Springing for Hawaii
POSTED: Sunday, February 28, 2010
Three blizzards in two months were all the incentive that Northern Virginia-based Bryan Cordell needed to think about when booking a weeklong Hawaii vacation.
Great offers sealed the deal, Cordell said, adding that he found a $1,000 package on the United Airlines booking site that included airfare and six nights at the Aqua Aloha Surf & Spa, just blocks from Waikiki beach.
“;Hawaii has become very affordable,”; Cordell said, as he surfed the Internet for free—courtesy of his hotel's aggressive value-added amenities program.
Because the Aqua Aloha Surf includes free daily continental breakfast, complete with made-to-order pancakes, and is a short walk from grocery stores, affordable restaurants and a bus stop, Cordell will keep other expenses to a modest $300. Guests also get a free cocktail, as well as free wireless and access to an on-site gym and spa, he said.
“;I don't think Hawaii is all that expensive. It's just that people have to get past that mental block,”; he said. “;I tell all my friends to book now, but most of them are still shoveling snow.”;
Cordell might not have convinced his friends to make their way to Hawaii for spring break, but Hawaii's visitor industry reports that more travelers regard the state as a safe, family-friendly, and yes, nowadays, affordable destination.
HOW POPULAR IS HAWAII?
Hawaii is always a popular spring break destination, and this year is no exception. In fact, based on Travelocity bookings, all Hawaii destinations have increased in popularity this year compared to last:
» Honolulu moved up the list from No. 14 in 2009 to No. 13 in 2010.
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If we discount it, they will come seems to be the new mantra for hoteliers hailing from Oahu's Waikiki to the Big Island's Waikoloa. Virtually every Hawaii hotel property is offering deep spring break discounts that may include free room nights to resort credits to amenities such as free food, parking, gym access, wireless, and in-room newspapers.
What's the reason for all this generosity?
Hawaii's visitor industry knows that even though the recession has ended, fewer will be traveling this spring break than were prior to the downturn.
“;The economy still has not fully recovered. If travelers have to cut out or scale back on one vacation, it's likely to be spring break, not summer or the holidays,”; said Jack Richards, president and chief executive officer of Pleasant Holidays, Hawaii's largest wholesaler.
Hawaii will compete with other leisure destinations such as the Caribbean, Mexico, Tahiti and Fiji, Richards said. Hawaii also must vie for business against large group destinations with blocks of rooms to fill, he said.
“;They are all on sale,”; Richards said. “;Prices on packages to Mexico and the Caribbean are offering discounts up to 60 percent.”;
Domestic destinations could pull business from international spring break hot spots, said Glen MacDonell, director of AAA Travel.
“;Overall, locations that are easy to get to and offer discount pricing or an all-inclusive experience are likely to be the most popular, just as they have been throughout this economic cycle,”; MacDonell said.
Travelers who look beyond the obvious “;college beach towns”; may be able to find deals not normally associated with the spring break season, he said.
TOP 20 SPRING BREAK DESTINATIONS Honolulu and Maui, which are family favorite islands, were among the most popular 2010 spring break destinations for Travelocity customers. An asterisk * denotes most popular with families. 1. Orlando, Fla. * 2. South Florida* 3. Las Vegas 4. Phoenix 5. Cancun, Mexico* 6. New York City 7. Fort Myers, Fla.* 8. Los Angeles 9. Tampa / St. Petersburg, Fla.* 10. Washington, D.C. 11. Denver area 12. San Francisco Bay 13. Honolulu* 14. San Diego 15. San Juan, Puerto Rico* 16. New Orleans 17. Boston 18. Maui* 19. Atlanta 20. Chicago area Source: Travelocity HOLD ON TO YOUR DOLLARS
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“;This is because the all-inclusive resorts in Mexico and the Caribbean will be competing even harder to lure budget-conscious students away from home this year,”; MacDonell said.
Domestic airfare is higher this year, but hotel rates continue to drop for popular spring travel destinations such as Las Vegas, Maui, Hawaii, and Orlando, according to Bing Travel's recently released 2010 Spring Break Forecast.
“;Despite the recession, airlines are continuing to cut capacity, and spring airfares are creeping back up to 2008 levels,”; said Bing Travel fareologist Joel Grus. “;We are seeing a deep decrease in hotel prices across the board, which could reduce overall trip costs and offset higher airfares.”;
Bing reported that hotel rates in popular domestic destinations are down 15 percent over 2009, averaging $173 per night. In destinations such as Las Vegas, rates are down as much as 27 percent, an average of $103 per night, and rates in San Diego are down as much as 24 percent.
“;A decrease in demand and occupancy has led hotels to slash rates to fill empty rooms, and we expect that this will remain the trend for 2010 spring travel and potentially beyond,”; Grus said.
Mindful of deep discounting across the leisure destinations, Pleasant Holidays recently rolled out an unheard of $338 San Francisco/Hawaii package deal that includes airfare and three nights in a hotel.
“;It's cheaper this year,”; Richards said. “;You won't find air that low.”;
West Coast travelers will find impressive discounts in destinations like Las Vegas and Maui, where East Coast travelers may find their best offers in Orlando or Puerto Vallarta, Bing Travel said.
All Hawaii destinations have increased in spring break popularity this year compared to last, said Genevieve Shaw Brown, Travelocity senior editor.
“;Hotel pricing in Hawaii is very attractive and that is really important to consumers right now,”; Shaw Brown said. “;In fact, some of the best deals I've seen for spring are in Hawaii. In a destination like Hawaii, which is so dependent on air travelers, it is especially important that the hotels be priced well to convince travelers to purchase airfare and go.”;
Although average airfare to Honolulu is up 3 percent, it is down slightly on the neighbor islands, she said. Average Hawaii hotel rates are down by 6 to 18 percent depending on the island, Shaw Brown said.
Still, Hawaii's lure might be related to more than price. Tatsuya and Shino Kurebayashi, who were married on Tuesday, had selected Bali for their destination wedding, but changed their plans less than a month ago.
“;The price was about the same,”; Tatsuya Kurebayashi said as he walked the grounds of the Hilton Hawaiian Village with his bride. “;We thought Hawaii was more touristy and would therefore be more enjoyable for our family.”;
Despite fierce competition from other destinations, most travelers are aware of the fact that there is only one Hawaii, said Jerry Gibson, Hilton Hawaii area vice president and managing director of Hilton Hawaiian Village.
“;Our market is intact and booking,”; Gibson said.
Aston began to see spring break pick up at the end of January, said Shari Chang, senior vice president of sales, marketing and revenue management at Aston Hotels & Resorts.
“;When we started to get those waves of storms on the East Coast, our telephone volume doubled,”; Chang said.
Also, Aqua Hotels & Resorts has noticed that pent-up demand has spurred bookings, said Ben Rafter, president and chief executive officer of Aqua Hotels & Resorts.
“;The American consumer is only going to go so long without traveling,”; Rafter said. “;Spring break has provided a good impetus to travel.”;
The Goerl family of Long Island, N.Y., said that its recent Hawaii trip was nine years in the making. The family of four spent an estimated $6,000, including airfare, lodging, rental car, food and activities.
“;It was a great deal,”; Erika Goerl said. “;It cost a lot less than we thought it would. It was even cheaper than our last trip to Cancun, which cost us $10,000.”;
Most Hawaii hoteliers anticipate that spring break occupancy will be strong; however, they say that rates will probably be equal or slightly lower than last year.
“;The rates are not where any Hawaii company would like to see them,”; Chang said.
Outrigger Hotels and Resorts is seeing spring break occupancy up 10 points ahead of last year, but rates are about 10 percent lower, said Barry Wallace, executive vice president of hospitality services for Outrigger Enterprises Group.
“;It's a great time to travel for Hawaii,”; Wallace said.
As occupancy improves, some Hawaii hoteliers are beginning to see their first opportunities to raise rates since the Lehman Brothers crash last fall, Rafter said.
“;What's exciting for us is that because the pickup is coming in nicely, we are getting chances to yield up,”; he said. “;We are looking for ways to generate more revenue, and if that trend carries through summer, we'll see the first sprigs of green coming up after the forest fire.”;