We are dumbstruck by something that hasn’t happened to this degree in a long time. This week, we received a number of advertisements for Hawaii hotel price reductions. At first, it didn’t seem very significant, but upon receiving more, it became hard to ignore. Is there a shift afoot?
This comes as Maui, for one, continues to struggle with visitor arrival numbers for a variety of reasons.
Hawaii is still renowned for its natural beauty and laid-back vibe, which have made it a top destination for travelers worldwide, especially those from the U.S. mainland. However, we have also faced widespread criticism due to soaring hotel prices, which have consistently placed Hawaii among the highest priced destinations in the United States. This situation has been exacerbated by Hawaii’s highest accommodation tax in the country.
Recent developments, however, suggest a potential shift in this trend, providing a glimmer of hope for both visitors and the Hawaii tourism industry.
Current landscape of Hawaii vacation costs.
While airfares are a factor to some degree, Hawaii accommodation costs are what represent the gas and brake pedals for visitors to come to the islands. For the past couple of years, Hawaii’s accommodations sector has been on a nonstop upswing in pricing, which we have referred to as the concept of “no amount is too high.”
But recent signs indicate an easing is beginning to occur. Various factors have contributed to this change, including economic shifts, the catastrophic Lahaina fire, overcooked prior price hikes across the state, and now far more stringent regulations on Hawaii vacation rentals. Notably, Maui’s controversial plan aims to eliminate half of its vacation rentals, a move that has sparked significant debate and concern among visitors and industry stakeholders.
Emerging Hawaii deals and promotions.
This week alone, we’ve observed an unusual number of advertisements heralding price drops in Hawaii hotel stays, a phenomenon that has not been seen to this extent here in quite some time. Aston Maui Kaanapali Villas is offering a striking deal of $313 per night for an ocean-view studio, including dates in July, including all taxes and fees. Travelzoo advertised a flashy but less impressive 45% savings at Kaanapali Beach Hotel, with rates as low as $349 for a garden view. Moreover, Pleasant Holidays, a long-time Hawaii-centric agency, has revived its legacy “Free Nights in Hawaii Vacation Sale,” including free car, signaling a return to more traditional, pre-spiral pricing strategies.
These promotions are not confined to the places mentioned above or Maui alone. On Kauai, Waimea Plantation Cottages, for example, slashed their prices for one-bedroom ocean-view cottages, with rates starting at $358 per night (including all taxes and fees), inducing a broader trend across all of the islands. Oahu, with the lowest nightly room rates, may be the last to see the benefit, but that, too, remains to be seen.
Hawaii visitor reactions awaited.
Clearly, the steep increases in hotel prices have been a leading sore point, causing many longtime Hawaii visitors to reconsider their loyalty to the islands as their chosen vacation destination. However, the recent price drops will likely spark some renewed interest, suggesting that while the high costs have permanently deterred some, others see these changes as an opportunity to revisit the islands.
Our visitor comments reflect a broad spectrum of opinions. Thousands of comments have expressed frustration over past price gouging and the regulatory challenges that lie ahead for Hawaii vacation rentals. Others remain hopeful that they will return to Hawaii. These new deals are a sign of more reasonable pricing ahead, making Hawaii accessible once again to a broader audience. We await your thoughts on this just-beginning trend.
Analysis of Hawaii hotel price reductions.
The industry’s long-awaited adjustment in pricing strategy could counteract the negative impact of decreased visitor arrivals and criticisms over affordability. By reintroducing more competitive rates and special promotions, Hawaii may be able to rejuvenate its appeal to more potential new and returning visitors, balancing the need for economic sustainability with accessibility.
It’s too soon to declare a definitive shift in Hawaii’s travel costs.
The current beginnings of softer Hawaii hotel prices are a welcome change. They suggest that the industry here is more responsive than we thought to the challenges ahead and is seeking a balance that will ensure the sustainability of Hawaii tourism while addressing the concerns of visitors and residents alike. As this trend develops, it will likely play a critical role in shaping the future of Hawaii tourism.
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It’s not realistic to compare pre-Covid prices to today’s prices. Inflation has reared its ugly head in the interim. You will never see pre-Covid prices again, because the expenses for businesses have inflated rapidly, property insurance has become astronomical because of fires and floods, and the government has almost doubled property tax assessments and rates.
For the visitor, wages have not kept up, so they are feeling the pain acutely. It kind of reminds me of the ‘70’s and ‘80s, when inflation and interest rates went off the charts, and wages scrambled to keep up.
If hospitality businesses were to charge the same rates as those of 2019, they would quickly go bankrupt.
A shakeout is in the offing.
It’s all part of their long-term strategy: get rid of STR’s, comfort the distraught visitor with “discounts,” then jack prices back up when they’ve eliminated the competition. Just like drug dealers…
You’ve got it down, Kathy. Very insightful and absolute truth. It’s happened in every other city where the Hotel Lobby has been able to ban Airbnb’s.
Hotel prices have gotten out of hand. And, your Governor wants to have less people coming there. Even, if it hurts the locals and economy. Making slaves of locals so to cater to the Rich.
Oh oh… the riff raff are going to start making a come back. Don’t tell the Governor.
Gov Green and Mayor Bissen hate local businesses and local workers. They continue to promote various fees and penalties against affordable tourism in the hope that they can create their utopian tourism world where only the super rich visit and spend incredible amounts of money. The reality is that most of the local businesses survive on the middle class tourist and not the ultra wealthy.. the local BBQ stand isn’t offering Cristal champagne mimosas for $150 a glass. While it’s a shame that an organic Maui raised cattle burger costs $25, again the taxes and fees on businesses and fuel are part of the issue.. more proof of the dislike of politicians against local businesses and workers.
Wish airlines were more reasonable. Cost so much for us to fly from the east coast
Jobless rate will also tick up as the global economy slows:
thegardenisland.com/2024/05/18/business/jobless-rate-rises-in-april/
I really want to come see Maui, but the rates for the places open are unreal. If they want us to come spend money to help the economy, then start by dropping the rates 50%, because that’s what they raised them. We want to spend $$ at the local shops , not on some room we barely are in.
“It’s too soon to declare a definitive shift in Hawaii’s travel costs. ”
Agreed, the rates quoted are for studios and still way to high!
Once Greene buckles down on STR, …the $$$$$$ trend will go upward
Maybe, but you’re likely talking about years and years from now after there is an immediate Court injunction putting a stay on the new law until this is decided by the U.S. Supreme Court.
Then their politicians can throw up their hands and say, “We tried!”
But in the interim, potential Maui visitors are sent the message, “You’re really not wanted here.” Should the politicians playing dangerous games pitting groups of locals against each other be liable for damaging the economy?
Hi! Where can I find this reduced rate Aston Maui Kaanapali Villas of $313 including taxes?
I checked the Aston website but the cheapest rate is $389 plus taxes !
Appreciate your help
The wiping out of short term rentals is neither sensical or prudent. It has been particularly beneficial to tourists, local revenue coffers,
the cadre of a host of working staff and owners who have steadfastly worked to assist the Maui community.
Lower prices are here to stay. The latest statistical data available either on HTA website or UHERO shows that airlines have reduced their seat capacity by more than 20%, bookings are anywhere from 30 – 50% less on books than last year and household debt in the U.S. is now $17 trillion, of which $180 billion was just added since Dec 2023, delinquencies are up… Also, given our recent crises, wealthy travelers have chosen to spend their money in other Sun Destination like Maldives or French Polynesia with the rates far exceeding Hawaii rates.
Certainly glad to see the prices of hotel rooms In Hawaii going down. However, it must be said that the taxes that are charged are outrageous.
Attention: just in time “Special Prices” to draw in much needed Revenue, the school aged kids will be out of school for vacation. How long will the drop in Prices last, my Best advice would be to ask Governor Green or any Politician. If this Ploy doesn’t produce as well as they are hoping, maybe they can toss in Free Ice-cream to sweeten the deal. Everyone, including the Government, is sweating this slow down. There’s not enough money coming in to keep all of their ridiculous programs going. Like in Dominos, they’re afraid that they will all come falling down. Hawaii seems to operate like a Ponzi Scheme. I’m calling it like I, and others, see it!
The tough thing for hotels is that property taxes and other expenses continue to rise. So some of the increase covers overhead. The State and Local Counties are not going to roll back taxes. Taxes just keep going up. Look at Princeville where that hotel was a Westin, then a Ritz Carlton and now some kind of wellness place, each time the room rates increased. I think the driving force is overhead which forces upscaling properties. At some point, you can’t go any more upscale, then what?
Hi Alfred.
You make good points. Thanks for so many comments over the years!
Aloha.
Tough for hotels? Hmmm Hotels pay less taxes than any other sector. Look at the chart for property taxes alone. If the hotels paid their fair share in taxes & to their employees, we would be in much better shape. Hotels can afford lobbyists & to sweeten deals with politicians. We’re not nearly out of the woods but instead sinking deeper. Many visitors will see this as a last chance to visit before the STRs disappear & rates skyrocket. We better enjoy the little surge in tourism -if we can. It’s too late for many. Top employees are transferring out & families are leaving because they need to do what is best. Not bc of lack of housing! That is not staying where the economy is falling.
I visit the Big Island for 4 months each year, always staying at the Mauna Kea for a few nights to recover from jet lag, before moving into my Airbnb for the remainder of my stay.
This year, I am coming in the second week of August, which should be the slowest season of the year. And I can tell you that the Mauna Kea’s rates have tripled this year, compared to last year’s pricing. I have not booked a hotel because of this.
I could only gasp when I read those prices as “good deals”. We have always stayed in condos on any of the islands, with an ocean view, and have never paid more than $189/night. Since our last trip, the prices have risen so astronautically, that our last trip may have been, unfortunately, our last trip.
I will be on Maui tomorrow with a package I purchased from Costco Travel last December. I’ve shopped every day since not found a deal anywhere close.
Last Saturday I booked a package thru Costco for BI in October awesome deal including flights. Next day it doubled in price.
3 weeks ago booked our August trip to Las Vegas, again Costco, it’s now doubled in price.
What I’m leading too if you see a deal book it good chance next day deal will be gone.
Hi Richard.
Good point. We find the same thing to be true. One day we rent a car, and next day the rate is double.
Aloha.
I have been going to maui for over 5 years, Always staying at resort hotels. This is the first year that I have shopped for the cheapest time of year, and decided not to stay in a hotel due to the rise in prices, this may be my last trip to maui. I hope to see some moderation in hotel prices, otherwise I’m out
Seems pretty simple. Soft bookings lead to discounted prices(already way too high in the world market) to entice more visitors. The marketplace is at work, a bit overdue but this price bubble fever appears to be breaking. Thank goodness.
Other than when I am staying in a condo on Maui, then and only then is when I will actually stay in a hotel or a resort on Any of the other Islands. Having said that, the only time that I stay in those hotels is when I am cashing in literally hundreds of thousands of points to stay there because there is no way that I will ever pay the normal prices for a hotel room anywhere in Hawaii. I also do not just hang around the hotels and eat in their restaurants either so local food places usually get my business too. And now that the place where I normally stay on Maui is on “the list” I will say that my last stay back in March will end up being my last stay.
@DonK… If you’re not ever coming back to Maui, why are you still hanging around BOH’s site commenting all the time? If you’ve decided for your own reasons, why you won’t return again, we really don’t need to read anymore of your comments. Everybody has the right to make their own decisions, once made, we really don’t need to continue to hear from you again.
Thank you CB. In Hawaii’s defense, there are many places just as expensive. Look at California for comparable and see similar rates. California is not close to being Hawaii. Our taxes are high and the fees charged by Vrbo and Airbnb can be $1000 for one week. They charge bot host and traveler. Book direct. Be loyal to your host or get a referral. Help us fight this ridiculous ban before it is too late for us. We need your support. Many of our leaving not because of lack of housing but loss of income and opportunity for a future. Jobs are cutting back and lowering pay left and right. Banning this many STRs is not the answer.
CB thanks for your comment but wouldn’t your thought apply to all the commenters who left the response not returning because of price or greed. Some tourists are saddened when what used to be is gone and unexpected fee’s like beach fees,parking at beaches, and to have to pull out the wallet every five minutes gets old. Without this resource how does Don K know if things have not changed for the better. What’s with get off of BOH’s site? IMO that’s not Aloha and a bit extreme.
As if I really care what you or any of the other “likers” think and of course I may change my mind so there’s that!
Hotel-AirBNB prices in Hawaii are 2-3X the price precovid. They have a long way to fall.
Because the Airbnb and Vrbo fees are incredibly high. They started out fair but they are also outrageous now for just an advertising platform. Look into the price hikes on these platforms BOH.