If you're staying in the islands for the summer, but still itching for a little getaway, how about a vacation in your own backyard? Industry watchers say Hawaii's hotel market is soft for the first time in 4 years. And that could mean deals for your wallet.
"The industry is headed into a soft period. It's not unexpected. It started in mid 2006- which was a record year for the industry, but nevertheless in the second half of 2006 there were signs of slowdown. We began seeing slower increases in average room rates, average decline in numbers of rooms sold," reflects Hospitality Advisors' Joe Toy. His company keeps track of statewide figures.
Toy says a decline in visitors from the mainland, Japan and Canada is to blame for the slump. "It's worrisome, but I think hoteliers have been planning for this cycle since last year, developing various marketing campaigns that they roll out when signs of softening comes around like adding free nights for a minimum five night stay, free meals, activities, so forth. A lot of these value-added programs have been implemented in prior downturns like after 9/11 and during the recession in early 90's. It proved successful in instituting demand," explains Toy.
Local customers become even more important in sustaining the hotel's profits, Toy explains, and even develop programs targeted at locals. But that's not all! If you can break away for a quick mainland adventure, Toy extrapolates, "You'll also see deals on the mainland. Hawaii residents will find good deals in Las Vegas. There's also softening in Orlando and California."
Toy notes, "What typically happens in soft times is that we see more regional travel, like people going to Orlando from the southeast. There's going to be a high volume of drive traffic. Several recent studies show gas prices have little impact on driving. It impacts the overall household income and long-haul travel for air tickets. But, people love to drive their cars despite price of gas."
In related news, Toy's company finds Hawaii continues to do well as compared to other US leisure destinations. According to his partners, Smith Travel Research, the top five hotel markets in the US in the first quarter of 2007 were Phoenix, Miami, Hawaii, New York, and Los Angeles.
"What's interesting is, year after year we've been consistent in ranking among the top resorts in the world. In the Conde Nast and similar polls, of the Top 10 hotel destinations, there's always five to six Hawaii properties in there. Hualalai ranks very high, the Halekulani, the Four Seasons, Fairmont Kealani- all very strong competitors in the global destination market," Toy says.
Again, this is good if you want to enjoy some luxury travel in your own state. Toy predicts the softening of the market means you can find deals even at the five diamond hotels this summer.
Toy doesn't see a change any time soon for Hawaii's dominant position in the market, "We have a special position in the travel market. We're a US destination, but an exotic location. We have all the conveniences of a US destination but the flavor and appeal of an exotic location. We're very cosmopolitan, and we obviously have some of the best beaches in the world."
These deals will last for a while. Toy says the economic forecast shows no sign of recovery until 2009.
Joe's hotel tips:
-Never accept the rack rate
-In Hawaii, ask for the published kama'aina rate or for the weekday rate
-On the mainland, calculate a similar figure by taking 35% off the rack rate or by asking for the weekend rate
-Don't book when the hotel is expecting large conventions or tour groups
-Mondays are good because most large groups haven't arrived yet
Hospitality Advisors, LLC is Hawaii's leading hospitality consulting firm specializing in strategic, financial, market and economic analysis for Hawaii's visitor industry. www.hospitalityadvisors.com
CELEBRITY SUITCASE
NBC's Deal or No Deal models
Leyla Milani (Case #13) and Aubrie Lemon (Case #23)
Leyla:
1) Juicy Couture sweat set in velour or terry, to wear on the plane
2) Uggs boots, or slippers with socks, to not hassle with the TSA check in
3) Eye patch
4) Bose noise canceling headphones, to sleep on the plane
5) Warm jacket
"On the plane, I immediately put the blanket on my face and try to sleep. At the hotel, I turn off the air in the room because it's usually too cold. My favorite city is Miami because it's warm. I've been modeling for three years and it's taken me around the world. That's great because I love to travel. Work has taken me to Greece, Brazil, Mexico, and across most of the US."
Aubrie:
1) Sweats and sneakers for the plane
2) Fleece jacket, which doubles as a pillow or blanket on plane
3) Sudoku puzzles
"If I forget one of those things, I feel something's missing! We travel a lot for work. To promote the show, we're away two weekends a month somewhere in North America. I've developed travel rituals. The first thing I do at the hotel is pull off the comforter, since I think hotel comforters are germy. Then I turn off the lights and turn on the tv for white noise. Overall I've been modeling for four years and my favorite city is Waikiki, or anywhere it's warm."
The Deal or No Deal models are on set 15 ½ hours a day, every two weeks. They'll tape six to eight episodes at a time, and they say it takes discipline to maintain one's figure while working because the set is full of junk food from the catering company!
FUN FINDS
"Compact Solar Generator in Briefcase Design"
http://www.vellemanusa.com/us/enu/product/view/?id=521432
I've not tried this, but I love the concept. This solar generator looks like a briefcase but it actually is two photovoltaic panels that can recharge all your accessories on the go!
