JAL, ANA to drop fuel fees on tickets by 34%
POSTED: Tuesday, November 18, 2008
The state's long-struggling Japan visitor market might get a boon when the fuel surcharge to Hawaii decreases by 34 percent at the start of the year; however, it's still unclear to what extent the islands will capitalize on the price reductions.
Japan Airlines and All Nippon Airways announced yesterday that they will decrease the fuel surcharge for tickets issued between Jan. 1 and March 31 due to a 29 percent reduction in fuel prices during the period from August to October. As a result of the decrease, the fuel surcharge on tickets from Japan to Hawaii will drop from about to roughly $137 per passenger from $208 per passenger.
“;Obviously, the fuel surcharges have been an impediment to travel,”; said Dave Erdman, president and chief executive of PacRim Marketing Group Inc. “;As we see reductions, it offers us an opportunity to gain back customers that might have had resistance to the price.”;
However, despite the reductions, Hawaii still will have to battle fierce competition for Japanese visitors from destinations that are geographically closer and may be perceived to be places that will give them greater yield for their yen.
“;Hawaii remains the No. 1 destination, but all of these destinations will benefit from a more affordable fuel surcharge,”; said Akio Hoshino, senior vice president for Jalpak International Hawaii.
In addition, Hawaii will have to battle consumer concerns about Japan's economy to see any increase in travel, he said.
In September, Japanese visitor arrivals to Hawaii declined 19.8 percent to 92,965. Fewer flights, rising fuel surcharges and other costs, as well as generational and economic changes in the market, have been blamed for the drop in arrivals.
As such, even with the reduced fuel surcharge and favorable exchange rate, New Year's travel to Hawaii from Japan is expected to drop as much as 5 percent to 10 percent during the Japanese National Holidays, which take place from Dec. 29 to Jan. 3, Hoshino said.
“;We might have last-minute New Year's bookings, but we can't expect it,”; he said.
If Hawaii is to see a mini travel boom from the fuel surcharge reduction, more likely it would occur outside of the New Year's period, he said.
“;But even with the fuel surcharge and the favorable exchange rate, demand is still not strong,”; Hoshino said.
It's still not known what price point fuel surcharges will hit when bookings for the critical vacation period of Golden Week, which runs from April 29 to May 6, get into full swing, he said.
The fuel surcharge on tickets issued from April to June will depend on fuel prices from November to January, according to JAL and ANA.
Moving forward, Hawaii will have to emphasize value, Erdman said.
“;The value that Hawaii has now is the best ever,”; he said. “;We have new infrastructure and new properties in Waikiki and we have a yen exchange rate that is under 100.”;
Fuel Surcharges dropping for two Japanese Airlines
Japan Airlines announced yesterday that it will decrease the fuel surcharge for tickets issued between Jan.1 and March 31 due to a 29 percent reduction in fuel prices during the period from August to October. As a result of the decrease, the price to travel from Japan to Hawaii and other international destinations will go down. All Nippon Airways is also implementing the same decreases.
| Destinations | Fuel Surcharge (Oct. 1 to Dec. 31) | Fuel Surcharge (Jan.1 to March 31)* |
| (Per person per sector flown) | For sales outside Japan | For sales outside Japan |
| Japan-Korea | US$38.00 | US$24.00 |
| Japan-China, Hong Kong, Taiwan | US$99.00 | US$57.00 |
| Japan- Guam, Philippines, Vietnam | US$123.00 | US$71.00 |
| Japan- Thailand, Malaysia, Singapore, | US$189.00 | US$118.00 |
| Japan- Hawaii, India, Indonesia | US$208.00 | US$137.00 |
| Japan- Canada, Europe, Mexico, Middle East, Oceania, USA (exc Hawaii) | US$312.00 | US$208.00 |
| Japan-Brazil | US$359.00 | US$246.00 |
*These are estimated fuel surcharges because the cost in dollars fluctuates with the exchange rate.
Source: JAL, ANA
