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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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Montréal-Trudeau Airport awarded prestigious 4-Star rating

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Montréal-Trudeau Airport (YUL) has for the first time been awarded a prestigious 4-Star rating under the Skytrax World Airport Star Rating program, joining the ranks of other major world airports. The results obtained from this ranking, considered a benchmark in the global airport industry, stem from an audit conducted last March.

This fourth star recognizes the major investments made in recent years to modernize the airport’s infrastructure and achieve the highest industry standards, as well as employee efforts to enhance the passenger experience day after day.

“In 2018, Aéroports de Montréal challenged itself to obtain a 4-Star Skytrax rating for the YUL site,” said Philippe Rainville, President and CEO of Aéroports de Montréal. “After pushing our limits and raising the bar to improve customer experience, we learned today that the challenge has been successfully met. ADM is extremely proud of the dedication and excellent work done by all employees at the airport and in the airport community.”

In the past year, many initiatives have been put in place to enhance the passenger experience and the fluidity of processes, as well as to optimize terminal maintenance. YUL now has a new team of ambassadors serving passengers, technology-based control and monitoring processes to ensure the cleanliness of facilities, self-service baggage check-in kiosks, and a fifth baggage carousel in the international zone.

The “World Airport Star Rating,” created in 2000, is recognized in the industry as a global benchmark for airport standards. Ratings range from 1 Star to the most prestigious 5-Star rating. Skytrax specializes in ranking international airline organizations and advises airlines and airports around the world on ways to improve the quality of service delivery and facility management.

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US airlines wrongfully reject over 25% of their passengers’ compensation claims

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Consumer rights advocacy group released the results of a new study showing that United States airlines wrongfully reject more than 25% of compensation claims, indicating that more than one in five travelers are being denied up to $700 they are owed by Delta Air Lines, United Airlines, and American Airlines following flight disruptions.

Each year, more and more travelers flying out of the U.S. are eligible to claim compensation under European law EC 261 which covers travelers on European flights. AirHelp found more than 25% of valid claims filed against U.S. airlines for disrupted flights in 2016, 2017 and 2018 were turned away on wrongful grounds by airlines trying to avoid their obligation to travelers.

The travel experience is continuously getting worse due to overtourism. In the U.S., 407,000 travelers are eligible to claim compensation under EC 261 following flight delays and cancellations experienced last year, up from 370,000 the previous year. During the first three months of 2019, more than 75,000 passengers experienced disruptions due to the fault of the airlines that have made them eligible for compensation.

This trend is a small part of the larger issue of airlines mistreating passengers. A survey of travelers found 75% of U.S. travelers feel uninformed about their air passenger rights, and less than 25% of travelers who were on a disrupted flight actually file a claim, despite airlines being required by law to inform passengers of their rights.

How the U.S. Airlines Stack Up

Of the U.S. airlines, Delta Air Lines wrongfully rejects the most claims at a rate of one in three. United Airlines wrongfully rejects nearly one in four claims, and American Airlines rejects one in every five. According to an annual ranking of global airlines and airports, U.S. airlines’ unsurprisingly perform poorly, with each major carrier earning less than seven out of 10 for quality of service.

The most popular U.S. airlines ranked on wrongfully rejected claims rate

United States ranking Global ranking for wrongfully rejected claims rate

Airline Wrongfully rejected claim rate

1 32 Delta Air Lines 32%
2 42 United Airlines 23%
3 44 American Airlines 22%

Data from January 1, 2016 to December 31, 2018

“The bleak picture in the U.S. is just the tip of the iceberg. The volume of legitimate passenger claims being wrongfully rejected by airlines is appalling. Flight delays and cancellations are increasingly heaping chaos on passengers, and travelers are forced to fight airlines for compensation they’re rightfully owed,” says Henrik Zillmer, CEO of AirHelp. “It’s all very well for airlines to say they will compensate passengers who make their claim directly. The reality is that thousands of passengers are continuing to face an impossible struggle to claim the money they’re entitled to. If they are embroiled in a legal battle with an airline, passengers may face costs to hire a lawyer to push through their claim, which can make fighting for compensation virtually impossible.”

U.S. Passenger Rights

U.S. passengers are protected under EC 261 for flights to the EU on an EU airline, and any flight departing from the EU. Cancelled flights, delays of more than three hours, and incidents of denied boarding are covered under EC 261, as long as the disruption was not caused by extraordinary circumstances such as weather, sabotage or political unrest. Eligible passengers may be entitled to financial compensation of up to $700 per person, and can file claims up to three years after the incident occurs.

Travelers have fewer protections on domestic U.S. flights, but can claim up to $1,350 in compensation for denied boarding due to overbooking, depending on the value of the ticket fare and ultimate delay in arrival to their final destination

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Which 3 Italian cities rank as top unique experiences?

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Italy is the homeland of the cities most appreciated by travelers according to reviews of users of an online platform. Coming in among the top 5 are Rome, Florence, and Milan. Amsterdam and Barcelona round out the top 5.

The Italian peninsula thus rose to the podium, winning 3 of the 5 positions in the ranking, according to the research conducted by Musement which analyzed 133 destinations distributed all over the world, based on beautiful landscapes, excellent culinary offers, and outstanding cultural attractions.

Analyzing the results of the research, the growth of interest in the national territory comes at the expense of medium- and long-range destinations emerges among the key factors, with long-haul destinations attracting less interest.

A surprising aspect is that once again Italy and the many experiences that the multiplatform provides users to get closer to the cultural traditions and landscape variety of Italy is emphasized.

Rome continues to be the most popular destination with a typically Mediterranean climate, cultural attractions, and unique tourist beauties such as the Colosseum, the Vatican Museums, and the Sistine Chapel. The city of Milan remains on the fourth step of the podium with international events such as My Photos Fair and the visit to the Cenacle in the rankings.

The second place is also Italian – Florence between the Boboli Gardens, the Uffizi, and gastronomic tours.

Among the top 5 destinations, some European cities also prevail, above all Barcelona, which wins third place with Park Guell and the Barcelona Aquarium.

The fifth position is Dutch. In fact, Amsterdam closes the standings thanks to the Van Gogh Museum, the cruise on the canals, and the Heineken Experience.

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Sea cruise 2019-2020: What is the Italian trend?

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Sea cruising in Italy is starting to grow again, aligning itself with the international trend. This is the message of the president of Cemar Agency Network of Genoa, who presented – during the Seatrade Cruise Global in Miami – the 2019 and 2020 forecasts for the cruise sector in the Italian ports.

An increase of around 7.13% is expected in terms of passengers  (for a total of 11,911,000 of cruise passengers) and a further +7.88% is expected on 2020 with the expectation expected to total up to 13 million passengers.

“I believe that such a positive result must be mainly attributed to the new units that are becoming part of all the most important fleets of cruise ships,” reflects the president, Senesi. In detail, this year, the ships will increase to 4,860 units, while 149 ships will be in transit in Italian sea ports representing 46 shipping companies.

Among the 70 ports involved in cruise traffic, the primacy of Civitavecchia (Italy) will be confirmed in 2019, with 2,567,000 passengers (+5.13% compared to 2018). Venice will follow with 1,544,000 passengers (-1.06%) and Genoa in third place with an excellent result of 1,343,000 passengers (+32.79%).

It will then be the turn of Naples with 1,187,000 (+20.35%), followed by Livorno with 812,000 (+3.29%). The ranking of the top 10 Italian ports closes with Savona, Bari, La Spezia, Palermo, and Messina.

Among the companies that this year will handle the largest number of tourists in Italy’s sea ports, the podium is held by MSC Cruises (3,622,000 passengers), Costa Crociere (2,725,000 pax) and Norwegian Cruise Line (863,000 pax). Looking instead at the Cruise Groups, the first place goes to Carnival Corporation with 4,117,000 passengers, followed by MSC, Royal Caribbean with all its brands (including Silversea) with 2,115,000 pax, and NCL Holding with over 1 million cruise passengers.

The busiest months will be October (1,744,000 passengers and 781 stopovers), June (1,505,000 pax and 614 stopovers), September (1,497,000 pax and 627 stops), and May (1,488,000 pax and 687 stopovers), while the least trafficked will obviously be the winter ones, with February and January in the lead.

“The positive forecasts for the two-year period 2019-2020 must not lead us to lower our guard. Italy is in fact the first cruise destination in the Mediterranean, and thanks to the upcoming new ships being delivered during this two-year period, increasingly green ships, there will be further space for growth. The incognita remain on Venice which to date has not been resolved and which creates strong doubts about future planning for the entire Adriatic,” concluded Senesi.

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