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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.


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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).

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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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Mediterranean Resort & Hotel Real Estate Forum returns to Greece

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Now in its fifth year, the Mediterranean Resort & Hotel Real Estate Forum (MR&H) will return to Greece for the second year in succession this October. The event, hosted by Questex, is dedicated to the investment, development and operation of resorts and hotels within the Mediterranean region. This niche, but highly specialized area, comprises various elements; hotel, residential, marinas, health clubs, children’s activities, retail, sports facilities, F&B, all of which need to be carefully woven together with seamless operation to create a successful resort.

The conference will be held at the Hilton Athens on the 29-31st October 2019. A fitting venue for Hilton’s celebration of 100 years in hospitality and the continuation of the premise that the group was founded on; “travel can make the world a better place”.

The dynamic growth of tourism in Greece continues to boost investment activity throughout the country and throughout the wider Mediterranean region. Speaking at MIPIM last month, Secretary General for Tourism Policy and Development George Tziallas said; “Half of all funding under Greece’s 2016 development law has been channeled into tourism ventures, while more than 400 investment plans have been submitted in the last three years to the tourism ministry for approval.”

This statement is supported by data recently released by Horwath HTL during the International Hotel Investment Forum (IHIF) which revealed Greece is a prime investment opportunity for international hotel chains as only 1.7% of total units currently operate under an international brand. Results from the joint investor sentiment survey from Tranio and IHIF showed Greece listed as one of the European countries that is most attractive for hotel real estate investment.

Stakeholders from leading operators including Thomas Cook, Club Med and Nobu attend the event alongside investors from KSL, Starwood Capital Group and Dolphin Capital all recognizing the value of coming together as a collective to debate, converse and discuss.

Registration for MR&H 2019 is now open and delegate tickets can be purchased at the best value Early Bird rate until the end of May.

Enterprise Greece have pledged their continued support for MR&H and Grigoris Stergioulis, Chairman & CEO at Enterprise Greece said in relation to the ongoing collaboration; “Building on the success of the event last year, the positive working relationship with Questex and the significant opportunities that exist for investors in the Greek hotel market, we’re thrilled to once again partner with MR&H and look forward to welcoming the event to Greece for the second year.”

Alexi Khajavi, Managing Director of EMEA Hospitality + Travel Group, Questex said; “The tourism and hospitality prosperity that Greece is enjoying is leading to significant activity from serious investors and developers. As a conference host, our role is to facilitate these meetings, connections and interactions in an environment that is educational and energizing. With the continued support from Enterprise Greece, Hilton providing the setting, and amongst very encouraging industry data, we’re confident that MR&H will prove to be an event not to be missed for those currently active or keen to do business within the Mediterranean resort and hotel space”.

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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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GCC produces 1.8 million overnight stays in Germany during 2018

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The German National Tourist Board (GNTB) has announced that it will be showcasing a range of key destinations at Arabian Travel Market (ATM) 2019, which takes place at the Dubai World Trade Centre from 28th April to 1st May.

Participants from Germany partnering with the GNTB this year include the ‘Hotel Palace Berlin’; ‘Frankfurt Tourist and Congress Board’; ‘Baden-Baden Tourism Board’; ‘OUTLETCITY METZINGEN’, the State Tourist Board SouthWest-Germany (Baden-Württemberg Tourismus) and the Black Forest Highlands (Hochschwarzwald Tourismus).

The GNTB’s tourism partners covering local tourist boards, luxury hotels, hospitality, retail, spas and theme parks, each has its own unique proposition, whether spring, summer, autumn or winter, emphasising that Germany is a diverse and unique all year-round travel destination.

Underscoring the relevance of ATM to ‘Destination Germany’, Sigrid de Mazieres, Director for the Gulf countries at the German National Tourist Office (GNTO), an affiliate of the German National Tourist Board (GNTB), commented:

“ATM presents us with an ideal opportunity to showcase our wide-ranging tourism offering from dynamic cities to breathtaking countryside with fairytale castles, lush forests and mountains. In addition, there are great family attractions, excellent shopping centres and superb sightseeing opportunities – visitors will be fascinated by the incredible diversity that Germany has to offer.”

The GCC market is Germany’s third-largest non-European source market behind China and the US and is important for Germany. GCC travellers tend to stay an average of 11 nights and spend on average $5,300 per person per trip, significantly more than other international travellers.

According to the latest forecast from the GNTB, GCC nationals visiting Germany are expected to grow to 3.6 million overnight stays by 2030, compared with 1.8 million guest nights from Gulf nationals recorded in 2018, with key markets being UAE, Saudi Arabia and Kuwait.

The forecast increase is being attributed to the collective efforts of all German Tourism stakeholders identifying and accommodating the travel requirements of GCC nationals, not to mention the excellent connectivity provided through flights from the GCC to Frankfurt, Munich, Dusseldorf, Hamburg and Berlin. In Germany’s hospitality and retail sectors, it is common to meet Arabic speaking staff, familiar with Islamic culture and tradition. Hotels offer copies of the Quran and prayer mats on demand, connecting family rooms, plus restaurants serving halal food are easy to find.

Germany’s attraction as a destination of choice for tourists, is further illustrated by the number of visitors recorded in 2018. Last year, Germany’s inbound tourism figures reached record levels for the ninth year in a row. According to the German Federal Statistical Office, there were 88 million international overnight stays recorded (in accommodation establishments with at least ten beds) – an increase of 5% compared with 2017.

According to IPK World Travel Monitor’s annual survey, in 2017, Germany was the top ranked country among European tourists for cultural trips and with 13.1 million inbound business travellers from Europe, it ranked number one as a business destination in 2018.

The German National Tourist Board (GNTB) will be at ATM 2019 stand no. EU5930.

 

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Tourism for Tomorrow Awards: WTTC makes the 2019 announcement

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The World Travel & Tourism Council (WTTC) is delighted to announce the 2019 leaders in sustainable tourism at the Tourism for Tomorrow Awards ceremony. The Awards, now in their 15th year, took place at a special ceremony during the WTTC Global Summit in Seville, Spain, to celebrate inspirational, world-changing tourism initiatives from around the globe.

The 2019 WTTC Tourism for Tomorrow Award Winners are highly commended and recognized for business practices of the highest standards that balance the needs of ‘people, planet and profits’ within the Travel & Tourism sector. Our 2019 Winners promote inclusive growth and illustrate a strong commitment to supporting change and transformation in business practices and consumer behavior towards a more environmentally conscious sector.

The Winners of the 2019 Tourism for Tomorrow Awards are:

  • Climate Action Award – Bucuti & Tara Beach Resort, Aruba
  • Investing in People Award – Lemon Tree Hotels Limited, India
  • Destination Stewardship Award – St. Kitts Sustainable Destination Council, St. Kitts and Nevis
  • Social Impact Award – Awamaki, Peru
  • Changemakers Award – SEE Turtles, USA

The Awards are judged by a panel of independent experts, led by Prof. Graham Miller, Executive Dean, Professor of Sustainability in Business, University of Surrey.  The panel included academics, business leaders, NGO and governmental representatives who narrowed down the list of 183 applications to just fifteen finalists. The three-stage judging process included a thorough review of all applications, followed by on-site evaluations of the Finalists and their initiative.

The Winner of each category was determined by the WTTC Tourism for Tomorrow Awards 2019 Winners’ Selection Committee, chaired by Fiona Jeffery OBE, Founder & Chairman, Just a Drop, and composed of Wolfgang M. Neumann, Non-Executive Director and Strategic Advisory, Global Hospitality, Travel & Tourism Sector; John Spengler, Akira Yamaguchi Professor of Environmental Health and Human Habitation, Harvard T.H. Chan School of Public Health; and Louise Twining-Ward, Senior Private Sector Specialist, Global Tourism Team, World Bank.

WTTC represents the global private sector of Travel & Tourism. Its Global Summit is the most important event in the sector worldwide each year.

Gloria Guevara, President & CEO, WTTC, commented: ‘The finalists in this year’s Tourism for Tomorrow Awards showcase the many ways in which our industry is dedicated to sustainable growth. In 2018, the Travel & Tourism sector contributed 10.4% of global GDP and supported 319 million jobs across the world. It is therefore essential that we continue to grow in the most sustainable and responsible way possible. The new award categories for this year are aligned with WTTC strategic priorities and illustrate that all members of this industry play a key role in driving the sector forward to a more responsible future. I congratulate them all on their fantastic accomplishments and leadership.’

 Fiona Jeffery, OBE, Chair, WTTC Tourism for Tomorrow Awards, said: ‘The aim of the WTTC Tourism for Tomorrow Awards is to showcase some of the most exceptional examples of sustainable tourism practices in the world, and inspire and encourage our industry to make a positive impact for both current and future generations. Over 15 years, we have seen the industry make great strides towards achieving these goals and we can see positive change happening. Our recent survey results show that 67% of travellers would consider a travel company’s sustainability agenda when booking a trip, whilst 48% of travellers would now pay more money to travel sustainably. Whilst there is still more to be done, we must harness the momentum for change to protect the product that sustains our very own industry.’

Jeff Rutledge, President and CEO, AIG Travel, Headline Sponsor of the Awards, stated: ‘From socially-inclusive employment initiatives to establishing one of the first rewilding projects in the Philippines, this year’s WTTC Tourism for Tomorrow Awards finalists have proved to be an incredibly diverse group of changemakers from around the world. They have demonstrated that, regardless of the size or purpose of business, all members of the Travel & Tourism industry can afford to make sustainability a priority, and become part of our collective journey towards a greener future.’

For more information on the Tourism for Tomorrow Awards and all the Winners, please visithttp://wttc.org/t4tawards

Full list of Winners and Finalists:

Climate Action Award, for organisations undertaking significant and measurable work to reduce the scale and impact of climate change:

  • WINNER: Bucati & Tara Beaach Resort
  • FINALIST: The Brando, Tetiaroa Private Island, French Polynesia
  • FINALIST: Tourism Holdings Limited, New Zealand

Investing in People Award, for organisations demonstrating leadership in becoming an exciting, attractive, and equitable employer in the sector:

  • WINNER: Lemon Tree Hotels Limited, India
  • FINALIST: Reserva do Ibitipoca, Brazil
  • FINALIST: Shanga by Elewana Collection, Tanzania 

Destination Stewardship Award, for organisations helping a place to thrive and bring forward its unique identity for the benefit of its residents and tourists: 

  • WINNER: St. Kitts Sustainable Destination Council, St. Kitts and Nevis
  • FINALIST: Grupo Rio da Prata, Jardim and Bonito, Brazil
  • FINALIST: Masungi Georeserve, Philippines

Social Impact Award, for organisations working to improve the people and places where they operate:

  • WINNER: Awamaki, Peru
  • FINALIST: Intrepid Group, Australia
  • FINALIST: Nikoi Island, Indonesia

Changemakers Award, this year focused on organisations fighting the illegal wildlife trade through sustainable tourism: 

  • WINNER: SEE Turtles, USA
  • FINALIST: Kelompok Peduli Lingkungan Belitung (KPLB), Indonesia
  • FINALIST: The Cardamom Tented Camp, Cambodia

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