HAWAII | LODGING DEALS

Hawaii hotels offering new incentives on Maui & other islands

A drop in the number of guests spurs ‘added-value’ specials.

By Jaymes Song, Associated Press
11:04 AM PDT, April 17, 2007

Hawaii hotels are offering deals and incentives — complimentary surfboard rentals as well as free room upgrades — months before they normally do because of a sharp drop in hotel occupancy this year.

State tourism liaison Marsha Wienert said such specials are traditionally offered during the spring, or the so-called "shoulder" period, but hotels started advertising them as early as mid-January this year. She said Hawaii tourists could expect "added value," such as a fifth night free, a meal or an activity.

The cooling comes after 2-1/2 robust years for the hotel industry, which has benefited from Americans leery of traveling abroad.

"Everybody realized over the past couple years that this is a phenomenon and there was going to be a right-sizing occurring within the marketplace. It was a matter of when," Wienert said.

Hotel occupancy in Hawaii fell to 77% for the first two months of the year compared with 84% for the same period in 2006, according to the latest report by Hospitality Advisors. But the statewide average rate surged 8% to $201, which is among the highest in the nation.

"On a 10-year basis, we're having a perfectly fine first quarter. We're just a little disappointed because the previous two years were so hot," said Barry Wallace, executive vice president of hospitality at Outrigger Enterprises, which manages 30 properties statewide.

Outrigger, like other chains, often sets rates for its 9,000 rooms in Hawaii a year in advance for wholesalers. So adjusting the rates is not as simple as a highway motel changing the sign and turning on the "vacancy" light.

Wallace said the company is offering selective discounts to certain segments, such as Hawaii residents, in hopes of a short-term boost.

Hyatt, which operates three resorts in Hawaii, is also trying to stimulate some short-term activity by offering spring packages that include free room upgrades and breakfasts or tickets to a luau show.

"We deploy them when we see little pockets where we need some help," said Frank Lavey, vice president and managing director of the Hyatt Regency Maui Resort & Spa.

Hilton Hawaii is running several programs to target the "soft periods," including an offer of 10,000 Hilton HHonors bonus points and discounts for members of AAA and AARP, said Jon Conching, regional vice president of sales and marketing for Hilton Hawaii.

The company is also offering a spring deal for Hawaii residents that includes a free surfboard rental or discounted surf lesson.

Many hotel operators say bookings are strong for the summer season and they will not need to offer many perks.

While the Japanese market continues to slump, a substantial decline this year was tourists from the East Coast. Fewer airlines are flying directly from the East Coast to Hawaii and more people are again considering foreign destinations, such as Europe or the Caribbean.

"Hawaii competes with the world now," Wienert said. "As people get more comfortable with flying, especially international, I think you will see travel patterns changing a little bit.

"However, we hope we're still perceived as foreign in nature, but domestic in all that we are and do," she said.

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