Hawaii hotel prices are continuing to soar, so perhaps it’s not surprising that Waikiki’s latest addition takes budget travel in a new direction—straight into a sleeping pod or capsule. Forget the sprawling ocean-view suites or even an older modest hotel room. The latest options coming to Waikiki offer something different: minuscule sleep pods, hopefully for somewhat less than the price of a full resort stay. Here’s how that’s going to work.
As Hawaii’s accommodation costs continue to soar, visitors are left wondering: Is this the future of budget travel in Hawaii? And at this price, is it even a bargain?
The reality of basic economy lodging in Waikiki.
Capsule hotels are nothing new, but they’ve traditionally been found in high-density urban centers like Tokyo—not in iconic beach destinations like Waikiki. First Cabin International Hawaii is one of the companies bringing this micro-hotel concept to the islands, offering tiny stacked sleeping pods to more roomy capsules resembling first-class airline suites—if first-class meant no windows, private bathrooms, and very little space to move.
For travelers who spend all day at the beach and only need a place to sleep, as some of you have said is the case, the idea seems logical, right? But logic is one thing—value is another. While capsule hotels are often marketed as a low-cost alternative, early booking data suggests this one might spend nearly as much as a full-service Waikiki hotel.
One visitor summed it up: Hawaii’s pricing itself out. “I’m no longer dealing with ridiculous prices for hotels, planes, restaurants, and car rentals!”
Podtel also enters the picture.
Just as First Cabin International Hawaii opens its doors, another competitor, Podtel, is launching in Waikiki this May. Unlike First Cabin, which markets itself with an analogy to airline-style experiences, Podtel leans more into the simplicity of pod lodging.
Podtel’s website promotes affordability, but without transparent pricing yet, it’s hard to tell if it or First Cabin will genuinely be a budget-friendly option or just bring more high-priced alternatives in terms of value. If both properties price themselves at a premium despite their tiny accommodations, will they offer travelers the savings they expect?
How much is too much for a sleeping pod?
Booking sites have been inconsistent with pricing, showing nightly rates that fluctuate. Booking.com, for example, currently shows that First Cabin will be $280 per night, putting the cost dangerously close to what travelers could pay for a standard hotel room. It looks like that’s for their best capsule. Other listings and an interview with the property suggest lower rates that could start at much less, while the final pricing structure for both properties remains unclear.
If pods in Waikiki truly land in the $200-plus range, as currently indicated, it raises a question: at what point does a budget option stop being a budget option?
As one reader pointed out, “Hawaii is pricing itself out of an average person’s stay.” If these hotels continue to rise in price, tourists might rethink their trips entirely. With rising fees and taxes, will pod hotels be another solution—or simply another overpriced gimmick?
What do you actually get in “economy, premium, business, and first class?”
The setup at First Cabin is simple. Guests get a small, enclosed sleeping area with a bed, a TV, and access to shared restrooms. There’s no private bathroom, no ocean view, and no luggage space beyond what fits inside the pod. In theory, this setup should allow visitors to save money while staying in the heart of Waikiki. Shared laundry facilities, a community microwave, and a common living room/work area also exist.
However, unlike in Japan, where capsule hotels cost a fraction of traditional hotels, Hawaii’s version appears to charge higher prices for a fraction of the space of any hotel. “Prices are crazy,” one reader commented, noting how everything from Hawaii accommodations to souvenirs seems to be overpriced.
And then there’s the question of add-ons. First Cabin International Hawaii is taking inspiration from the airline world, where the accommodations come in economy, premium economy, business, and even first-class pods.
While details remain unclear, the hotel’s website hints at a structured experience where more expensive pods may come with slightly better amenities or positioning within the property. But is this an actual tiered experience, or just a way to upsell a glorified bunk bed?
The future of economy-class lodging in Hawaii.
If this experiment works, it could open the door to even more extreme budget accommodations in Waikiki and neighboring islands. Could we next see standby-style lodging, where guests wait for cancellations to secure a pod? A red-eye hotel model, where check-in only begins at 10 p.m.? Or even Uber-style surge pricing for showers?
The bigger question: is this the start of a larger shift in Hawaii’s lodging market? In an interview, First Cabin International Hawaii indicated they plan to expand to the other Hawaiian islands. If these micro-hotels succeed in Waikiki, similar options may appear on Maui, Kauai, or the Big Island.
But as one frustrated commenter said, “Hawaii just isn’t what it was 32 years ago when I started going there. Prices are insane.” Will the pod hotel be the last frontier of budget travel in Hawaii—or just another pricey mistake?
Would you book a pod instead of a traditional hotel? Or is this where Hawaii budget travel goes too far? Let us know in the comments.
Lead photo: Podtel.
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$280 for Capsule!? For $40-$50 I’d take it and consider it a bargain, but no way for that much you can get a hotel room for $130 in Waikiki if you aren’t picky.
IMO might have well just stated Pay for a plot sleep in a box. No thanks.
Oh, Heck, No.
There’s cheap in cost and there’s cheap in quality. Don’t confuse the two.
I lived in Japan and these pods (sometimes just drawers, even) are usually for businessmen who need a cheap (as in inexpensive, frugal, low-cost…) place for one night. Japan utilizes public baths so they are used to bathing in open shared areas. Business is often conducted in clubs or on the golf course so facilities are available there.
For north American travelers this is a ridiculous option unless you are travelling alone with only a backpack. That is not most of us. We have companions and families. It’s not like we are just out of high school or college and are travelling in Europe. Hawaii isn’t that big. (Where, again, cheap accommodations like hostels and camping are available.) Two people could pool their money and get much better accommodations for the same or less. Any fool can see that.
Alooooha Alice🙏🌴🌊🤙Oh Heck No me neither…You are so right in your comment👍👍😁 ..another issue could arise I suppose eh claustrophobia? I am as of last Feb 19 2024 MRI, tech would not slide me out when I pushed the button extremely high claustrophobia..had no clue , maybe it could set off an attack or seizure in a pod, or birth really lol who knows 🤷
Mahalo Alice 🌺🌊🌴🤗❤️
This must be a joke but it’s not April Fools Day! I don’t believe this would be anything that the normal person could use. I was hoping to return in 2025 but not like this. I’ll just have to keep saving for a real room.
Not sure if this is considered a low. Hawaii hasn’t yet rented bus stop benches or park benches for overnight stays yet. IMO this is basically two steps from paying for a jail cell. Homeless people in my state is given a pod to reside in so is Hawaii testing how desperate the visitors are in getting just a place to stay? I thought they want to reduce tourism. IMO my best guess is a reason to raise the price of any now a day hotel room and add privacy, non shared bathroom, living room, spacious, and secure sleeping environment as a room ammentity. IMO renting an RV would be a better option. Ya sure there isn’t any empty dog houses for rent in someones back yard as some future rental option? This is a real step in Hawaii’s message of tourist’s not wanted.
Going to Hawaii last of March first of April already booked my favorite hotel in Waikiki, there is no way I would ever book a micro pod to stay there ever!!! There are still value room rates for nice hotels with nice rooms if you shop around! But I had rather not go if I had to stay in a micro pod …stupid idea! Just go stay in a hostel instead
No. Fr..king. Way.
I will not be in a box now or when dead. And especially not for $280+.
Alooooha everyone🤙🌴🌊
sleeping births is all they are and never will be anything else but, ..a ridiculous idea but however bound to happen,..and not for me
Mahalo have a great day and weekend 💖🌴🌊🤙
Hawaii wants to become an elite only place with only wealthy tourists n the locals to become the slaves to the elite as maids and gardeners to the stars. Hawaii wants all poors to never come back.
This is ridiculous, greed is what is ruining aloha
Why would anyone stay in a pod when u can get a roomy air B&B for less? The governor is in the pocket of the hotel owners which has been obvious! Anything to stop affordable short term vacation rentals for families.For eg: I have a a 3 bro 2 bath vacation rental ocean view on the Kona side for 219.00 per night, to me that’s a no brainer🫤
Ah…. come on, it can’t be worse than an MRI procedure !
And, hopefully, they’ll adopt surge and/or dynamic pricing!
Maybe even offer a ‘hot bunk’ rate with no change of sheets !
This model seems more appropriate for an airport, but as long as
no one is forcing someone to stay there @ gunpoint, what’s the problem ?
Thanks for a good laugh in what has now become the moribund Hawaiian travel experience….
I would not book one of those units. I don’t want to share a bathroom or kitchen.
What would one do if there was someone who snored loudly or was passing gas all night long?
Disease would be another grave concern as well.
I am sure there are many equally nice places to vacation if that’s what it came down to.
Hawaii keeps shooting itself in the foot.
I am afraid they will never learn until they have ruined the tourists industry.
Sleeping Pod accommodations.
Subtitle: “Life on a submarine “!!!!
Or… You could just plan ahead, make res’ at the family run Breakers Hotel on Beachwalk and have yourself a very basic “Madmen” retro experience that’s a hidden gem in terms of affordability and that “going on vacation with the folks” vibe. There’s an excellent Japanese restaurant on premises as well. Wasabi’s – also a family run hidden gem. Make those res’ early. The place has a Very loyal clientele.
breakers-hawaii.com/rooms-rates/
Hope the link is okay BOH.
Best Regards
We went to Costa Rica twice last year. Enough said!!
I believe this is a good addition to Waikiki,and Hawaii
Demographics are different now, this will accommodate solo travelers ,no resort fee
Why bother going on vacation to sleep in a claustrophobic space? No thank you! A resort fee at least lets you use the pool , exercise room !
another money grabbing scheme. has Hawaii been greedy all these years? why do we need more and more people? I refuse to think that our tourist revenue is not making money with our current hotel accommodations. we have to keep Hawaii, Hawaii. this is not Japan. it is Hawaii. westernized people will not be comfortable in small spaces. Japan has these boxes for reason. they are physically small. please, again, this is Hawaii and we do not need these boxes for people to come here and enjoy Hawaii and it’s hawaiian culture and scenery. boxes for beds, Don Don donkey, what is happening?
-It is not only marketed to the Western traveler; there are other travelers to Hawaii that it will appeal to
The secret is Hawaii wants to stop being a tourist destination . They want to have the ultra rich buy it all up n employ the people of Hawaii as thier personal staff. Hawaii wants to kill tourism and become an elite private paradise u all will get the privliage of serving for ur whole lives unless u leave. That’s what Hawaii givernment wants.
This is the most unappealing and ridiculous thing I’ve ever heard of! Granted I’m now a “senior citizen” but I don’t think this would have appealed to me when I was in my twenties and more adventurous. Why would anyone pay $200+ per night for this “pod” when you can get a room in Honolulu/Waikiki for just over $100+ per night at a two star hotel. These aren’t the Halekulani or Kahala, but the Aqua Palms, Queen Kapiolani, Hawaiian Monarch, Holiday Inn Express and even the Courtyard Marriott are usually priced in the mid $150 range most nights during the year. You could pitch a tent and rent a space in the $50+ range at many of state’s RV/camping grounds. On the neighbor islands, places like the Kauai Inn, Maui Palms, Kona Islander and Uncle Billy’s are always economical for budget travel.
Aloha to all.
Green’s Nightmare, either, he’s trying to beg the Japanese to come and share something they’re familiar with, or as David S. Commented, the rebirth of Pullman Car Rail Travel, in any case, even if these inflated prices are towards the bottom of the spectrum, they will attract only the very same clientele says they do not want! One can see almost daily what happens with the likes of what Spirit Airlines attracts, this is going to increase crime, theft, personal safety. These are the guests who will be paying extra for Parks, Beaches, Dining, etc., I think not. One Party Rule in Hawaii is the cause of all of this bizarre behavior, I guess they figure you can shower in the Ocean, hopefully, nothing else! Is there even a Hawaiian Tourism Board anymore?
Yes, there is. It was almost eliminated last year, but as usual cronies stopped that. Currently, all this authority does is to keep cronies employed. Pretty much useless to tourism.
Nope. I find it hard to believe that this concept will draw the ultra rich “mindful” tourist that the governor says they want to attract. Good grief. Do they really expect people to pay upwards of $1000 for a plane ticket to sleep in that? It looks like the perfect way to spread all kinds of unwanted illnesses.
Aloha. We are witnessing the death of the Hawaiian vacation in plain sight. This coffin hotel concept is stillborn.
Hawaii is exhibiting end of the world inflation pricing. Furthermore, after 35 years of travel to Oahu, Maui, and Hawaii this year may be our last trip to HI. While we can afford to spend the $ on exorbitant greed that Hawaii has become, we can no longer justify it…. especially over the last 6 years. It is time reboot and travel to a different and better location. Sadly, Hawaii is no longer No Ka Oi.
We tried a box at LHR in 2009. Never again, for any price. One of the few times in my life where I suffered from claustrophobia. I think “few” would be numbered as 2. I wouldn’t rent one on a bet. And if my timeshare shifted to this model it would be truly ugly.
Will BOH try it out?? I will not…
No, at this point in my life, I would not stay in a pod hotel. This may have been a good option when I was younger, but even at those prices it would have been a stretch for me to afford it back then. I do prefer some quiet time throughout my visits & a little extra space in my hotel room can be enjoyable & to recharge for the next outing during my stay. The balcony or view is part of the Hawaii experience too, I would feel too confined in a pod & would associate that with a bad vacation that I wouldn’t want to repeat again.
It’s a dorm room, some people will be stoked to stay in a Waikiki dorm room! But will they spend money they’re saving elsewhere on the island once they’re here?
Budget travelers visit O’ahu (Waikiki) and are always complaining about resort fees, parking fees, all kinds of fees and Honolulu food prices. They will probably be happy to pay $100-$200 for a bed, tv, and clean bathroom especially by Japanese Standards (even if shared). People who want more will just have to pay more or pay where there’s fees.
People who travel in hostels in Europe and Australia or even on the continent are used to these minimalistic offerings–they’re more surprised when they visit Waikiki hostels and find that people are “living” there because of our affordable housing crisis.
If AirBnBs / Short-Term-Rentals were allowed on O’ahu, the offerings at these pod hotels are basically the same kinds of accommodations…
If the State would let Locals get back into the tourism game and offer STRs, there would be better value for visitors.
I would rather stay home then slipping in box.
Hawaii is complaining about over tourism but on the other hand they allow hotel expansions and those shoe boxes.
It’s all confusing.
There’s no way I wld sleep in one of those. I wld feel like I’m in a coffin. Hawaii will lose alot of vacationers with this idea. Me included.
how do you tell the difference between a Waikiki – beach camper, sleeping surfer, or homeless person? Everyone will pull up a stretch of sand…
pod pricing is unreal as is the add-on concept.
Ha! Looking at the photograph, this is like Pullman Sectional accomodations on U.S. railroads that went out in the 1950’s!
I could see pods possibly appealing to people younger and/or fit, or an overnight stay for curiosities sake. You’d have to be ok with a tiny sleeping space with your luggage beside you, people going in and out at all times of the day or night, and a communal restroom. Certainly not worth paying in the $200’s. Too much of the “ick ” factor for me.