The sharp increase in Hawaii hotel room prices in recent years has raised concerns among industry suppliers about potential impacts on customer choices for travel destinations. Pleasant Holidays CEO Jack Richards highlighted the premium of “roughly $175 to $200” in Hawaii room rates compared to destinations like Mexico and the Caribbean. However, Richards pointed out the lack of fairness in this comparison due to the prevalence of all-inclusive options in the latter destinations, which significantly impact overall costs.
Richards further emphasized that additional fees beyond room rates were contributing to the overall cost of a Hawaii vacation. These extra expenses include resort fees, parking fees, and food and beverage costs, fueled in part by the Hawaii accommodations tax. As a result, the overall cost of a Hawaii trip has continued to rise, impacting the affordability of the destination for travelers.
Data from the Hawaii Department of Business, Economic Development, and Tourism revealed a significant increase in per-person, per-day spending by U.S. visitors, jumping from $194 in 2019 to $242 in February. These rising costs have led to concerns among industry executives about the potential consequences on visitor demand and preferences.
Industry leaders highlighted the high quality of resorts in Mexico and the Caribbean, noting that the recent investments in these destinations have made them more competitive against Hawaii. ALG Vacations group president Ray Snisky pointed out the significant improvements in Mexican resorts, offering luxury experiences at prices comparable to high-end properties in Hawaii. This shift has created a value trade-off for customers, who may opt for extended stays in all-inclusive resorts over shorter trips to Hawaii due to cost considerations.
While Hawaii’s five-star hotels and resorts remain competitive in price with their counterparts in Mexico and the Caribbean, concerns were raised about the affordability of four-star accommodations in Hawaii. Classic Vacations CEO Melissa Krueger highlighted the disparity in pricing, indicating that Hawaii struggles to compete in the four-star category. This could potentially impact the overall attractiveness of Hawaii as a travel destination for a broader range of visitors.
The rising hotel room prices in Hawaii are posing challenges for the tourism industry, particularly in comparison to competing destinations like Mexico and the Caribbean. The additional fees associated with Hawaii vacations and the increasing visitor spending have raised concerns about the overall affordability of the destination. As travelers continue to evaluate value trade-offs and compare resort quality across different markets, Hawaii may need to address pricing strategies to remain competitive in the evolving travel landscape.