowed. Discrimination. After all, their travel costs are much cheaper than mainland visitors. Should they not pay their share. I bet they would complain if they paid more for mainland hotels.
Sorry, if your state doesn’t take care of you. When considering high prices inflated by tourists in Hawaii (after all, most only stay a week, so they don’t care how much they pay), I am glad that Kamaaina rates exist. Dont’ worry, they are probably not coming to your state. They can’t afford it. And what does that have to do with discrimination? Hope you live somewhere with a “diverse” population that is accepted by all. My 1st visit to Hawaii was in 1989 and there was a welcoming Aloha atmosphere all around. May be they were too friendly and accepting for too many years…tell me where people are friendlier to visitors who ruin their home state.
You do know that Vegas has local rates too, right?
Aloha. Does Las Vegas have local rates? I’ve lived in Vegas for 37 years. Don’t know of any hotel that gives locals a discount.
I’ve been coming to Maui and Oahu for 40 years every 2 years. I just came back from 3 weeks on Maui a couple of weeks ago. One disappointment after another..the services at my timeshare gone where I was expected to do all my own cleaning, terrible car to rent at triple the prices I paid last time in 2019, nothing new or improved for exhorbitant prices everywhere and lack of Hawaiian hospitality. I don’t plan on returning..how very sad.
One might try a timeshare rental. Ususally in a unit of a week, but at $3-4000, it might be the more affordable way to go.
I saw a 2 bdr at Waikoloa on TUG for $2000. There are other rental sites, as well.
The sad Reality is most Hawai’i Politicians (County council up to State Senators) already receive large support/donations from the Hospitality industry (unions, resorts and of course large corporations) so don’t look for common sense changes to ease residents & tourism costs. When Hawai’i government already believe they have the right to tell homeowners whether they can rent to tourists or restrict STVR’s so they can funnel all tourists into Expensive Hotels/Resorts.
Sad Reality in Paradise!
We had free first class tickets on Hawaiian for 8 days. We usually stay at the kahala where the rates drop end of April. But not this year. For 8 days with car would have been around 1k a day.
Instead we are heading to Hilton head island where I rented a vacation home furnished for 6 months 16k to total. I’ll drive from AZ and stay near friends and relatives. I’ll fly back every now and then on my free southwest flights 25k round trip. I have my cats with me use my car no need to board @50 day airport park $40 a day at the airport.
Hawaii wants big spenders. They aren’t stupid is why they have money. I don’t mind paying up but the value is no longer there. Hike fees park fees governor fees never ends
Never been a “value” place to visit. However, you are comparing apples to oranges. Been to Hilton Head and Arizona 😉
True, its comparing apples to oranges: Hiltn Head= great foods, friendly people, and, most of all- class!
We were cheated into losing use of our Kauai Marriott condo for last two years, turned off by greedy fees, exorbitant cR rentals, restrictions are excessive. We sold our condo timeshare of last 27 yearz- for nothing! From now on, more cruises, travel to French ( the real) Polynesia, nice jaunts up to classy Hilton
head, other Florida beautiful beaches,etc. No more wasted on ungrateful Hawaii.
Well, we all know that timeshares are a terrible investment.
Yeesh! I sense a disturbance in the force.🙄
Maybe old Hawaii not the new version been going down hill for last decade I lived on Maui for a decade and Oahu for 12 years. Lahaina is a shell of itself. Character charm and people all gone that made Lahaina what it was. Waikiki has turned into a sespool. Character and charm are gone. Can’t and won’t get it back. Hawaii has made its decision and that’s fine. I think long run they’ll regret it. Feel bad for the people there getting pushed out due to air bnb etc . The people made Hawaii now many have gone or are angry. No aloha it’s da kine.
It’s actually pretty simple. More profit from less customers means less staff / benefits / housing / etc.
It’s the perfect solution for the owner class. The losers in this transaction? Small businesses that service visitors. I’m quite sure those corporations don’t care about that.
Sorry to hear about Lahaina. Lived a couple years, left in ’18.
Dear Rob and Jeff,
Once again, you are laser focused on the challenges that face the middle class in the pursuit of leisure travel. I find that ,with the exception of domestic air travel , it is increasingly difficult to find value in leisure or business travel. I have four “must attend” trade shows per year. This year, I will be attending only two. I will have a robust budget for leisure travel but will not be traveling to Hawaii until I can afford our own separate dwelling and at least a month’s stay.
Your state is one of the best places on earth! Thanks for all your research. You are the “beat of Hawaii”!
Hi Hugh.
Thanks for your many comments and nice words. We appreciate it!
Aloha.
Aloha, I for one won’t be going back after going for 40 years. The cost is prohibited on our budget. Last year was very different from previous years. We can go to other countries and spend less and enjoy our time away. We will miss Hawaii but not the hassle and exorbitant costs.
Mahalo
I can’t believe Hawaii is doing this. They raise hotel prices, start charging to park in certain areas, and heaven knows what else. It might backfire and I hope it does. What if people boycott and decide that they won’t, or can’t afford the inflated prices. Where will you get your money then? How long can you live without visitors? I wanted to come back to the islands, but now I won’t be able to afford to visit. Hope Hawaii servives this rediculous idea!!! Thank you for allowing me to share my two cents.
It’s not a zero sum game. They are trying to turn Hawaii into a luxury destination so they can get the same money form fewer tourists.
Absolutely. Lower congestion and maintain income. Lower conflicts with residents.
We have watched prices continue to rise for the past few years. From what we paid 4 years ago to our last trip more than doubled. To adjust we cut back on extras, food and didn’t stay as long. Not the best option due to the travel time. It makes me sad to think that I may not be able to visit again due to costs.
We live on the big island and have seen prices really climb at restaurants and the customer service is pretty much non existent. When we traveled to Oahu in December, the hotel prices had really jumped up since our previous visit in June of the same year. We saved money by not renting a car and used Uber instead. We eliminated the airport fees and taxes and having to put gas in the rental. We didn’t have to pay for parking either. We called the hotels directly to get the best rates and were more conscience about where we ate and our tipping.
Bracing myself for all the comments here that will be blaming the general Hawaiian population for this. As if we sit on the boards of Marriott, Hilton, Sheraton, Air B&B, Hertz, Avis, United, Delta, Southwest, aEnd all of the other trans national corporations that run the vacation industry in this state.
Everything in Hawai’i is high and I am unsure of how businesses will be able to continue to operate into the future. Without visitors, there will be no income. Or, only the very rich will be able to afford to travel here as is the case with homeownership. Only the very rich are able to buy here.
SO many have been priced out of paradise and so many more will follow.
there are affordable homes here. You need someone that knows where to look. Potential home buyers should consider other islands beside Maui. These big corporations are making things here unaffordable and they use the pandemic as a scapegoat to raise prices.
Supply and Demand. If the price gets too high, the demand drops. But by reducing alternatives such as vacation rentals, the supply drops. Sound like a good time to be in the hotel business.
By the way, we are leaving next week for a 4 week trip to Portugal (including Azores). Hotel prices are way cheaper than Hawaii (I am averaging $220 USD a night including taxes and breakfast for 3-4 star hotels), and way less if you stay at a 2 star. They have plenty nice beaches; train and metro transit systems to the point where we will only be renting a car for a few days in the north and out on the islands.
IMO it’s quite simple supply and demand. The demand has not waned off enough to force these corporations to adjust pricing. My advice, travel to any number of different tropical locations that are willing to keep pricing lower. Mexico, almost anywhere in the Caribbean, the south of Florida, Tahiti and Fiji are just some examples where you typically get more “bang for your buck” compared to Hawaii. Wife and I are planning a Tahiti trip for this winter because it is a fraction of the cost compared to Hawaii for the same dates. Even airfare is virtually identical between those two destinations and Tahiti is 1,000 miles further away!
the big difference is that you don’t need a passport to travel to Hawaii so people don’t have to plan as much or have the expense of getting a passport
Lots of Americans are afraid of traveling to foreign countries. Perhaps now they can experience the delights foreign countries can offer.
If you’re traveling to any of these destinations the cost of a passport isn’t going to deter you, they’re valid for 10 years and it’s under $100.
Hawaii relies tremendously on tourist coming to enjoy the paradise provided by the beauty and weather of the islands. The people who live there depend on the tourism. They provide the employees of the various corporations that own the hotels, restaurants, airlines, grocery stores, convenient stores, and service/gas stations. These corporations have used the pandemic, inflation, and economy as excuses. The corporations are taking advantage of the economic conditions making huge profits. Hawaii is becoming unaffordable and it will hurt the people who live there not the corporations.
How is Molokai doing? I have a relative that may be traveling there soon for a wedding (not his).
We want to visit but with hotel and car rates up over 40% from our last visit pre-Covid we have been to Tahiti twice where it is less to stay and you don’t need a car rental. We have free airfare to Hawaii but will wait until prices come down.
Blame everything on Covid (handy) – lack of inventory (intentional?) – lack of personnel? Supply chain issues – ba humbug! Maybe. Greed has always driven men to do harm to others. Covid was just an excuse to rape everyone for everything we need or want. So, except for those who have stock in those greedy corporations – we all get to tighten our belts and do without. We find alternatives. Other places to go – OR – stay home and enjoy our backyard.
We have to laugh at the ‘inflation’ numbers. They are not the numbers we experience when shopping for our necessities – fuel and food. Neither does anyone else. Only those who ride in limo’s and have others do their shopping never feel the pinch of inflation … aka Greedflation. :0(
Aloha Beat of Hawaii.
It’s affecting my ohana and therefore myself, because no one can afford to buy airline tickets or housing. I have a 2bd 1 bath and there’s hardly any room for myself, let alone guests.
I hurts my heart that this greed based society of ours is getting worse. I thought that people would appreciate others, more after Covid, but it’s not happening.
We’re all suffering in one way or another.
Please stop this insanity and let’s all find our Aloha!!!!
Mahalo Nui Loa.
Stay safe and blessed guys.
We are not timeshare people, but bought a resale timeshare at Westin Kaanapali villas because it will pay for itself in just a few years and we have it ongoing. It is one of our fav snorkel spots and we will never tire of the water and beach there. 🙂 We bought every other year so we have options.
It’s even affecting timeshare owners. Our weekly maintenance fee went up over 30% this year. I believe these prices will result in many owners just dumping their weeks by stopping payment of the fees. This in turn will drive fees even higher as less and less owners are sharing the costs. This is not good for anyone and really can’t continue.
Yup, and here’s the rub, you can’t fix Greedflation by increasing interest rates which is the only tool that the Fed has to fight inflation. Worse yet, it hurts the people who are being hurt by inflation the most. It’s also contributing to income inequality in the US. Price controls (and yes you could put them into services such as hotel rates) are one solution for this. We actually did some of that back in the day. But there are down sides to price controls such as the fact that they are a temporary fix. The other options would be “windfall profits taxes”. Those would go after Greedflation directly, but also have some downsides. In other case, as the article suggests, something has to be done, or the social unrest could get really bad.
Sadly, my response to the situation is to avoid Hawaii. While my husband and I have made multiple trips there (and are particularly fond of Kauai), we will stay away until the prices “normalize”. We love Hawaii, but there are many beautiful places on this planet. In fact, we just spent a month in New Zealand and I’m afraid that it may have displaced Hawaii as a favorite place. Prices are very reasonable there. Unfortunately, corporate greed will hurt residents of Hawaii. No one likes government control, but when the corporations have run amuck….
I notice this on our recent trips to Oahu to see our grand kids. Hotel and Resorts are over priced and they nickle and dime you death with all the extra fees from parking, amenity fees, activities, rentals and prices for the restaurants in the area are too much.
Seems like greedflation fever has affected both state and Maui government fees for tourists as well. Higher fees for less access for visitors, with the hotels increasing their prices but at least not lessening their product.
The “Greed” always creates the “Need”!
If the prices in Hawaii are getting to the $1000.00 per night range for the average visitor, it becomes worthwhile to look at other destinations and maybe pay 30% to 40% less per room (times 7 to 10 days)and convert the savings to an airline ticket to somewhere else.
We’ve gone to Papeete, Moorea, and Bora Bora many times over the years and they are truly spectacular. The airfare can seem steep, but take the Hawaii airfare you were going to spend anyway, add in the savings on your rooms, and suddenly Tahiti becomes more affordable.
Air Tahiti Nui (nope, I don’t work for them) has been our airline of choice for probably 10 trips and they do not disappoint. A fleet of 787’s replacing the A340’s make it all the more exceptional.
Just looking at what I read here plus see on the Big Island I think that Hawaii is moving towards being a “luxury” destination. Accommodations outside of Honolulu will move towards all-inclusive resorts. Everything you need in one place. This will, I believe, satisfy the Hawaii for Hawaiians by carving out a few places for visitors and leaving the rest to locals. The airlines can fill their planes with luxury traveller. Instead of planes with lots of “cattle car” seats they can have fewer and charge more. Might hurt the rental car industry as h=folks will just bet bussed to resorts.
car rental rates are nasty
I visited Maui in February this year. If my niece did not live on Maui, whom I consider a daughter, I would not return due to the out of control high costs.