It isn’t just Hawaii that has gotten ridiculously expensive, and what goes up must come down. As we keep saying, this is a national and global situation. We’ve been reporting that here in Hawaii, Hawaii hotel and vacation rentals have skyrocketed. In Florida, skyrocketing hotel rates has now caused demand to cave. This comes as Florida’s version of Hawaii’s controversial HTA, Visit Florida, has warned today.
BOH: Various factors at play in two places that our visitors often rightly or wrongly compare. Dynamic pricing (constantly monitoring and changing costs based on perceived demand), may now start to put downward pressure on prices here in Hawaii as well as in Florida. This could bring at least some welcome relief, starting in the late summer and fall season. We expect prices to drop by about 25% on average, or more, in that period. This is fast-changing and something we’re continuing to follow.
Much like Hawaii, this news comes on the heels of a record-breaking 2022 Q1. Far faster than anticipated travel demand is a global phenomenon as economies recover and demand for a return to travel is unprecedented. Who doesn’t have the travel itch at the moment, it seems.
As a result of caving demand, it was reported that Florida hotels will need to re-calibrate pricing downward. That according to the state tourism board’s suggestions.
As with Hawaii, Florida’s international arrivals remain somewhat depressed with various continuing travel regulations. And it isn’t just the cost of hotels that’s hurting both Hawaii and Florida, but also the cost of airfare and other vacation costs. Florida doesn’t suffer as much on vehicles, compared with Hawaii car rentals, as it is as much a drive-to vacation destination as it is a fly-to one. Unlike Hawaii, many Florida visitors bring their own cars.
The Visit Florida tourism board was quoted as saying things that sound completely similar to Hawaii. “The last couple of years, we couldn’t set the prices high enough.” But now, “the strongest correlation [is] between rising room rates and declining demand… Inflation [is] actually starting to catch up with us in most markets.”
Also, as with Hawaii, high room rates continue to be reflected in increased overall revenue, but in both states, that could come to a fast stop.
More information on these related posts:
As Hawaii Hotels Soar To Highest In USA, What Visitors Can Do
Cost of A Hawaii Vacation | Hawaii Hotels and Vacation Rentals Skyrocket
Dynamic Pricing Just Drove Your Hawaii Airline Ticket Sky-High
Hawaii Visitor Fees: Perception, Value And An Egregious Example
Just returned from Four Hawaiian islands, car rental off the charts!
“The last couple of years, we couldn’t set the prices high enough.”
That statement alone says it all! Hotels, car rentals and all other related industries raise prices from greed. Once upon a time, executives received salaries based off a percentage times the wage of the highest paid employee (management level). CFO’s, Presidents, and other “leaders” of businesses are paid obscene wages and bonuses even in bad times for their company while denying paying living wages or laying off employees. No executive is worth the amount of money they receive (and I won’t get into sports figures or entertainment). If you treat people decently they will work for you, and if you’re reasonable in what you charge, people will use your products/venue.
Starbucks CEO Howard Schulz complaining yesterday he can’t connect with the new workers. They won’t work at the level he wants them to work for. Isn’t capitalism supposed to be supply and demand? Funny how it never seems to work in the employees favor.
All companies strive to maximize profits. The only thing that moderates that is competition.
Econ 101. But, they don’t understand anything about economics.
Got to be honest. This, like everything else in the USA (world) is pure nonsense! We are getting gouged by everyone- because they know that they can do it and there is nothing we can do about it!
Skipped Hawaii last year after 15+ years in a row. Hopefully going next January one last time but refuse to be “screwed over” by all this crap! Love Hawaii (and Florida) but refuse to be taken advantage of anymore!
Good point Mike. I can’t help but wonder, if there weren’t so many pickup trucks being used today, what would the price of gas be?
Aloha
That would be nice (price reductions). We’ll be there for 2 weeks as of Sep-9.
We live in a heavily touristed area of the FL panhandle (Pensacola to Tallahassee) and bookings are off 15-20% so far this summer/high season. We hear and agree that there is a direct correlation between renters and hoteliers jacking rates sky high and plummeting demand. We are not complaining about lighter traffic and ability to secure restaurant reservations, however.
We are looking forward to returning to Kauai next Feb and hope there will be at least a degree of return to normalcy.
But wait we are switching to away from goods to services and the consumer has over 2 trillion in savings. At least that’s what the “experts” say :-).