Vacation rentals throughout Hawaii are out of wack, with high supply and pricing, and low demand and occupancy. This was reported by the State’s Department of Business, Economic Development & Tourism in their Hawaii Vacation Rental Performance Report for October.
If this trend continues, we expect a softening of nightly rates and more deals ahead for vacation rentals. Travelers booking vacation rentals should always scour for promotional opportunities before making a reservation.
Key insights from Hawaii’s vacation rental trends:
The number of vacation rental nights available last month 761,000. But of those, just 387,400 nights were rented. That comes to an occupancy rate of 50.89%. Hawaii hotels, by comparison, are excelling in occupancy, reaching 74.5% last month.
Vacation rental supply is down 20% compared with 2019. The average daily rate for vacation rentals statewide was $265, which is still +38% compared with 2019.
Maui, still recovering from the Lahaina fire, saw its supply of vacation rentals drop, now -40% at 193,900 nights, with demand at just 98,500 units. Occupancy was 50.8%, and average rate was $279.
Honolulu had 225,900 nights available last month, -12.2% compared with 2019. Unit demand was only slightly better than statewide, at 53.6%. The average daily rate of $225 was the most reasonable of the islands.
Big Island had 211,700 available room nights, -6% compared with 2019. But demand sank to the lowest of all the islands, at just 44.3%. Average daily rates of $299.
Kauai had the fewest vacation rentals available at 129,600 nights, -10% compared with 2019. Unit demand was down 29% compared with 2019, which was 74,000. That yielded the highest occupancy of the islands, at 57.1%. Average daily rates were $356.
Continuation of the prior month’s trend.
We recently reported on September Hawaii vacation rental data, which also revealed mixed results including a drop in demand for Hawaii vacation by 40% in September.
Summing up Hawaii vacation rentals.
In conclusion, Hawaii vacation rentals can still provide substantial cost-sharing benefits, especially for larger groups, a more local experience, and advanced booking options.
However, potential hidden costs, quality concerns and sometimes misleading advertising are among issues impacting vacation rentals that should be carefully assessed in advance. These impact the overall affordability and value for Hawaii vacation seekers.
Issues including undisclosed fees and variability in amenities, quality, and consistency also appear to affect the appeal of vacation rentals compared to hotels.
If you’ve stayed in Hawaii vacation rentals before, are you more or less inclined to do so in the future?
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