Airing some Hawaii travel industry dirty laundry. How Greedflation is impacting your Hawaii vacation.
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112 thoughts on “Greedflation Smacks Hawaii Worst Among Destinations”
Airing some Hawaii travel industry dirty laundry. How Greedflation is impacting your Hawaii vacation.
Get Breaking Hawaii Travel News
As an Australian and former, regular traveller to Hawaii, along with family and friends, I have enjoyed wonderful holidays, across all the islands, over five decades. (Pearl Harbour was always a “must” for my father who served in WW2 alongside US soldiers.) Since the introduction of hotel “resort fees,” a vacation in Hawaii has become ludicrously expensive ….now considered “price-gouging.” So sadly, very likely, we have all done our last trips to Honolulu etc. I have many friends who previously, regularly chose to holiday in Hawaii and now refuse to, considering the “friendly spirit” of Hawaii, has been lost forever, devoured by greed and what appears as the desire to “rip off” tourists.
O
Thank you/Mahalo
There’s only one fix for this problem and we all know it.
Do tell, Roy.
My wife and I just visited Oahu for 3 days and Kauai for 7. One of the most beautiful, memorable trips and is the single most expensive vacation we’ve ever taken. We knew it was going to be and saved for it. We were practical in Kauai – out Condo unit had a Kitchen, we shopped at Safeway and Walmart in Lihue and Kapaa for essentials. We got fruits from locals at home driveways and roadside stands. Did quite well considering and still allowed ourselves to visit local Hawaiian restaurants and buy from local vendors. Unsure how you locals afford it. $8 loaves of bread, $7 bags of tortillas! Insane.
Locals told us the cost of homes has doubled in 4 years!! Regardless, we had an amazing time and hope we can afford return…
It is also worth mentioning that despite the idea that the “resorts” are benefiting, it’s not the entire “resort” – the employees there are likely doing much worse with visitor counts down as the average resort worker doesn’t benefit one cent from a $1,000 room rate and is instead collecting fewer tips, cleaning fewer rooms, serving fewer diners, etc etc. So again truly a case of the rich corporations getting richer and richer at the expense of everyone else. Definitely paradise…for the rich.
As someone who grew up with family on big island and has been visiting multiple times a year for over 40 years – it’s very sad.
Great article which crystallizes my wife and my thoughts in rising prices. We’ve been visitors to the islands (particularly Maui) for over 30 years. We have come to see past the tourism and soak in the Ohana. Last month we had what might have been our most enjoyable stay, again being part of local culture. We considered ourselves fortunate and thankful to be invited. But we both lamented how expensive everything had become. Greedflation is the perfect word. I suspect “demand destruction” is on the horizon. We will monitor closely — until then we are focusing on new and more affordable destinations.
My wife and I have gone to Hawaii every year, and sometimes twice a year for the past 12 years. Inflation is a reality, and I always expect prices to rise, but never have I seen prices rise as they have an away in the last 2 to 3 years. Condos that I used to rent for $375 a night are now $1000 a night. Please don’t try to tell me the cost of really tripled in three years. However, perhaps a Y is getting what they want. Do you have less tourists spending more money. And perhaps, as you put it, that is “the sweet spot “however, just remember, wealthier tourists, while they spend more money, tend to feel more entitled. So be prepared for a larger number of disrespecting tourists that you already have.
That’s what happens when Airbnbs and short term vacation rentals are basically made illegal and the few that are allowed to operate are heavily regulated. The hotel industry doesn’t have any competition to force them to lower prices. I’m sure the hotel industry donating to politicians had nothing to do with that (sarcasm)
I was born and raised in Hawaii, Oahu. All my Ohana is there. Moved to California 2000 and have been here ever since. When I first got here locals used to say “OMG, isn’t it so expensive to live in Hawaii?” At that time I found costs for food and housing very comparable. And my reply was “No. Actually it’s actually pretty much the same.” But now, I’m embarrassed, ashamed and hope no one will ask me that question again. Because I always stood up for my home state. I’m recently retired and my plan was to spend my remaining years back “home”, but I realize now I am already back home. Aloha Hawaii.
Been going to the Big Island for the last 12yrs. Everything seemed expensive before covid but at least the rental cars and condo prices were tolerable. After covid the rental car price increase made sense but unfortunately has never really gone back down and now has almost doubled from after covid price that is a huge challenge for anyone who visits the Big Island and actually experiences all parts of the island. Also the majority of the long stay condos have almost doubled so 4 an average Joe finding a condo below 200 is impossible. soon only the rich will visit,only the resorts get money and most of them never leave the resort to spend money in the small towns/restaurants across the island. So only the resorts get rich
Car rentals is a great example of Greedflation. There is No Chance that the the costs of the rental car companies has doubled since the end of the pandemic. So, why have their prices doubled? Same with the hotel/resort room prices. I find it hard to believe that their costs have increased so much that they have had to increase prices so much. I wonder how much if this is an attempt to make up for” the fact that profits were down so much during the pandemic. But, again, that’s just greed. In the end, just look at the profit increases for Hertz, and the resorts, and you can easily see what’s going on.
Before getting my car, I did a lot of walking or took the public bus. I also took Lyft which is still cheaper than renting a car.
That is exactly what the resorts are hooping for …local government already burdens any owner who would want to rent out their unit with heavy taxes, then locals complain about individual owners rather than resorts. Probably because their kids dip into their pools and some are employed by them.
So true! They will stay on their exclusive club type resort and freely spend. That wii leave the rest of Hawaii for the residents. Price greedflation will have this effect. Tourism, which was once valued will become a rich only tourist location and many residents will be left without jobs in the tourist industry they once depended on.
Aloha, As a business owner I am certain I can speak for most businesses, large and small. Workers are scarce as hens teeth, and those that do show up are doing less. Taxes, fuel, and food, and virtually everything else is getting more expensive. We pass on the higher cost of doing business and the anticipated inevitable increases down the road. The Jones act, union control of the state, a terrible, overly regulated business environment, rampant crime. All cost passed on to our customers. Talk to almost any business owner and you will find this to be the case. Margaret Thatcher famously said “the problem with socialism is you eventually run out of others peoples money”! Sadly, Hawaii will discover this to be true sooner than later!
Ko Olina Marina implemented this policy a few years ago. They effectively doubled their slip rates and half the tenants left. Didn’t seem to phase them. They lost no revenue and lowered the admin and maintenance costs by roughly half. Such a deal.
My family had been on Maui for five generations. Most have either passed away or moved away, including me. It breaks my heart. This greed appears to be felt by everyone yet still perpetrated by many. I can no longer afford to live in my home. Rich people rent it from me. The same jar of pickles that costs $1.99 at Grocery Outlet in California costs $7.99 at Pukalani Foodland.
These are the worst inflated costs I’ve ever seen flying back home and staying in a hotel on Oahu in the 40 years of now living on the mainland. It will most likely be the last time to afford to bring the whole ohana here. So sad to stay a malihini and not be a kama’aina again anytime soon.
If you own real estate in Maui that “rich people” rent from you, You Are Rich. I used to rent out my place because I couldn’t afford living there either, but I am living in my 1BR in Maui now. I don’t need much because I like to swim in the ocean (free), snorkel ($10 for a mask at Long’s or Amazon), don’t need heat or A/C and even saved up for an electric car that doesn’t cost me anything to charge (free at the beach and other places in Maui). Funny how people who spend $50K on an SUV that also cost about $50 each time they go to the gas station say that a Tesla is expensive (I bought mine last last year for $40K and now have 0 expense). Yes, food is expensive, but when I go out, it’s during Happy Hour or places that offer Kamaaina.
Just say “No”, Stay home.
Have fun the people of Hawaii.
You’re being played.
As I read this article on sky high prices for stays in Hawaii, I cannot help wondering if this is a way for the Islands to reduce the high numbers of folks visiting and overcrowding the areas where visitors do not respect the rules of the road or private property or sacred sites.
A friend of mind visited Maui last summer and the crowds at different areas were noisy and ruse, ie parents not present with over noisy and reckless young children at the condo swimming pool or groups of people going over keep out areas and the like.
Not sure how others feel about this view.
I greatly appreciate your articles its a very useful information for traveling to the Islands.
Thank you,
Catherine F
Hi Cathy.
Thank you!
Aloha.
Yes, the popularity of Hawai’i is also its curse. There are two distinct problems: disrespectful tourists and price-gouging.
Let’s remember one of the main points of the article: Marriott reported a 70% increase in profits. How do those big profits tame poorly-behaving tourists or deal with overcrowding? They don’t: those big increases are paid out in dividends to stockholders, as incentive compensation for executives, and toward investments in new, non-Hawai’i properties.
Every tourist-dependent business in Hawai’i pushes for more customers. I suggest raising prices helps multinational hospitality chains while downsizing capacity will control tourism. Fewer available attractions = fewer tourists.
Marriott has thousands of hotels and resorts, so their profit in Hawaii is minimal. Too bad they merged with the Westin & other resorts. Have not stayed at a Marriott since then.
If you think it’s expensive to visit, try living here. We’ve been hit hard by inflation. As you may know practically everything you consume here has been shipped 2500 miles from the mainland. I’m surprised Beat of Hawaii would choose to characterize businesses covering their higher expenses as greedy. Maybe greedy in the sense they’re struggling to stay profitable?
If theybhad good margins before covid but now have unprecedented profits that shows they are not only covering increased costs but increasing their margins. Capitalism yes but also opportunistic greed.
I’m heading to Maui with my family next week and if it’s up to me, this will be our last trip to Hawaii. We lived on Maui in the early 1990’s and while we do enjoy going back to see friends, hang out on the beach and go whale watching and snorkeling, prices have gotten absurdly high. The only reason we’re going is because I got an amazing deal at a vacation destination (time share) resort. We’ve traveled to Mexico many times over the years and every time we go to Hawaii or Mexico, I ask myself why we ever go to Hawaii. We can stay at a nice place, eat amazing food and do a lot of fun activities for a fraction of what we would pay in Hawaii. When profits go up while occupancy rates go down, that’s gouging.
I’m a frequent reader, but I only occasionally delurk. Could I gently point something out?
It’s interesting to consider the discussion of greedflation in light of some of the other content that we’ve seen here:
* “Hawaii Visitor $50 “Green” Fees: How, When, Where?”
* “Hawaii Vacation Rental Tax Total Of 33% Proposed ”
* “Bribes To Ensure Good Service: Hawaii Tipping Goes Insane”
* “Hawaii “Annual Passport” Visitor Fees Exposed”
* “Only visitors will be required to pay at South Maui’s Kamaole Beach Parks and Ulua Beach beginning early next year…”
* “Honolulu Latest to Hike New Accommodation Tax: Highest in US”
I could go on. I love y’all. I love the islands. But from where I sit, the private sector isn’t alone in jacking up prices.
I wonder if this model actually works better for the quality of life of people who actually live in Hawai’i? Reduced volume of visitors subsidized by state infrastructure. It’s easy to
see the hotel operators as villains, but without pricing in other negative impacts of “affordable” tourism it’s kind of hard to assess what a healthy level of tourism is.
It’s simple…the hotels are making up for the 3 years HI shut them down. To make them it to be the bad guys is really not fair. The HI state’s Covid policies were draconian, even by blue state standards. The state of HI created this beast but it will be the first in line to condemn the very best it created. This is the way governments always operate.
I think you nailed it “Greedflation”. We reside in Florida and had been considering a month long vacation in Hawaii until we saw the cost associated with it. Probably double or triple the cost of staying somewhere here on the coast of Florida. We were excited to try Hawaii but the prices put it out of reach and we are not poor. Maybe if we win the lottery.
St. Augustine seems nice. Idk how much New Smyrna Beach to the south has recovered from Ian in Sept. but that’s a great day trip(or more) from there. And def cheaper I’m thinking, last stayed in St. Augustine in June.
Sure, but it’s all flat …
I go back home every January. The price of the trip has gotten out of control. 350.00 per night isn’t bad but all the fees and taxes bumps it to close to 1,000 per night. Simply put my 15 k per year are going elsewhere. I’m from Hawaii living in Texas now. Gonna miss the folks and the food but to expensive now. Mahalo.
Sorry, but this is all based on the $6.6 trillion that the administration has dumped on our economy. You’re going to get greedflatiron as people have a lot of money to spend with price being no object. This causes inflation which creates higher interest rates. It’s simply economics 101. Sorry, but you got what you voted for.
My wife and I loved staying at the same hotel resort on Oahu for the past six years before Covid and we did all the things one does when in Oahu But doe to the high cost of flights and hotel rooms we are planning to stay home until the greed of high cost may come down , the company’s responsible for this problem should remember dont bit the the hand that feeds you . Please and Thank You. Jerry W.
Greedflation has been going on for years, but definitely has gained more traction. I’ve always said no one is worth the amount of money these executives receive. Most times, companies have record profits due to price increases on consumers then pass on the profits to execs via stock options, special benefits or raises. Should that executive run the company into the ground, they reward them with crazy “golden parachutes”. I honestly don’t know what the answer is, but you can’t just blame the president because it’s not inflation – it’s greedflation.
We were in Maui recently and when it came time to pay our bill at a restaurant I believe 25% was the minimum Tip %. But I was more shocked to see 30% and 35% as the other pre calculated options. The service was not great either…
Indeed…we just returned from our month on the Big Island. While our timeshare fee has gone up slightly (and does each year because of costs like electricity)the car rental has taken the biggest bite out of our budget. We manage to find airfare that has been pretty consistent in pricing over the past few visits…but overall, this last trip was almost $2,000 more than in the past. We now have a time in the summer, and have never been to the Big Island during that time, so we will do that in 2024. But we are looking at putting our units into a trading program and going elsewhere in the world where we will get more bang for our buck. And it’s sad and it hurts, as we love our time in Hawaii…
BOH, I think you might think about renaming your comments section as Beat On Hawaii. I’ve never read so many messages from angry, entitled people. Why are they even commenting if they so dislike everything about Hawaii? It boggles the imagination.
They’re commenting on the article, not on Hawaii. I doubt they’d be commenting at all if they “so dislike everything about Hawaii”. More of a deep sadness if anything….
Actually my comment was regarding the BOH comments section in general. No one is happy it seems, for a wide variety of reasons.
I used to live in Honolulu back in the 90s. My 25th anniversary is coming up next year and I really wanted to show my husband my old stomping grounds, but I’ll have to go elsewhere since Hawaii is not visitor friendly anymore. Mexico here we come.
That just proves that Hawaii is not for every one. The 1st time I visited Hawaii was in December of 1989 for a belated honeymoon and I fell in love (not with my now ex husband, but with Hawaii!). We arrived in Honolulu and also visited Kauai and Molokai and when it was time to leave, I was soo sad, but my (ex-)husband said we would come back. However, it took almost 7 years because he said it was too far (living in Washington, DC with relatives in Europe), so he “tried” to convince me that there are other places like Hawaii …we visited Florida, the Virgin Islands, Puerto Rico, Costa Ricca, Bermuda, Bahamas, Cancun and Acapulco and although I liked Costa Rica, it was not Hawaii! So, now I live and work in Maui and I am very happy!
I do not mind paying a fair price for accommodation etc. However, greedflation on top of all the other New charges Hawaii is implementing is the reason my family will not return to the islands. As others on here my family is now finding other wonderful places to vacation. Bonus has also been shorter flights! Where are you choosing to go instead of Hawaii?
I’ve traveled to Hawaii Multiple times a year for the past 20 years. I know the islands and have many friends there. I always try to travel with a light foot print. I also like to get out of town and spend my money in smaller family run places in other parts of the island. As this greed inflation causes prices on rooms to skyrocket the booming profits wont trickle down to the mom and pop places. The big hotels will skim more and more off the top leaving everyone else to fight for the crumbs. This is corporate greed, local government allows it and in some cases supports it and the family owned business will be impacted the most.
Seems the Hotels are not the only ones practicing greedflation, I was shocked at the famers market this spring over last spring High Priced Papaya’s specifically. While I generally choose to support local economy I opted for Safeway and Wal Mart papayas, taste as good for much less I also opted for several other items at Costco over farmers market just because of the overpricing on the papayas. I did not appreciate the attempted gouging. Ethically speaking regardless of how much someone is willing to pay it doesn’t mean you should charge it- where’s the Moral Compass. No hotel on this plant worth a $1000 a night let alone $300 a night. Plenty of amazing places to see at reasonable rates, like Spain & it’s amazing beaches.