A Hawaii vacation has never been inexpensive – even for those who call the islands home. But, lately? Hawaii hotel rates are SOARING. You’d know this if you looked recently. For those of you who haven’t, though, here’s how bad things have gotten.
According to the Honolulu Star-Advertiser, Hawaii hotels achieved the highest average nightly rates in the nation in March 2022. Somehow, we beat out other insanely expensive markets like New York, Massachusetts, and California, among others. These rates are, no doubt, in response to record-high domestic travel demand, a way for hotel owners to recoup pandemic losses, rising operating costs, and are in response to rebounding occupancy. In fact, the statewide occupancy figure for March came in at 75.2% – just under March 2019’s 78.8%.
Hawaii Hotel Rates are SOARING
So how much higher are hotel rates today? Well, back in March 2019, the average hotel room rate in Hawaii was $285 per night. In March 2021, the average rate dipped slightly to $284. Last month? The average rate sat at a staggering $378! Yowza! That’s a nearly 33% increase over pre-pandemic pricing! That rate pushed Hawaii to number 1 in the nation for revenue per available room, which came in at $284. In March 2019, our RevPar was at $224. Miami came in second in the nation for RevPar last month at $241.
Now, it’s important to note that the average rate doesn’t include annoyances like resort and parking fees, nor does it include tax. All of these items can significantly boost rates far beyond that average. Moreover, this average is held down by the plethora of low-end hotels in places like Waikiki. The hotels most of us actually want to stay at costs quite a deal more. Plus, rates tend to fluctuate wildly based on which island or even which part of an island you want to stay on.
For example, let’s look at Maui. In early May 2022, prices have reached absolutely ludacrious levels. The Courtyard Kahului Airport is going for an eye-watering $480/night. The Sheraton Maui? $825/night. Heck, the Westin Maui is at an eye-watering $901/night. I liked that hotel and I wouldn’t pay anywhere near that to stay there. Nor would I pay the over $1,400/night Grand Wailea is asking for a standard no-view room.
Here on Oahu, prices for those same dates are quite different. You can get the Courtyard Waikiki for $218/night, the Laylow for $290/night, or even the Ritz-Carlton for $650/night. Those rates aren’t too bad, in my opinion. They’re certianly not as crazy as what we’re seeing on Maui.
How to Counteract Crazy Rates
The best way to avoid paying these insane rates is to redeem points for these stays. Marriott is kind of a question mark since they’re actively trying to ruin their program. But, if you’re flexible with your dates, you should be able to find reasonable redemption rates with most of the larger programs. That said, you’ll likely need to do advance planning for more popular properties and should try to book the minute the booking window opens.
If you don’t have a huge warchest of points, another way to counteract these insane rates is to plan ahead. As soon as your booking window opens, book a standard, non-prepaid rate. That way, if the rate drops, you can always cancel and rebook. If the rate doesn’t drop, at least you locked in the lowest rate you could. Plus, you can use this tactic to book a reasonable property as a backup in case a more desireable property drops its price later. Then you can cancel and book at the more desireable hotel.
For those looking to pay cash, it’s always worth looking outside of the big namebrand hotels too. You might get more value out of your stay that way – especially if you book via a portal like Amex Fine Hotels & Resorts.
It also pay to travel during shoulder seasons if you can. Think September after Labor Day, October, February. Avoid major holidays too. And if prices still seem ridiculous, do some searching and see if there’s an event happening. Those can have BIG impacts on pricing too.