Resistance to Higher Hawaii Hotel Rates is Good for Luxury Vacation Rentals
April 1, 2007. “Hawaii's visitor industry is struggling to overcome falling demand amid rising vacation costs, an imbalance which has influenced spending and hotel choices for tourists,� according to the Honolulu Star Bulletin. The article quotes Smith Travel Research, which reports that hotel occupancy is down 10 to 12 percent in Hawaii, while room rates are up 8 to 10 percent.
We at VRO have long cautioned about raising rates to a level that most families are not comfortable with. Hotels in large cities that depend on business and convention travelers, such as New York and Washington D. C., have been able to jack up rates dramatically over the last two years. However, this does not work for family vacation destinations.
In some family vacation destinations, travelers have responded to the decline in availability of budget accommodations by choosing not to visit, to stay with friends or family when they get here, or to curb spending habits.
Another option is to stay in luxury vacation rentals, especially ones that guarantee a certain standard of quality, such as the quality standards of those listed on VacationRental.org. For the vacation rental owner in higher priced destinations such as Hawaii, the resistance to high hotel room rates offers a great business opportunity—the opportunity to offer more value for less cost.
For vacationers, the luxury vacation rental or villa can offer much more space for a family and the ability to save significantly on food costs by preparing meals at home rather than eating out at expensive restaurants.
