57 thoughts on “Once Coveted Hawaii Vacation Rentals Plummet 48% In Popularity”
Terry Ann R
Last month we cancelled our 3 week vacation rental in Kona for February 2024. This is after going to Kona for the past 3 years. We cancelled it when we were at an all-inclusive resort in Mexico. For 3 weeks the vacation rental alone came to $5k and we still needed to budget for food, which we were planning around $1500. This year we were not going to rent a car to save money. We did the math. The cost of the vacation rental alone can pay for 2 – 10 day stays at the Mexican resort that includes all food (food is amazing) and drinks (alcohol and non-alcoholic). Our airfare is a little more but what we budgeted for food easily covers airfare.
Being retired Hawaii just isn’t financially viable anymore.
We have visited maui 3 times, 2013, 2018, 2023, Oahu 2018 and the big island 2023. This September 2023 we were not sure what to expect in Maui after the devastating fire but we wanted to support the economy. We rented in kiehi area. We did notice the tourism was down, no line ups or crowed beaches. The locals were very opened and begged us to ask people through social media, please come and support us, we need the tourism. They were upset with the news and governor for turning the tourist away. I personally didn’t feel the prices for accomodations and food was much different than our previous visits. It’s our 1st choice for a vacation. Love the locals and vibe.
I always go to the Island of Hawai’i for 2-4 months at a stretch. I was just there for 4 months this summer/fall. I too did not notice an increase in prices for vacation rentals or for food. As always, the locals and the ancestors welcomed me. I stay in a remote area with few rentals, and the vacationers and neighbors all got along. When you go back to the same place time and again, you become part of the fabric of that neighborhood. I have a community there now, because I’ve been going so long. I could never afford to stay in a hotel that long, nor would I ever want to. I want to experience Hawai’i, not a tourist trap.
Heading to Kihei, Maui in a week…fourth time in 2023. I plan/book months, even a year ahead on flights, rental car and condos. Earlier is better and I’ve yet to be charged any hidden fees. I book accommodations on either AirBNB or VRBO. You have to shop around and by now I know which places suit me or not. I do love Maui but the price of paradise may box me out sooner than I’d hope for. Maui No Ka Oi.
Hawaii is not as appealing as it was before due to skyrocketing hotel rates and inferior quality.
Aloha means being gouge and ripped off.
I hope the tourists industry for Hawaii come up with some kind of model to make Hawaii more appealing.
I love Hawaii…all the islands, but I have been going to Maui almost every year since I was a kid. It’s a tragedy what has happened to LaHaina. I hope the Federal, State and local government along with the local community can come up with a plan for locals to be housed until rebuilding is completed. Hopefully they can rebuild LaHaina in a way that benefits and is acceptable to locals while still allowing business to flourish and help reestablish an economy that benefits locals. Keep the donations coming to help support our friends in Hawaii.
IMO there’s a truly massive paradigm shift underway in regard to Hawaii’s tourism industry ( and economy in general). I think we’re only seeing the first waves of it right now. Where it’s all going Lord knows… The folks in the industry who’ll come out on top will be the ones who recognize what’s happening, are willing to adapt to reality and not try to cling to a wishful status quo. JMHO…
I’ve been a huge fan of Hawaii vacation rentals for decades. But as a result of pricing, including fees, especially, have become less enamored. I still look at them for each trip we take. But we are finding ourselves staying in more hotels and liking it.
Are these hotels you are staying at on Maui? Maybe hotels compare favorably to vacation rentals on other islands, but on Maui the hotel prices are off the charts, and the fires did nothing to curtail the prices rising even more. The vacation rentals here (on Maui) offer a much better value, from what I can see looking at Airbnb and VRBO. No comparison.
I have a condo in Lahaina. I have not felt the drop in rentals yet but I tell the truth on my web.It truly is a piece of heaven !You get what I say you get.No hidden fees.
Eileen
We’ve stayed in Maui earlier this year before the fires. Between then and now we have seen inflation creep up in nearly every expense in just 6 or 7 months. Even with a solid employment income, Hawaii is becoming unaffordable for all but the top earners.
It seems like the lawmakers are wanting fewer people coming in who spend more. So, billionaires only, not people like me. Plus, with billionaires only, think of the type of energy it would bring if those were the only types of people “allowed” on our sacred islands.
In recently researching AirBnB two different times for very short stays on Kauai, I found the assures confusing, from no additional fees to some that doubled the cost, and everything in between. In most cases. I had to contact the owner for clarification.
I also read the reviews very carefully, which disclosed a lot of information about the amenities—no AC, shared pool, parking, etc
We are 35-year-plus visitors to Maui. We were Kaanapali hotel fans for the first 15 years – we loved the resort atmosphere. Prices pushed us to STVR in Kaanapali and we haven’t looked back. We can stay close to the beach (walk to it) and have more amenities in our rooms. We stay in the same area, but rarely in the same condo — we look for the best deal. We just returned from a late October trip and spent about 300/nite including taxes, parking, and other idiot fees. That’s been our average for the last 5-years. At times we, too, have negotiated lower rates. We still don’t understand why people stay at the resorts at more than 3X the price per night. People who say it’s expensive aren’t looking in the right places.
I never stay in a hotel if I can get a vacation rental. I’d much prefer to experience a new place at the neighborhood level. After all, isn’t that what travel is about? Learning about new cultures?
Gloria, I hear you, but please also consider that we local neighbors may not really see a revolving door of strangers as a desired addition to our beighborhood or condo complex. The money you spend on your AirBnB eventually contributes to pricing us out of our neighborhoods.
I know what you’re saying is a common perception, but I don’t think Airbnb’s are the cause of the housing shortage, or for the escalating rental/mortgage prices. If you look at the research that isn’t done by organizations with skin in the game, you might find that vacation rentals account for less than 1% of the housing market. Anything other is a myth generated by the hotel lobby. But I understand that you’d prefer to have neighbors in your neighborhood, not strangers. I think the world is changing though. Most neighbors don’t know each other like they once did. I love Hawai’i and hope to move there full time someday, instead of just coming for 4-6 months each year. Unfortunately, at 74, my husband still has to work.
Gloria, thank you for actually studying the numbers and the impacts.
Especially here on Maui, no neighborhoods are being compromised. The vast majority of vacation rentals here are condos that were built in the 70’s and 80’s, and those condos were built in resort areas specifically designed for renting short-term. No parking, play areas, storage, etc. They were never filled with owners and long-term renters. No neighborhood destruction here, or snatching of long-term rentals from the residents.
The real answer is to build more affordable housing. But the numbers won’t work for developers, so IMO the government needs to subsidize the developers by raising taxes on us residents. Hawaii has the lowest resident taxes in the country.
4
Alex
AirBnB and VRBO industry manipulation of research in this area is massive.
Take a look around Hawaii neighborhoods. Every widespread behavior that would increase the cashflow that one can earn from residential housing — such as vacation rental revenue — will over time get priced into the underlying property value. That is what is happening in our areas, house by house, condo by condo, long term residents are being out.
PatG
Agreed, Moleko, anyone here saying they are liking hotels better than vacation rentals must be able to afford that 3X cost for half the space. Top 1% folks for which money is no object.
And I also agree that the “real “answer to the housing shortage is not to ban Airbnb’s—a preferred choice in lodging for many people—but “to build more affordable housing.” I am not schooled in resident taxes, so I cannot speak to that. But to me, I think the real problem with building is outdated permitting and zoning and construction costs.
We just returned from a week’s stay at a vacation rental in Kaanapali. We have always chosen a vacation rental/condo over a hotel room because of the amenities they offer and will continue to do so. The condo’s owner is a great person to deal with and we have been very happy with our stays at their condo (3rd time).
Once I find a great vacation rental, I go back over and over again, staying for months at a time. It’s nice to travel and feel like “home.” I’m also a vacation rental host, and my guests do the same with my home. The nice thing about that, is they are known quantities to me. I don’t have to go through the hassle of vetting them, which I do diligently for every guest, to make sure only upstanding people are coming into my neighborhood.
Hawaii, particularly Maui, has become so expensive with all the added fees and expensive car rentals, that we no longer go there. We’re finding beautiful places right here on the mainland. Especially all the wonderful National Parks. Florida and Arizona are perfect for the winter months.
I do not believe these numbers regarding vacation rentals. The Hotel Lobby has gotten into lawmakers pockets, as such, most hosts are not allowed to short term rent anymore. Big business was able to put many little mom and pop shops out of business, not only here in Hawai’i, but across the country. Making hay on their win, the hotels have jacked up their prices and are adding on fees that are not disclosed until the guest arrives on site. And yet with no vacation rentals to book, travelers have no other choice but to comply. I have been a STVR host for 10 years. A 65 year old woman who was making enough money to travel for the first time in my life. I can tell you, this is a very terrible situation for me, and for many other hosts like me.
Our group rented an amazing 4 bedroom, 4 bath, ocean view house with a pool in March of this year in Princeville through VRBO for about $1000 per night. In June, I went to the management agency’s website to see about renting for spring of 2024 (hoping to save the VRBO skim) and saw the price had more than doubled to $2020 per night. Just recently, I emailed the management company and asked if they’d accept the previous rate of $1000 per night and they readily accepted. We decided to stay for two weeks. It pays to ask!
I hope it’s not what I fear, which is that negative posts by the Hawaiian government and experiences of individuals has soured people on the islands. If so, tough lesson to learn, but after Covid, there’s no sympathy. Suffer the for thine actions.
Nah, I’ve heard talk around town that the current level of tourism in Maui is very much preferred, in fact many hope that tourism lessens even more. Those who don’t rely on tourism just find life more navigable now, with fewer visitors on the beaches and in the restaurants, stores, highways, etc.
Maybe this is the way it should stay. Yes, it means many will lose jobs and will have to move off-island (Las Vegas seems to be a popular destination lately), but that’s what happens when a dying economy is encouraged and promoted.
I haven’t experienced any “undisclosed fees” when I’ve stayed at short-term rentals on the mainland. Is it different here in Hawaii? What are the undisclosed fees?
When you search for a STVR on Airbnb and VRBO, you punch in your travel dates, and the website generates a quote with every fee attached, including a hotel tax. Actually, what you just said about STVR’s is what my husband just experienced at a hotel on the mainland. Fees that were not disclosed until he arrived on site.
VRBO and AirBnB do disclose all fees but you must click on Price Details to see them…..and they vary. In my experience….the corporate bookers charge more junk fees than individuals owners. Aloha!
Yes, I know those are the fees, but which ones were undisclosed at the time of booking? That’s definitely a problem if Hawaii springs those fees on guests some time after booking.
Parking for one. Furthermore looking at rates and then realizing the final price is so much more.
We’ve also had a range of vacation rentals challenges, mostly in the past year. Photos misrepresented amenities for one thing and even the basic facilities. Difficult to reach and deal with host companies for another. Not a total turn-off to vacation rentals, but rather a big wake-up call. We’re doing like Sherri and totally vetting vacation rentals.
Were the challenges you experienced in Hawaii or elsewhere?
Beat of Hawaii
Hi Pat.
Mostly in Hawaii.
Aloha.
PatG
I don’t think that any of those fees are undisclosed – they are all itemized and the total is known before booking. At least that’s how it is on Airbnb, VRBO, Booking, etc.
I am a vacation rental host, sharing my home with others whenever I travel. There are no undisclosed fees. When you punch in your travel dates, a quote is generated with all the fees included, giving a total price for the stay.
Last month we cancelled our 3 week vacation rental in Kona for February 2024. This is after going to Kona for the past 3 years. We cancelled it when we were at an all-inclusive resort in Mexico. For 3 weeks the vacation rental alone came to $5k and we still needed to budget for food, which we were planning around $1500. This year we were not going to rent a car to save money. We did the math. The cost of the vacation rental alone can pay for 2 – 10 day stays at the Mexican resort that includes all food (food is amazing) and drinks (alcohol and non-alcoholic). Our airfare is a little more but what we budgeted for food easily covers airfare.
Being retired Hawaii just isn’t financially viable anymore.
We have visited maui 3 times, 2013, 2018, 2023, Oahu 2018 and the big island 2023. This September 2023 we were not sure what to expect in Maui after the devastating fire but we wanted to support the economy. We rented in kiehi area. We did notice the tourism was down, no line ups or crowed beaches. The locals were very opened and begged us to ask people through social media, please come and support us, we need the tourism. They were upset with the news and governor for turning the tourist away. I personally didn’t feel the prices for accomodations and food was much different than our previous visits. It’s our 1st choice for a vacation. Love the locals and vibe.
I always go to the Island of Hawai’i for 2-4 months at a stretch. I was just there for 4 months this summer/fall. I too did not notice an increase in prices for vacation rentals or for food. As always, the locals and the ancestors welcomed me. I stay in a remote area with few rentals, and the vacationers and neighbors all got along. When you go back to the same place time and again, you become part of the fabric of that neighborhood. I have a community there now, because I’ve been going so long. I could never afford to stay in a hotel that long, nor would I ever want to. I want to experience Hawai’i, not a tourist trap.
Let’s make sure they’re legal
Heading to Kihei, Maui in a week…fourth time in 2023. I plan/book months, even a year ahead on flights, rental car and condos. Earlier is better and I’ve yet to be charged any hidden fees. I book accommodations on either AirBNB or VRBO. You have to shop around and by now I know which places suit me or not. I do love Maui but the price of paradise may box me out sooner than I’d hope for. Maui No Ka Oi.
Hawaii is not as appealing as it was before due to skyrocketing hotel rates and inferior quality.
Aloha means being gouge and ripped off.
I hope the tourists industry for Hawaii come up with some kind of model to make Hawaii more appealing.
I love Hawaii…all the islands, but I have been going to Maui almost every year since I was a kid. It’s a tragedy what has happened to LaHaina. I hope the Federal, State and local government along with the local community can come up with a plan for locals to be housed until rebuilding is completed. Hopefully they can rebuild LaHaina in a way that benefits and is acceptable to locals while still allowing business to flourish and help reestablish an economy that benefits locals. Keep the donations coming to help support our friends in Hawaii.
Imagine you owned a store and your business was down 50%. What does that mean to you the owner.
Vacation rentals are our store and we are looking at massive operating losses and reduced tax revenue.
The economic forecast for Maui is dismal, as long as we continue giving tourists the cold shoulder..
Want to see Lahaina rebuilt? It the tourists who will do that.
IMO there’s a truly massive paradigm shift underway in regard to Hawaii’s tourism industry ( and economy in general). I think we’re only seeing the first waves of it right now. Where it’s all going Lord knows… The folks in the industry who’ll come out on top will be the ones who recognize what’s happening, are willing to adapt to reality and not try to cling to a wishful status quo. JMHO…
Best Regards
I’ve been a huge fan of Hawaii vacation rentals for decades. But as a result of pricing, including fees, especially, have become less enamored. I still look at them for each trip we take. But we are finding ourselves staying in more hotels and liking it.
Are these hotels you are staying at on Maui? Maybe hotels compare favorably to vacation rentals on other islands, but on Maui the hotel prices are off the charts, and the fires did nothing to curtail the prices rising even more. The vacation rentals here (on Maui) offer a much better value, from what I can see looking at Airbnb and VRBO. No comparison.
I have a condo in Lahaina. I have not felt the drop in rentals yet but I tell the truth on my web.It truly is a piece of heaven !You get what I say you get.No hidden fees.
Eileen
We’ve stayed in Maui earlier this year before the fires. Between then and now we have seen inflation creep up in nearly every expense in just 6 or 7 months. Even with a solid employment income, Hawaii is becoming unaffordable for all but the top earners.
It seems like the lawmakers are wanting fewer people coming in who spend more. So, billionaires only, not people like me. Plus, with billionaires only, think of the type of energy it would bring if those were the only types of people “allowed” on our sacred islands.
Aloha BOH,
I only stay in hotels on Kauai, Big Island, and previously Maui on points. Did include some cash for oceanfront at Mauna Kea coming up in 2024.
In recently researching AirBnB two different times for very short stays on Kauai, I found the assures confusing, from no additional fees to some that doubled the cost, and everything in between. In most cases. I had to contact the owner for clarification.
I also read the reviews very carefully, which disclosed a lot of information about the amenities—no AC, shared pool, parking, etc
Hi Sherri.
You sound like a good travel shopper!
Aloha.
We are 35-year-plus visitors to Maui. We were Kaanapali hotel fans for the first 15 years – we loved the resort atmosphere. Prices pushed us to STVR in Kaanapali and we haven’t looked back. We can stay close to the beach (walk to it) and have more amenities in our rooms. We stay in the same area, but rarely in the same condo — we look for the best deal. We just returned from a late October trip and spent about 300/nite including taxes, parking, and other idiot fees. That’s been our average for the last 5-years. At times we, too, have negotiated lower rates. We still don’t understand why people stay at the resorts at more than 3X the price per night. People who say it’s expensive aren’t looking in the right places.
I never stay in a hotel if I can get a vacation rental. I’d much prefer to experience a new place at the neighborhood level. After all, isn’t that what travel is about? Learning about new cultures?
Gloria, I hear you, but please also consider that we local neighbors may not really see a revolving door of strangers as a desired addition to our beighborhood or condo complex. The money you spend on your AirBnB eventually contributes to pricing us out of our neighborhoods.
I know what you’re saying is a common perception, but I don’t think Airbnb’s are the cause of the housing shortage, or for the escalating rental/mortgage prices. If you look at the research that isn’t done by organizations with skin in the game, you might find that vacation rentals account for less than 1% of the housing market. Anything other is a myth generated by the hotel lobby. But I understand that you’d prefer to have neighbors in your neighborhood, not strangers. I think the world is changing though. Most neighbors don’t know each other like they once did. I love Hawai’i and hope to move there full time someday, instead of just coming for 4-6 months each year. Unfortunately, at 74, my husband still has to work.
Gloria, thank you for actually studying the numbers and the impacts.
Especially here on Maui, no neighborhoods are being compromised. The vast majority of vacation rentals here are condos that were built in the 70’s and 80’s, and those condos were built in resort areas specifically designed for renting short-term. No parking, play areas, storage, etc. They were never filled with owners and long-term renters. No neighborhood destruction here, or snatching of long-term rentals from the residents.
The real answer is to build more affordable housing. But the numbers won’t work for developers, so IMO the government needs to subsidize the developers by raising taxes on us residents. Hawaii has the lowest resident taxes in the country.
AirBnB and VRBO industry manipulation of research in this area is massive.
Take a look around Hawaii neighborhoods. Every widespread behavior that would increase the cashflow that one can earn from residential housing — such as vacation rental revenue — will over time get priced into the underlying property value. That is what is happening in our areas, house by house, condo by condo, long term residents are being out.
Agreed, Moleko, anyone here saying they are liking hotels better than vacation rentals must be able to afford that 3X cost for half the space. Top 1% folks for which money is no object.
I agree about the top 1%. It is not pono.
And I also agree that the “real “answer to the housing shortage is not to ban Airbnb’s—a preferred choice in lodging for many people—but “to build more affordable housing.” I am not schooled in resident taxes, so I cannot speak to that. But to me, I think the real problem with building is outdated permitting and zoning and construction costs.
We just returned from a week’s stay at a vacation rental in Kaanapali. We have always chosen a vacation rental/condo over a hotel room because of the amenities they offer and will continue to do so. The condo’s owner is a great person to deal with and we have been very happy with our stays at their condo (3rd time).
Once I find a great vacation rental, I go back over and over again, staying for months at a time. It’s nice to travel and feel like “home.” I’m also a vacation rental host, and my guests do the same with my home. The nice thing about that, is they are known quantities to me. I don’t have to go through the hassle of vetting them, which I do diligently for every guest, to make sure only upstanding people are coming into my neighborhood.
Hawaii, particularly Maui, has become so expensive with all the added fees and expensive car rentals, that we no longer go there. We’re finding beautiful places right here on the mainland. Especially all the wonderful National Parks. Florida and Arizona are perfect for the winter months.
I do not believe these numbers regarding vacation rentals. The Hotel Lobby has gotten into lawmakers pockets, as such, most hosts are not allowed to short term rent anymore. Big business was able to put many little mom and pop shops out of business, not only here in Hawai’i, but across the country. Making hay on their win, the hotels have jacked up their prices and are adding on fees that are not disclosed until the guest arrives on site. And yet with no vacation rentals to book, travelers have no other choice but to comply. I have been a STVR host for 10 years. A 65 year old woman who was making enough money to travel for the first time in my life. I can tell you, this is a very terrible situation for me, and for many other hosts like me.
Our group rented an amazing 4 bedroom, 4 bath, ocean view house with a pool in March of this year in Princeville through VRBO for about $1000 per night. In June, I went to the management agency’s website to see about renting for spring of 2024 (hoping to save the VRBO skim) and saw the price had more than doubled to $2020 per night. Just recently, I emailed the management company and asked if they’d accept the previous rate of $1000 per night and they readily accepted. We decided to stay for two weeks. It pays to ask!
I hope it’s not what I fear, which is that negative posts by the Hawaiian government and experiences of individuals has soured people on the islands. If so, tough lesson to learn, but after Covid, there’s no sympathy. Suffer the for thine actions.
We loved going to Kauai for 20 plus years. We don’t go now as we feel very unwelcome and shunned. Makes me sad. But we now go to Tahiti or Caribbean
Nah, I’ve heard talk around town that the current level of tourism in Maui is very much preferred, in fact many hope that tourism lessens even more. Those who don’t rely on tourism just find life more navigable now, with fewer visitors on the beaches and in the restaurants, stores, highways, etc.
Maybe this is the way it should stay. Yes, it means many will lose jobs and will have to move off-island (Las Vegas seems to be a popular destination lately), but that’s what happens when a dying economy is encouraged and promoted.
I haven’t experienced any “undisclosed fees” when I’ve stayed at short-term rentals on the mainland. Is it different here in Hawaii? What are the undisclosed fees?
Hi Pat.
Cleaning fees, rental/reservation fees, cancellation/change fees, resort fees, credit card fees, security deposit/damage waivers.
Aloha.
When you search for a STVR on Airbnb and VRBO, you punch in your travel dates, and the website generates a quote with every fee attached, including a hotel tax. Actually, what you just said about STVR’s is what my husband just experienced at a hotel on the mainland. Fees that were not disclosed until he arrived on site.
VRBO and AirBnB do disclose all fees but you must click on Price Details to see them…..and they vary. In my experience….the corporate bookers charge more junk fees than individuals owners. Aloha!
Yes, I know those are the fees, but which ones were undisclosed at the time of booking? That’s definitely a problem if Hawaii springs those fees on guests some time after booking.
Hi Pat.
Parking for one. Furthermore looking at rates and then realizing the final price is so much more.
We’ve also had a range of vacation rentals challenges, mostly in the past year. Photos misrepresented amenities for one thing and even the basic facilities. Difficult to reach and deal with host companies for another. Not a total turn-off to vacation rentals, but rather a big wake-up call. We’re doing like Sherri and totally vetting vacation rentals.
Aloha.
Were the challenges you experienced in Hawaii or elsewhere?
Hi Pat.
Mostly in Hawaii.
Aloha.
I don’t think that any of those fees are undisclosed – they are all itemized and the total is known before booking. At least that’s how it is on Airbnb, VRBO, Booking, etc.
I am a vacation rental host, sharing my home with others whenever I travel. There are no undisclosed fees. When you punch in your travel dates, a quote is generated with all the fees included, giving a total price for the stay.