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Hawaii hotels: Flat average daily rate, lower occupancy so far in 2019

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For the first three months of 2019, Hawaii hotels statewide reported flat average daily rate (ADR) and lower occupancy, which resulted in lower revenue per available room (RevPAR) compared to the first quarter of 2018.

According to the Hawaii Hotel Performance Report published by the Hawaii Tourism Authority (HTA), statewide RevPAR declined to $236 (-3.3%), with ADR of $292 and occupancy of 80.8 percent (-2.7 percentage points) in the first quarter of 2019.

HTA’s Tourism Research Division issued the report’s findings utilizing data compiled by STR, Inc., which conducts the largest and most comprehensive survey of hotel properties in the Hawaiian Islands.

For the first quarter, Hawaii hotel room revenues fell by 4.7 percent to $1.13 billion compared to the $1.18 billion earned in the first quarter of 2018. There were more than 74,300 fewer available room nights (-1.5%) in the first quarter and approximately 190,500 fewer occupied room nights (-4.7%) compared to a year ago. Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during the first quarter.

All classes of Hawaii hotel properties statewide reported RevPAR declines in the first quarter of 2019 except Upper Midscale Class properties ($134, +0.6%). Luxury Class properties reported RevPAR of $452 (-5.4%) with ADR of $594 (-1.2%) and occupancy of 76.1 percent (-3.3 percentage points). At the other end of the price scale, Midscale & Economy Class hotels reported RevPAR of $155 (-5.0%) with ADR of $187 (-0.5%) and occupancy of 83.1 percent (-3.9 percentage points).

Comparison to Top U.S. Markets

In comparison to top U.S. markets, the Hawaiian Islands earned the highest RevPAR at $236 in the first quarter, followed by the San Francisco/San Mateo market at $210 (+15.9%) and the Miami/Hialeah market at $208 (-3.5%). Hawaii also led the U.S. markets in ADR at $292 followed by San Francisco/San Mateo and Miami/Hialeah. The Hawaiian Islands ranked fifth for occupancy at 80.8 percent, with Miami/Hialeah topping the list at 83.0 percent (-2.1 percentage points).

Hotel Results for Hawaii’s Four Counties

Hotel properties in Hawaii’s four island counties all reported RevPAR decreases in the first quarter of 2019. Maui County hotels led the state overall in RevPAR at $337 (-2.7%), with ADR at $428 (-0.9%) and occupancy at 78.6 percent (-1.5 percentage points).

Kauai hotels earned RevPAR of $228 (-10.2%), with flat ADR at $305 (+0.2%) and lower occupancy of 74.8 percent (-8.7 percentage points).

Hotels on the island of Hawaii reported a decline in RevPAR to $225 (-9.7%), due to a combination of decreases in both ADR ($285, -2.0%) and occupancy (79.1%, -6.7 percentage points).

Oahu hotels earned slightly lower RevPAR at $196 (-0.9%), with ADR at $236 (+0.8%) and occupancy of 83.0 percent (-1.4 percentage points).

Comparison to International Markets

When compared to international “sun and sea” destinations, Hawaii’s counties were in the middle of the pack for RevPAR in the first quarter of 2019. Hotels in the Maldives ranked highest in RevPAR at $575 (+4.5%) followed by Aruba at $351 (+11.2%). Maui County ranked third, with Kauai, the island of Hawaii, and Oahu ranking sixth, seventh and eighth, respectively.

The Maldives also led in ADR at $737 (+5.2%) in the first quarter, followed by French Polynesia at $497 (-1.1%). Maui County ranked fifth, followed by Kauai and the island of Hawaii. Oahu ranked ninth .

Oahu trailed Phuket (84.5%, -6.3 percentage points) in occupancy for sun and sea destinations in the first quarter. The island of Hawaii, Maui County and Kauai ranked fourth, fifth and ninth, respectively.

March 2019 Hotel Performance

In March 2019, RevPAR for Hawaii hotels statewide declined to $227 (-4.3%), with ADR of $285 (-1.1%) and occupancy of 79.6 percent (-2.7 percentage points).

In March, Hawaii hotel room revenues fell by 5.9 percent to $373.3 million. There were more than 27,200 fewer available room nights (-1.6%) in March and approximately 66,850 fewer occupied room nights (-4.9%) compared to a year ago. Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during March. However, the number of rooms out of service may be under-reported.

All classes of Hawaii hotel properties statewide reported RevPAR declines in March. Luxury Class properties reported RevPAR of $443 (-7.2%) with ADR of $583 (-3.1%) and occupancy of 75.9 percent (-3.4 percentage points). Midscale & Economy Class hotels reported RevPAR of $150 (-2.9%) with ADR of $182 (+0.8%) and occupancy of 82.0 percent (-3.1 percentage points).

Hotel properties in Hawaii’s four island counties all reported lower RevPAR for March. Maui County hotels reported the highest RevPAR in March at $336 (-1.4%) with ADR of $421 (-1.6%) and flat occupancy (79.8%, +0.2 percentage points).

Oahu hotels reported lower occupancy (80.4%, -2.3 percentage points) and flat ADR ($230, -0.2%) for March.

Hotels on the island of Hawaii continued to face challenges in March, with RevPAR dropping 11.2 percent to $216, ADR to $272 (-4.9%) and occupancy to 79.2 percent (-5.7 percentage points).

RevPAR for Kauai hotels fell to $213 (-14.6%) in March, with declines in both ADR to $286 (-4.5%) and occupancy to 74.4 percent (-8.8 percentage points).

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US citizen international departures up 6% in 2018

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U.S. air travel to overseas markets totaled 41.8 million, up nine percent for the year. Regional results were:

  • Europe, 17.7 million travelers, up 12 percent
  • Caribbean, 8.3 million travelers, up five percent
  • Asia, 6.3 million travelers, up eight percent
  • Central America, 3.2 million travelers, up seven percent
  • Middle East, 2.4 million travelers, up six percent
  • South America, 2.1 million travelers, up nine percent
  • Oceania, 861,000 travelers, up 11 percent
  • Africa, 432,000 travelers, up seven percent

U.S. travel to North American markets totaled 51.3 million, up four percent compared to 2017.

  • To Mexico, U.S. travelers totaled a record 36.9 million, up six percent
  • ‘Tourist’ (longer haul travel) 19.1 million, up four percent.
  • U.S. air travel to Mexico (10.1 million), part of ‘Tourist’, was up three percent
  • Border (1+ nights travel) 17.8 million, increased eight percent.
  • To Canada, 14.3 million U.S. travelers, ‘flat’ year-over-year. Air travel (4.6 million) was down four percent

Annual 2018 Market Shares

U.S. air travel to overseas locations accounted for 45 percent of total U.S. outbound travel, up one percentage point from 2017. Regional composition:

    • Europe, a 19 percent share (up one percentage point from 2017);
    • Caribbean, a nine percent share; (down one percentage point from 2017)
    • Asia, a seven percent share;
    • Central America, a four percent share;
    • Middle East, a three percent share;
    • South America, a two percent share);
    • Oceania, a one percent share, and
    • Africa, almost a one percent share

North American markets received 55 percent of all U.S. international outbound travel.

    • U.S. travel to Mexico a 40 percent share;
    • To Canada, a 15 percent share (down one percentage point from 2017).

For detailed information and data tables please click here.

Canada and Mexico numbers are preliminary. The chart will reflect final changes.

In 2011, NTTO (then OTTI) began to report U.S. outbound travel monthly by all modes, expanding beyond air-only traffic. Total travel, inclusive of all modes, to Canada and Mexico is reported in addition to the air-only subtotals. The timing of this report is dependent data from the U.S. Department of Homeland Security, Stats Canada and Banco de Mexico (INEGI), respectively.

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Nonstop between Washington Dulles and Acrra, Ghana grows on SAA

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Starting today, South African Airways (SAA) has increased its frequency on nonstop flights between Washington, D.C.-Dulles International Airport and Accra’s Kotoka International Airport to 5 days weekly.

SAA offers the only nonstop flight between Washington D.C. and Ghana and offers travelers convenient connections to and from over 100 cities across the U.S. and Canada through its Star Alliance partner, United Airlines via Washington, D.C.- Dulles.

South African Airways’ flights to Accra now operate 5 days a week with continuing service to Johannesburg, South Africa, operating on Monday, Tuesday, Wednesday, Thursday, and Saturday. SAA’s increase of flights on the route will also serve to support the partnership with Africa World Airlines by offering seamless connections between Accra and additional destinations in West Africa including; Lagos and Abuja, Nigeria; Monrovia, Liberia and Freetown, Sierra Leone. In addition, SAA will continue to operate flights between Washington D.C.-Dulles and Dakar, Senegal and onwards to Johannesburg, two days per week.

SAA’s flights between Washington-Dulles and Accra will be operated with both the Airbus A330-300 and the Airbus A330-200 aircraft. The A330-300 features 46 full-flat 180° beds with direct aisle access at every seat in Premium Business Class and 203 seats in Economy Class. The A330- 200 offers 36 full-flat beds in Premium Business Class and 186 seats in Economy Class. Customers traveling in both Premium Business Class and Economy Class will have on-demand audio and visual entertainment options, in-seat power ports, freshly-prepared meals, and complimentary bar service featuring South African wines.

For information, visit flysaa.com.

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American Airlines: New cabin, larger overhead luggage bins

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American Airlines is starting scheduled flights with the first of its 100 new Airbus A321neo aircraft on order. These aircraft come equipped with an all-new cabin interior designed for enhanced passenger comfort and convenience, including larger Airspace XL overhead luggage bins that increase carry-on bag capacity.

American is the launch customer for the Airspace XL bins, which provide approximately 40 percent more overhead storage space for passengers on board the 196-seat aircraft. In addition to equipping its new A321neos with the XL bins, American also plans to retrofit its entire in-service fleet of earlier A321 models – more than 200 aircraft – with the cabin features included on the new A321neos.

Ingo Wuggetzer, Airbus’ Vice President of Cabin Marketing said: “We are very pleased that American Airlines’ first A321neos with the Airspace XL bins are now entering service. We constantly work with airline customers to improve our aircraft cabins, and American in particular played an instrumental role with us in developing our biggest and best overhead bins to date.”

The Airspace XL bins accommodate larger luggage – up 24” x 16” x 10” – allowing standard roll-on bags to be loaded on their sides instead of being inserted flat. This creates room for up to four bags in each bin instead of the current three. The larger bins will significantly reduce the number of passenger bags checked at the gate, and sent to the cargo hold.

American‘s selected cabin layout allows the airline greater flexibility in seating arrangements and use of cabin space. The two class cabin will gain an additional row of first-class seats, bringing the total to 20. Outfitting the A321neo with a free wireless inflight-entertainment (IFE) system allows passengers to select a wide-range of options from their own devices. LED mood lighting will enhance the cabin environment.

Powered by CFM LEAP-1A engines and ETOPS certified for lengthy over water flights, the A321neo will allow American to carry larger loads on its longer, more densely travelled routes such as Los Angeles and Phoenix to Orlando, or West Coast hubs to Hawaii.

 

The A321neo is the largest member of the A320 Family, seating up to 240 passengers, depending on cabin configuration. Incorporating the latest engines, aerodynamic advances, and cabin innovations, the A321neo offers a reduction in fuel consumption of at least 15 percent per seat from day

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Number of Hawaii visitors up but spending down

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Visitors to the Hawaiian Islands spent a total of $1.39 billion in February 2019, a decrease of 2.7 percent compared to February 20181, according to preliminary statistics released today by the Hawaii Tourism Authority. This is another dip following the 3.8 decrease in January.

In February, visitor spending increased from the U.S. West (+4.7% to $503.3 million) but declined from U.S. East (-6.7% to $370.9 million), Japan (-0.8% to $170.1 million), Canada (-0.7% to $150.7 million) and All Other International Markets (-15.3% to $188.7 million) compared to a year ago.

On a statewide level, average daily visitor spending was down slightly (-0.9% to $200 per person) in February year-over-year. Visitors from Japan (+3.3%), U.S. West (+1.2%) and All Other International Markets (+0.7%) spent more per day while visitors from U.S. East (-4.1%) and Canada (-1.0%) spent less.

A total of 782,584 visitors (+0.5%) came to Hawaii in February 2019, up slightly from the same month last year. Arrivals by air service (+0.3% to 766,293) were comparable to last February while arrivals by cruise ships (+12.1% to 16,291) increased. However, total visitor days2 declined (-1.9%) versus February 2018 due to a shorter average length of stay by visitors from most markets.

The average daily census3 of total visitors in the Hawaiian Islands on any given day in February was 248,244, down 1.9 percent compared to February last year. Arrivals by air service realized growth from U.S. West (+6.5%), Canada (+2.5%) and Japan (+1.1%) which offset decreases from U.S. East (-0.9%) and All Other International Markets (-17.2%).

Visitor spending on Oahu decreased (-1.6% to $613.0 million) while visitor arrivals (456,820) were flat compared to last February. Maui recorded increases in both visitor spending (+1.2% to $413.0 million) and visitor arrivals (+1.5% to 220,801). The island of Hawaii saw declines in visitor spending (-17.5% to $192.3 million) and visitor arrivals (-14.8% to 137,502). Visitor spending increased on Kauai (+4.7% to $153.5 million) while visitor arrivals were similar (+0.2% to 104,167) to February 2018.

A total of 1,010,961 trans-Pacific air seats serviced the Hawaiian Islands in February, up slightly (+0.5%) from a year ago. Growth in air seats from Canada (+10.9%), Japan (+6.3%), Oceania (+1.8%), U.S. West (+0.5%) and U.S. East (+0.5%) offset declines from Other Asia Markets (-25.1%).

Year-to-Date 2019

Through the first two months of 2019, visitor spending declined (-2.4% to $3.01 billion) compared to the same period last year. Visitor arrivals increased (+1.8% to 1,603,205) but a shorter length of stay (-1.8% to 9.43 days) resulted in no growth in visitor days. Average daily spending (-2.4% to $199 per person) was lower compared to a year ago.

Visitor spending decreased from U.S. West (-0.8% to $1.06 billion), U.S. East (-1.8% to $832.5 million), Japan (-3.8% to $349.6 million), Canada (-0.4% to $318.3 million) and All Other International markets (-7.5% to $443.2 million).

Visitor arrivals increased from U.S. West (+5.5% to 631,064), U.S. East (+0.7% to 356,943), Japan (+3.3% to 251,488) and Canada (+0.7% to 133,915), but declined from All Other International Markets (-7.9% to 201,981).

Other Highlights:

U.S. West: Visitor arrivals from the Pacific region rose 7.6 percent in February compared to the previous year, with more visitors from Alaska (+13.7%), California (+8.4%), Washington (+6.7%) and Oregon (+2.9%). Arrivals from the Mountain region were up 3.2 percent in February with growth from Arizona (+9.5%) and Nevada (+8.5%), offsetting declines from Utah (-5.7%) and Colorado (-1.3%). Through the first two months, arrivals from the Pacific (+7.4%) and Mountain (+1.8%) regions increased versus the same period last year.

Through February 2019, average daily visitor spending dropped to $182 per person (-2.4%) compared to the same period last year, largely due to decreases in transportation and food and beverage expenses.

U.S. East: Growth in February visitor arrivals from the East South Central (+1.6%) and East North Central (+0.6%) regions were offset by decreases from the West South Central (-4.1%), South Atlantic (-4.0%), New England (-2.4%) and Mid Atlantic (-0.7%) regions compared to a year ago. For the first two months of 2019, arrivals were up from the East South Central (+7.2%), West North Central (+2.6%) and South Atlantic (+0.7%) regions.

For the first two months of 2019, average daily visitor spending declined to $214 per person (-1.4%), largely due to a decline in transportation expenses.

Japan: In February, more visitors stayed in hotels (+5.2%) while stays in condominiums (-16.1%) and timeshares (-7.6%) decreased compared to a year ago.

For the first two months of 2019, average daily visitor spending declined to $238 per person (-4.4%), primarily due to lower lodging and transportation expenses.

Canada: In February, less visitors stayed in condominiums (-7.3%) and hotels (-1.6%). Stays in rental homes (+23.7%) and timeshares (+4.4%) increased from a year ago.

For the first two months of 2019, average daily visitor spending decreased (–0.7% to $177 per person) compared to the same period last year, due to lower shopping as well as entertainment and recreation expenses.

MCI: A total of 57,043 visitors came to the Hawaiian Islands for meetings, conventions and incentives (MCI) in February, an increase of 10.4 percent from last year. More visitors came to attend conventions (+18.6%) and corporate meetings (+2.2%) but fewer traveled on incentive trips (-1.0%). Contributing to the growth in convention visitors was the 2019 International Stroke Conference, held at the Hawaii Convention Center, which brought nearly 6,000 delegates. Through the first two months, total MCI visitors grew (+10.5% to 116,310) compared to the same period last year.

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