It’s not just Hawaii that has become ridiculously expensive, and what goes up must come down. As we keep saying, this is a national and global situation. We have reported that here in Hawaii, Hawaii hotel and vacation rentals have skyrocketed. In Florida, skyrocketing hotel rates have depressed demand. It comes as Florida’s version of Hawaii’s controversial HTA, Visit Florida, warned today.
BOH: Different factors come into play in two places that our visitors often compare, rightly or wrongly. Dynamic pricing (constantly monitoring and changing costs based on perceived demand) may now begin to put downward pressure on prices here in Hawaii as well as in Florida. This could at least bring some welcome relief, starting in late summer and fall. We expect prices to decline by an average of around 25% or more during this period. This is changing rapidly and is something we continue to monitor.
Much like Hawaii, this news follows a record first quarter of 2022. Much faster-than-expected travel demand is a global phenomenon as economies recover and demand to return to travel is unprecedented. Who doesn’t feel like traveling right now, it seems.
Due to the drop in demand, it has been reported that hotels in Florida will have to recalibrate their prices downward. This is according to the suggestions of the state tourist board.
Like Hawaii, international arrivals in Florida remain somewhat depressed with various ongoing travel regulations. And it’s not just the cost of hotels that hurts Hawaii and Florida, but also the cost of airfare and other vacation costs. Florida doesn’t suffer as much from vehicles, compared to car rentals in Hawaii, because it’s as much a driving vacation destination as it is flying. Unlike Hawaii, many visitors to Florida bring their own car.
The Visit Florida tourism board has been quoted as saying things that sound completely Hawaiian. “For the past two years, we couldn’t set the prices high enough.” But now, “the strongest correlation [is] between rising room prices and falling demand… Inflation [is] are starting to catch up with us in most markets.
Also, like in Hawaii, high room rates continue to be reflected in increased overall revenue, but in both states this could quickly come to a halt.
More information on these related articles:
As Hawaii Hotels Hit Their All-Time High in the U.S., What Visitors Can Do
Hawaii Vacation Cost | Rise of hotels and vacation rentals in Hawaii
Dynamic Pricing Just Driven Your Airfare to Hawaii Sky-High
Hawaii Visitor Fees: Perception, Value, and a Glaring Example