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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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Moscow selected to host annual GSMA Mobile 360 Series event

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Eurasia conference, a regional event held as part of the activities of GSMA (Global System for Mobile Communications Association), will be held in Moscow, October 8-9 2019.

The decision to host the event in Moscow was adopted as a result of an active work of the Russian Convention Bureau which provided the proposal for venues, and organized an inspection visit for representatives of the international association.

The event will be held in Moscow for the second time, following the successful launch in 2018 which gathered over 600 attendees from 21 countries and 52% were Director-level and above.

In 2019, the conference and exhibition will bring together over 600 policymakers, regulatory authorities, international organisations, Mobile Network Operators, mobile technology solution providers and broader ICT ecosystem players from Russia, the CIS region and the international market leaders in 5G technology. The event will be held at the Lotte Hotel Moscow.

Anton Kobyakov, Advisor to the President of the Russian Federation, said: “The sphere of mobile and high technologies plays a key role in stimulating economic growth, attracting foreign investments and increasing global competitiveness through development of science and technology. Adding more industries to the list of events organized by the Russian Convention Bureau will not only facilitate the development of corresponding areas of the real economy sector but also help create the image of the country on the international arena as one of the most meaningful players on the market of the event industry.”

Alexey Kalachev, Director of the Russian Convention Bureau, said: “We use various tools of working with international associations as we work to attract various business events to Russia. We are ready to offer universal and customized solutions that will correspond to the needs and expectations of conference organizers of various scale in different industries.”

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Indian travelers expected to spend $136 billion by 2021

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The Indian traveler has come of age, spending approximately $94 billion in 2018, on around 2 billion domestic and international trips, helping the Indian travel and tourism industry achieve unprecedented scale.

The momentum is expected to continue and the industry will grow at a 13 percent CAGR to $136 billion by 2021, according to a report, ‘How Does India Travel’. The report outlines how India spends on travel, the influence of online channels in their purchase journey and potential growth opportunities for travel businesses till 2021.

Deep diving into the $136 billion spends, the report cites a 12 percent growth in transportation ($50 billion), 13 percent growth in lodging ($21 billion) and consumption, which includes spends on shopping, recreation and food, to grow at 13 percent ($65 billion) over the next three years. Additionally, as more people come online, smartphone penetration improves and use of digital payments goes up, the report estimates that Indian travelers will spend an additional $24 billion on online travel bookings over the next three years, a growth from 25 percent in 2018 to 35 percent in 2021.

Online is a significant source of research

Elucidating the planning journey of Indian travelers, both for business and leisure, the report calls out five phases of a customer journey – Interest, Research, Booking, Experience and Sharing. The report states that during key research-heavy phase of interest, research and experience, digital plays a pivotal role with over 86 percent of consumers being influenced by online channels. During this phase, travelers spend their maximum time on search, travel tour provider websites, price comparison websites, and travel articles. Online video too plays a significant role with 21 percent of travelers being influenced by this platform. In the booking and sharing phase, the report states that nearly 60 percent of customers book transport and lodging online, and over 50 percent share feedback online with social media being the dominant platform.

Talking about the market opportunities for online travel players, Vikas Agnihotri, Country Director – Sales, Google India said, “New users perceive that online channels are geared towards the more frequent flyers and experience-oriented travellers; and existing travelers research online but the lack of trust in payments and booking experience make them end up booking offline. If travel players tap these online users through personalised marketing, messaging and travel plans, they can further augment online travel bookings. This can be done by adopting digital technologies to influence customers early in the journey and moving from one-time engagement to ongoing relationships to have a positive impact.”

“There is a perception amongst consumers that online channels are geared towards premium customers, along with a marked distrust around payment and pricing terms. It is imperative for businesses to address these concerns in order to effectively tap into the growing base of users.” Arpan Sheth, partner Bain & Company said.

Decoding the Indian travelers

The report further identified the five cohorts of travelers in India, across business and leisure travel, and categorised each against their online research behavior:

Frequent flyers: Nearly 70 percent of them booked online, cumulatively spent $17 billion in 2018. They make their choices based on convenience, availability, brand preference and past experiences.

Budget business traveler: 86 percent of them researched online whereas only 60 percent book online, cumulatively spent $20 billion in 2018. This cohort makes their decisions based on cost of travel, availability and consultation amongst their personal business network.

Experience-oriented traveler: Around 70 percent of their bookings were done online and cumulatively spent $22 billion in 2018. They extensively research both online and offline for ‘authentic’ experiences and convenience of options; display high loyalty towards preferred brand of airlines or hotels and actively share experiences.

Budget group traveler: 90 percent researched online and 55 percent booked online, cumulatively spent $29 billion in 2018. They make multiple decision-makers in the process and take the final decisions based on minimal cost.

Occasional travel visiting friends/relatives: 92 percent researched online but only 60 percent booked online, spent $6 billion in 2018. They maximize family convenience within a budget and believe online terms and conditions are restrictive.

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Ideal ocean cruise ship: Ship sizes and what they mean for your cruise

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Ships sizes range from megaships (over 4,000 passengers) to very small vessels and luxury yachts whose passengers number in mere dozens, and knowing the differences is key to planning your best cruise vacation.

Cruise experts have divided today’s ships into six categories and provides information on the benefits each provides: XS, S, M, L, XL and XXL.

Extra, Extra Large Ships (XXL) – 4,000+ passengers

These megaships boast unparalleled options in entertainment and amenities. They truly give the impression of being on board a floating city and provide endless choices in dining, activities and shopping (some are so large as to even incorporate a “mall” area with brand name stores). If you desire a resort-type feel from your cruise or worry about sea-sickness, this may be your best option.

Some benefits of XXL ships:

•A large variety of cabin options in every price range
•Dining options that range from small, informal cafes to 5-star restaurants
•Over the top entertainment options that include Broadway-quality shows, 3-D movie theaters, large casinos, extensive waterpark areas and more
•Extremely comprehensive children’s programs and amenities
•Increased ship stability; little sea motion

Example XXL ships:

•Royal Caribbean International: Allure of the Seas, Spectrum of the Seas; Ovation of the Seas, Quantum of the Seas, Anthem of the Seas, Harmony of the Seas, and Oasis of the Seas, Symphony of the Seas, Odyssey of the Seas
•Disney Cruise Line: Disney Dream and Disney Fantasy
•Costa Cruise Line: Costa Diadema, Costa Venezia, Costa Smeralda
•MSC Cruises: MSC Meraviglia, MSC Seaside, MSC Virtuosa; MSC Grandiosa, MSC Bellissima, MSC Seaview, MSC Preziosa, MSC Divina MSC Splendida,
•Norwegian Cruise Line: Norwegian Bliss, Norwegian Epic, Norwegian Escape
•Carnival Cruise Line: Carnival Panorama, Carnival Vista, Carnival Mardi Gras

Extra Large Ships (XL) – 3,000-3,999 passengers

These extra-large ships are a destination unto themselves and are especially good for families and multigenerational cruises due to the many amenities found onboard. There is something for everyone, and many cruisers enjoy their time onboard as much as they do the destinations they visit.

Some benefits of XL ships:

•An abundance of cabin options in many different price ranges
•A variety of dining options, ranging from ultra-casual to very upscale and formal
•A popular favorite with families due to the extensive children’s amenities and programs
•Round-the-clock facilities and activities, such as casinos, water parks, gyms and spas
•Excellent entertainment options and Broadway-quality shows like Royal Caribbean’s productions of Chicago, Hairspray and Saturday Night Fever

Example XL ships:

•Royal Caribbean International: Adventure of the Seas, Explorer of the Seas, Mariner of the Seas, Navigator of the Seas, Voyager of the Seas, Freedom of the Seas, Independence of the Seas, Liberty of the Seas
•Princess Cruises: Caribbean Princess, Crown Princess, Emerald Princess, Majestic Princess, Ruby Princess, Regal Princess, Royal Princess, Sky Princess
•Carnival Cruises: Carnival Splendor, Carnival Sunshine, Carnival Dream, Carnival Breeze, Carnival Magic, Carnival Horizon, Carnival Sunrise
•Celebrity Cruises: Celebrity Reflection,
•MSC Cruises: MSC Poesia, MSC Magnifica, MSC Musica,
•Costa Cruises: Costa Fascinosa, Costa Favolosa, Costa Magica, Costa Pacifica
•Norwegian Cruise Line: Norwegian Breakaway, Norwegian Encore, Norwegian Getaway, Norwegian Joy

Large Ships (L) – 2,000 to 2,999 passengers

Large ships offer many of the same amenities as the XL ships, on a slightly smaller scale. They don’t necessarily require a ship map to navigate to entertainment and activity options, and tend to have more personal touches.

Some benefits of L ships:

•Many cabin options in different price ranges
•Numerous dining options, ranging from very casual to formal
•A popular favorite with families due to the extensive children’s amenities and programs
•Also popular with older cruisers, as the pace onboard is not as frenetic
•A variety of activities, such as casinos, gyms and spas and often there are bridge instructors on longer itineraries
•Entertainment options may include things like a fireworks display, outdoor movies and stage shows
•Onboard lecturers are often more cerebral with topics like history, politics and geography.

Example L Ships:

•Royal Caribbean International: Enchantment of the Seas, Rhapsody of the Seas, Vision of the Seas, Grandeur of the Seas, Brilliance of the Seas, Jewel of the Seas, Radiance of the Seas, Serenade of the Seas, Majesty of the Seas
•Princess Cruises: Coral Princess, Golden Princess, Grand Princess, Star Princess, Diamond Princess, Sapphire Princess, Sun Princess
•Cunard Cruises: Queen Victoria, Queen Elizabeth, Queen Mary 2
•Holland America Line: Eurodam, Nieuw Amsterdam, Koningsdam,, Nieuw Statendam
•Disney Cruises: Disney Magic, Disney Wonder
•Carnival Cruises: Carnival Elation, Carnival Paradise, Carnival Inspiration, Carnival Fascination, Carnival Imagination, Carnival Sensation, Carnival Ecstasy, Carnival Fantasy, Carnival Legend, Carnival Miracle, Carnival Pride, Carnival Triumph, Carnival Victory, Carnival Freedom, Carnival Liberty, Carnival Glory, Carnival Valor, Carnival Conquest
•MSC Cruises: MSC Opera, MSC Armonia, MSC Lirica, MSC Orchestra, MSC Seaview
•Costa Cruises: Costa Mediterranea, Costa Luminosa, Costa Deliziosa, Costa Serena, Costa Fortuna, MSC Sinfonia
•Celebrity Cruises: Celebrity Constellation, Celebrity Edge, Celebrity Summit, Celebrity Infinity, Celebrity Millennium, Celebrity Eclipse, Celebrity Equinox, Celebrity Solstice Celebrity Silhouette
•Norwegian Cruise Line: Norwegian Dawn, Norwegian Gem, Norwegian Jade, Norwegian Pearl, Norwegian Sky, Norwegian Spirit, Norwegian Star, Pride of America

Medium Ships (M) – 951 to 1,999 passengers

Medium ships generally offer a slower pace than their large counterparts, with fewer crowds, less noise and more modest offerings when it comes to activity and entertainment options. Many cruisers prefer this size of ship for its “relaxation” vibe. Many of these ships tend to be more luxurious with more personal service.

Some benefits of M ships:

•Many of the premium cruise lines have ships that fall into this category
•Several dining options
•Medium-size ships still tend to have amenities like casinos, pools and spas
•Entertainment options tend to include more enrichment activities
•Attracts a more mature crowd that is focused on relaxation and enjoyment of the voyage
•Smaller size of the ships open up options as far as itineraries and ports
•Itineraries are likely to be 10 days or longer

Example M Ships:

•Holland America Line: HAL Maasdam, HAL Veendam, HAL Amsterdam, HAL Rotterdam, HAL Volendam, HAL Zaandam, HAL Oosterdam, HAL Westerdam, HAL Zuiderdam, HAL Noordam
•Princess Cruises: Coral Princess, Island Princess, Dawn Princess, Sea Princess, Sun Princess
•Crystal Cruises: Crystal Serenity
•Oceania Cruises: Oceania Riviera
•Costa Cruises: Costa Classica, Costa Victoria, Costa neoRomantica, Costa neoRiviera
•Bahamas Paradise Cruise Line: Grand Celebration
•Norwegian Cruise Line: Norwegian Sun

Small Ships (S) – 950 passengers or less

Small ships fill a niche for cruisers that are looking for more in-depth exploration of the regions they visit. They can visit ports that are inaccessible to larger ships, and exotic itineraries are the standard. Most river cruise ships and almost all the luxury lines have ships that fall into this category.

Some benefits of S ships:

•Most cabins are suites and have balconies
•Luxury and service are frequently a focal point of a small ship voyage
•Amenities, while limited, tend to be very high end, including dining, shore excursions, spas and enrichment activities.
•Small ships trend toward a truly all-inclusive fare
•Smaller dining and shared areas lend themselves lively conversations and closer relationships with fellow passengers.
•Itineraries tend to be 10 days or longer

Example S ships:

•Princess Cruises: Pacific Princess
•Crystal Cruises: Crystal Symphony
•Regent Seven Seas Cruises: Seven Seas Mariner, Seven Seas Voyager, Seven Seas Explorer
•Oceania Cruises: Oceania Insignia, Oceania Nautica, Oceania Regatta, Oceania Sirena, Oceania Marina
•Silversea Cruises: Silver Muse, Silver Moon
•Azamara Club Cruises: Azamara Journey, Azamara Quest, Azamara Pursuit
•Costa Cruises: Costa Voyager
•Viking Ocean Cruises: Viking Star, Viking Sea, Viking Sky, Viking Sun, Viking Orion, Viking Jupiter
•Seabourn: Seabourn Encore, Seabourn Ovation

Extra Small Ships (XS) – 201-499 passengers

Very small ships offer a private, exclusive ambiance, along with personalized service and the advantage of being able to port almost anywhere. Passengers get a feel for the water and experience destinations in a very close-up, personal way.

Some benefits of XS ships:

•The most important benefit of small ship cruising is an immersive experience in the destination. Very small ships allow an in-depth exploration of nature, culture, history and learning not possible on larger ships.
•Passengers tend to be a well-traveled, worldly crowd who enjoy the pursuit of education and exploration of the destinations they visit
•Very personal attention from the crew; with luxury cruises this translates to personal attendants that see to your every need
•More solitude and the opportunity to relax and pursue your own interests
•Seating is usually open, with no set tables

Example XS ships:

•Regent Seven Seas Cruises: Seven Seas Navigator
•Silversea Cruises: Silver Cloud, Silver Wind, Silver Shadow, Silver Whisper, Silver Spirit
•Seabourn: Seabourn Legend, Seabourn Pride, Seabourn Odyssey, Seabourn Quest, Seabourn Sojourn, Seabourn Spirit,
•Windstar Cruises: Wind Surf, Star Pride, Star Breeze, Star Legend
•Paul Gauguin Cruises: MS Paul Gauguin
•Voyages to Antiquity Cruises: MV Aegean Odyssey
•Star Clippers: Royal Clipper

Extra-Extra Small Ship-XXS- Under 200 passengers

Example of XXS ships:

•Celebrity Cruises: Celebrity Flora-100 Celebrity Xpedition, Celebrity Xperience, Celebrity Xploration
•SeaDream Yacht Club: Sea Dream I, SeaDream II
•Silversea Cruises: Silver Discoverer, Silver Explorer, Silver Galapagos
•Windstar Cruises: Wind Spirit, Wind Star, Wind Spirit,
•Star Clippers: Star Clipper,Star Flyer

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Airbus to attend Turkey’s IDEF 2019

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Airbus will attend Turkey’s IDEF 2019, 14th International Defense Industry Fair, held at TÜYAP Fair and Congress Center in Büyükçekmece, Istanbul from April 30th to May 3rd.

At the exhibition Hall 2, Stand 234, Airbus will display a range of innovative defence and security products and services, including military aircraft and helicopters, perfectly in line with the aspirations of the Turkish Armed Forces in regard with the recently launched modernization programs.

Airbus will showcase a scale model of the A330 MRTT – the only new generation strategic tanker/transport aircraft combat proven and available today. The large 111 tonnes basic fuel capacity of the successful A330-200 airliner enables the A330 MRTT to excel in air-to-air refuelling missions without the need for any additional fuel tank.

Also on display, the scale mock up of the C295 in Maritime Patrol Aircraft configuration – a very robust and reliable, highly versatile tactical airlifter able to carry up to 9 tonnes of payload, at a maximum cruise speed of 480 km/h. Fitted with a retractable landing gear and a pressurised cabin, it can cruise at altitudes up to 25,000 ft, while retaining remarkable short take-off & landing (STOL) performance from unprepared, short, or soft airstrips, as well as excellent low level flight characteristics.

A scale mock up of the Astrobus S Earth observation satellite will be on show. The latest generation of Earth Observation Satellites for Very High Resolution (VHR) applications, it combines the advantages of a low-mass system (around 400 kg only) with the strong performance of a larger Earth observation satellite platform.

Turkey is a key partner for Airbus. With nearly 30 years of successful collaboration in civil and military aviation, Airbus is committed to long-term, mutually-beneficial industrial cooperation, working closer with its partners and customers as flag carrier Turkish Airlines, the Ministry of Defense and Presidency of Defense Industries, as well as Turkey’s air force, navy and coast guard.

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