The Hawaii travel market has clearly split into two sides this fall. The high end keeps climbing, while the mid-range is softening in both occupancy and price, enough to start creating real value. Travelers who understand that divide can either save money or finally book the splurge island stay they’ve been eyeing. It’s a shift worth watching if you’re planning a 2026 Hawaii trip.
Here’s what the hotel numbers actually show.
Hawaii’s September hotel report looked calm at first, but the details tell a different story. Statewide, the average nightly rate held at $315, almost unchanged from last year, while occupancy edged up slightly to 69.7%. That small move hides a widening divide between high-end resorts that keep rising and the middle of the market, where 2026 value is beginning to show.
Luxury hotels continue to power ahead. Nightly prices increased by about 3%, and occupancy rose by more than 3 points, indicating that high-end travelers are still booking and paying premium rates for the right properties. The middle of the market, meaning Hawaii’s standard hotels and condos, barely moved. Rates there slipped a bit even as rooms filled slightly faster, signaling the first real softening we have seen in some time. For travelers, that may finally mean more options and better value.
The island picture is mixed. Kauai stood out again, with average nightly rates of nearly $384 and an occupancy rate of 74.7%, both up from last year. Oahu cooled a little, holding steady around $259 per night but with slightly fewer rooms filled. Maui County’s recovery remains uneven, with prices easing a touch even as occupancy holds, while Hawaii Island mainly stayed flat.
Those patterns matter for visitors planning 2026 trips. Kauai’s strength shows continued demand at the top end, while Oahu’s lighter demand may bring the best availability and pricing opportunities next year.
Looking at the year so far, the statewide average nightly rate is $364, about the same as last year, with occupancy steady at about 74%. Hawaii remains among the most expensive places in the U.S. to stay, yet its occupancy still lags that of major mainland markets.
Across the Pacific, French Polynesia continues to set the benchmark, with nightly rates close to $500, nearly double Hawaii’s. We will have more to say on that soon, having just returned from there this week with a new perspective.
Why this split is happening.
From what we see and hear on the ground, Hawaii luxury demand remains resilient. That type of traveler is less price sensitive, tends to book farther in advance, and also targets specific locations and resorts.
The middle is a very different story. Families and repeat visitors have incurred years of increases across accommodations, taxes, fees, cars, and food. Many told us they paused, downsized, or went somewhere other than Hawaii, and now they are only willing to come back if the math works.
Readers have been blunt about their Hawaii travel plans all year. One long-time visitor wrote that Hawaii now feels like “cash cows” to be milked and said other destinations replaced their annual trips with lower prices, taxes, and fees.
We also hear somewhat the opposite from residents and some visitors who feel fees are needed to maintain natural and historic sites. Still, even that group is adamant in demanding transparency about whether the money actually reaches hiking trails, beach bathrooms, and road repairs.
Other forces matter too. Airline capacity has shifted away from Maui. Shoulder seasons have spread out. And when people feel squeezed at the grocery store, they rethink five-figure family trips. All of that shows up in Hawaii hotel occupancy first.
Where smart travelers are finding value right now.
If you are flexible on the island, Kauai’s strength tells you two things at once. First, if you want Kauai peak dates at popular properties, book earlier and be ready with alternatives. Second, if you are agnostic about which island and price-driven, watch Oahu. When prices flatten, quiet discounts often appear even if they are not headlined as sales.
If you have flexibility in trip timing, shoulder periods before and after the holidays and spring break are becoming more appealing than they were just one year ago. While we have seen luxury rates hold at many properties (think Four Seasons), the same hotel can have softer midweek rates or a four-night package where inventory needs help. That is when you try for an upgrade, a credit, or complimentary breakfast, which last year was entirely off the table.
If you are flexible on two stars or up, the split becomes clear. When four and five-star luxury stays firm but the mid-range softens, you can sometimes step up to the next level for about what you paid last year. Some of the best values are hidden. Renovated rooms and better views do not always cost much more and are worth checking for. We have seen that across the islands in our own travel planning, which we will soon report on, and it is an easy way to upgrade without blowing the Hawaii budget.
The neighbor island lens.
Kauai’s out-performance is real, and we see it daily while living here. Occupancy at 74.7% looks healthy, and pricing has more backbone than last year in the most popular North and South Shore areas. That does not mean there are no deals. It means you must widen your search. South Shore midweeks in shoulder months can surprise you. North Shore still swings with weather and access, so a traveler willing to use a flexible date search may find shifting a day or two will be a winning model more frequently than not.
On Oahu, softness is no guarantee for easy bargains. What it does create is a broader cost spread between oceanfront luxury and the second tier. If you can live without the marquee location, this may offer the exact right moment to upgrade to a better room class and still save compared with prime beachfront.
Maui remains more of a case-by-case situation. Some properties are running very strongly. Others are working harder around renovations and ongoing changes. The approach that seems to be working for hotels is to put together a value proposition through inclusions, such as free nights, rather than headline rate cuts or sales. If you are Maui-committed, put it together early or else last minute. And do not forget that the room rate is just one piece. The car, resort fees, taxes, and parking are the other pieces that can either turn an attractive-looking rate into a good or bad all-inclusive price.
What readers are telling us.
A reader told us they booked five nights in a small Kauai condo, and the fees alone were more than seven hundred dollars. That traveler still came, still loves the islands, but said they will come less often. Another reader said the message now feels like “pay up or get out,” and they will take the family to the mainland next time. On the other side, a local voice reminded everyone that many states charge for park entry and said value is in the eye of the visitor. We have also heard visitors say they do not mind paying more if they can see clear results in restrooms, lifeguards, and trail repairs.
That mix is the reality at the close of 2025. It is also why a split market makes sense. At the top, those travelers are still coming and paying top dollar. In the middle, guests have started drawing lines and looking harder at the value received. This report from the state is the first in a while to match what readers have been saying here for months.
What this means for your 2026 trip.
Expect the two-track market to continue, at least into early 2026 or longer. If broader demand cools, the mid-tier hotels will feel it first. That is where you should watch for more inclusions, loyalty promos that actually make sense, and quieter discounts of all types in shoulder periods. If demand stays steady, however, expect luxury to hold ground and to keep rewarding early decision-making and those with date flexibility.
Always plan with the full vacation bill in mind. The room rate is one line. Resort fees, parking, taxes, meals, and the rental car can push the total well above what most people expect, and those costs seem to vary significantly more than they did a few years ago. A so-called cheaper room can end up more expensive by the time you stack everything on top. Price the total itinerary, not the headline rate.
Finally, book with intention. Decide what you value most and aim your 2026 budget accordingly. If the resort experience is your goal, invest in the hotel and dine simply. If exploring matters more, choose a solid room in the right location and spend on experiences instead. Hawaii’s split market now rewards travelers who plan around value rather than price alone.
BOH’s take.
We are watching two Hawaiis emerging in island hotel pricing. One is the high end that keeps humming along at its own pace. The other is a more mainstream middle market that is finally leveling off after years of straight-up costs. That is not bad news. It is a signal.
Travelers who pay attention can save money, improve their stay, or do both. Residents who have shouldered the crush of the peak tourism season may also be getting a reprieve as mid-tier demand spreads more evenly across the calendar, as Hawaii has sought.
Have you seen this hotel split when booking Hawaii trips? Are you finding better deals on Oahu, or are you saving up for a Kauai luxury vacation? Tell us what is working, or what finally made you look elsewhere.
Lead Photo Credit: Beat of Hawaii at the 1 Hotel Hanalei Bay.
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I’m currently on a 14 day big island vacay. Everything is very affordable! Rental car, not just affordable, but cheap. You can still get 4 T-shirts for twenty dollars. Many fine eateries that serve the locals you can get complete, quality plates for twenty dollars(beverage not included). And as always, the ocean is still free.
Value really. Make room rates seem cheaper while beach parking, park admission fees, increase state TAT fees, 1% habitat Hawaiian fee, plus all the reservation admission fees as well as the manditory minimum 15% restaurant tip reservation fee and what’s left. You are virtually explaining value when all the money is being moved from one person’s pocket to the next person down the line. IMO sounds kinda like a line-sinker deal. If the hotel don’t get ya someone down the road eventually will.
IMO do your research. Hopefully this is not the same floor plan as Las Vegas as offering discounted room rates or value priced and then charging a lot more for resort fees, room amentities, wifi, coffee, soap, and such that used to be complementary. Did the prices of the restaurant, pool access, towel fee, cleaning fee, or non refundable room deposit increase? Compare the whole package not just the nightly room rate. IMO I don’t really think anything went down with the 18.25% raised to 19% TAT tax plus the 1% increase for supporting local Hawaiians habitat-culture tax imposed on tourists to take effect in the year 2026. IMO confused tourists make easier victims.
We just found great package deal on Costco Travel so I do think the middle tier is coming back. So happy to see that as we aren’t the ultra high spenders.