Posts Tagged ‘market update’

Kolea at Waikoloa Beach Resort Market Update

Saturday, May 4th, 2013

Recently we wrote a blog about how the tourism industry in Hawaii experienced nice growth in the first quarter of 2013 and more specifically the vacation rental industry.  At Kolea at Waikoloa Beach Resort, where we manage the largest percentage of vacation rentals we experienced even better growth.   While the vacation rental industry as a whole in Hawaii has experienced a significant growth in occupancy, it has not experienced that significant of a growth in rate.  Kolea saw growth in both areas.

With Kolea offering a variety of vacation rentals, they all saw a fair growth.  The larger 3 bedroom oceanfront villas saw the largest growth in occupancy.  The two bedroom villas saw a growth that was just slightly less than that of the larger villas.

Two factors help contribute to the growth in average rate.  With the increase in occupancy of the larger villas being greater than that of the smaller villas, it naturally raised the average nightly rate slightly.  Across the board, all villas experienced over a 7% increase in the average nightly rate.  Combined the average nightly rate at Kolea increased over 10%.

With April 2013 already being significantly better than April 2012, it appears Kolea should continue to have success throughout 2013.

Hawaii Vacation Rental Market Update ~ June 2012

Thursday, August 30th, 2012

As the 1st half of 2012 is behind us, the positive momentum continues into the 2nd half of the year. June of 2012 showed an overall increase in expenditures, daily spending, arrivals, meetings, conventions and incentives along with honeymoon visitors. All areas of accommodation selection including hotels, condos, and timeshares showed positive growth, some with double digit percentage increases for the month.

Expenditures rose by 20.4%, or $207 million as compared to the previous year, an all-time record for the month of June. The month also showed an 11.5% increase in overall arrivals through the state compared to the previous year. Many of the influential major market areas contributed to that increase such as the mainland United States, Asia, Latin America, Oceania, and Japan. Europe and Canada showed positive numbers however, they were less substantial.

Daily spending per person rose by just over 10% to about $192 per day. Meetings, conventions and incentives showed an additional 30.7% increase in arrivals from last year with an overall increase of 2.6% for the first half of the year. Fewer visitors chose to get married in Hawaii however, the honeymoon sector increased by nearly 15% over that of last year. It also appears that arriving travelers decided to visit one island rather than multiple locations over that of last year. With an increase of over 11%, visitors are making more of a commitment to their chosen destination for perhaps a slightly shorter amount of time. The average length of stay did decline slightly by just under 2%.

Hotels and timeshare properties witnessed the greatest increase of 14.6% and 16.8% respectively. Condo properties saw an increase as well from last year, showing a less impressive but positive growth of 6.5%.

In respect to the Big Island, arrivals increased by nearly 8% and visitor spending increased by just over 4% to $130.8 million. Japan and Canada had the greatest arrival increase as compared to other major market areas. Each of the islands showed consistent arrival increases and most had higher earnings as compared to the previous year.

The Hawaiian Islands are certainly moving in the right direction month over month and in this case, year over year. We look forward to the continued prosperity and support shown by both domestic and international visitors, moving the Aloha State into the future with a positive outlook.

Kolea Market Update ~ First Half of 2012

Tuesday, July 31st, 2012

Hawaii has been enjoying one of its best years since Kolea was built. The first half of 2012 has consistently been better each month than 2011.

All of the major markets arrivals have increased at least 4% from 2011. The largest increase has come from the Japanese market at over 17%. All the other major markets showed similar increases.

Total expenditures have increased at an astounding figure of over 21%. Several months broke records for Hawaii for total expenditures. June was the latest month with $1.2 billion in expenditures.

With the Japanese market showing the largest growth, hotels and timeshares were the accommodation types that also showed the largest growth. Many Japanese come to the islands on package deals with the large hotel chains such as Hilton contributing to their hotel as well as timeshare growth. This was the first year in many that the increase from year to year has decreased for condos.

What does this mean for Kolea? With a positive growth in both arrivals and expenditures, this fairs well for a luxury property such as Kolea. We, Waikoloa Vacation Rentals, have seen slightly greater increases at Kolea in all major aspects. The significant increase in expenditures led to an increase in average nightly rate and length of stay at Kolea. The increase in arrivals led to higher occupancy.

Hawaii Vacation Rental Market Update- May 2012

Thursday, July 19th, 2012

Following the trend for the year, May of 2012 was great for the State of Hawaii. Arrivals and visitor expenditures both grew in dramatic form as compared to the previous year. Average length of stay increased as did meetings, conventions, and incentives. Each major market area showed improvement as compared to 2011 as well.

Expenditures and arrivals both increased by 17.5% and 12.5% respectively, making this month the greatest May on record in history. Each major market area continued to show growth. Japan continues to increase their support along with the majority of the US markets. The Canadian market was steady from last year. Scheduled airline seats have continued to increase as well for each of the major islands over the past five months of 2012, increasing overall by 4.5%. The vacation rental industry showed an increase from the previous year and indicated stronger growth than that of the previous month, increasing by about 8% from 2011. The Canadian market, though steady with arrivals, chose to stay in condominium properties over that of hotels in dramatic form. With a 20.2% increase in accommodation selection from the previous year, Canada is certainly showing its support for the industry.

O’ahu has shown the largest growth of all of the islands in relation to visitor arrivals from the previous year, increasing by 15.1%. The Big Island showed an 8.9% increase in arrivals while Maui saw a 6.8% positive change. Though showing the fastest growth during the first three months of 2012, Kaua’i offered a 4.3% positive change compared to last May. These increases are attributed to additional mainland marketing and an active island branding campaign. The purpose of this approach is to match the various islands and the personalities of potential visitors, ensuring a great vacation and repeat visit. As Hawaii gains in popularity, arriving guests are also visiting different locations in an effort to experience the individuality of each of the Hawaiian Islands.

The current forward momentum will continue to get the State of Hawaii out of the shadow of recent years. With most of the influential markers looking positive, the State of Hawaii is proving yet again that it is a stronger destination as we move further into 2012 and beyond.

Hawaii Vacation Rental Market Update- April 2012

Thursday, July 19th, 2012

Now into the second quarter of 2012, tourism is continuing to show improvement for the State of Hawaii. Arrivals from nearly every major market area, increased expenditures, more multi-island visits, and organized tour groups all contributed to a strong month.

One unique highlight is an increase of expenditures by nearly 27% as compared to April, 2011. It also marked the highest amount of spending by visitors on record for the state as compared to the same month in history. Arrivals from the Canadian market slowed down a bit though still higher than this time last year, increasing by 3.3%. The biggest gain was shown by the Oceana, Japan, and the other Asian markets with arrivals, both increasing with huge percentages as compared to April, 2011. Scheduled air seats fell off from the Eastern US market due to decreased service from Chicago by American Airlines and United but those decreases were offset by increased seat demand from the West Coast. East Coast visitors are still making the trip but connecting through the major West Coast cities. Those carriers are now offering seasonal service out of Chicago rather than year round.

The arrival growth rate of the major islands continues to show improvement. O’ahu increased by 12.9%, the Big Island moved up 7.3%, Kaua’i was next in line at 4.6%, and Maui was in the last spot, showing a positive increase of arrivals at 4%. Each of these examples is compared to April, 2011. Vacation Rental occupancy did not appear to move up at quite the same pace as the other important factors throughout Hawaii though it held firm to last year’s numbers. Visitors were coming in but simply choosing to stay elsewhere overall throughout the state.

With most of the important indicators showing positive momentum, 2012 is proving to be a great year for the State of Hawaii as a whole. Perhaps these statewide increases will equate to the same forward motion for the vacation rental industry further into 2012.

Hawaii Tourism Update

Thursday, January 12th, 2012

Over the past year, there has been an overall increase in the number of visitors and length of stay to the State of Hawaii through November of 2011.  Major markets such as Canada, Oceania, and various Asian countries have increased their travel to the state, increasing the overall average.   Much of the increase is due to added flight operations from countries such as China, Korea, Japan, Canada and Oceania direct to Honolulu.  The Hawaii Tourism Authority’s Airlift Development Program, a cooperative airline program geared to bring more guests to Hawaii, has done a great job sustaining routes and encouraging new ones.

One of largest contributing markets is Canada, showing nearly double digit increases month over month from 2010.  Much of this can be attributed to a stable Canadian economy, increased awareness and overall stronger marketing.   On average, Canadian arrivals have increased over 20% since last year while some US markets have remained flat.

Compared to 2010, 2011 tourism has increased almost 7% as a whole and the length of stay has increased nearly 1%.  The numbers may be a bit higher when the actual vs. projected arrivals for December 2011 are reported and available through the Hawaii Tourism Authority.

2010 Hawaii Vacation Rental Market Analysis

Monday, February 28th, 2011

2010 was one of the best years the Hawaii tourism industry has recorded in years. With the current economic state along with the increase in tourism many vacationers are choosing vacation rentals for their accommodations versus other alternatives, which fairs well for vacation rental homeowners in Hawaii.

The Hawaii Tourism Authority reported an increase in visitors in Hawaii in all four quarters in 2010 versus 2009. The percentage increase grew as the year progressed leading speculation that there will be continued growth in Hawaii in 2011.

Hawaii Tourism 2009 vs 2010

Looking into the vacation rental industry in Hawaii it appears the vacation rental industry enjoyed the growth of Hawaii tourism plus some more. Instant Software, the most used vacation rental reservation software nationally, reported a substantial increase in vacation rental reservations in 2010 versus 2009 in Hawaii. While Hawaii tourism grew close to 10% in 2010 the vacation rental occupancy grew 20% in 2010. This growth could be attributed to the economy, enhanced marketing efforts by vacation rental companies nationally, Gulf of Mexico issues, along with many other factors. Along with the increase occupancy there was an increase in average daily rate by 5%, which confirms that the increase was not due to “deep discounting” by vacation rental homeowners and agencies.

Looking forward, many speculate the growth will continue well into 2011. Group travel to the Big Island of Hawaii is significantly up in the first quarter, which historically has led to higher single or family traveler airline rates during that timeframe. This displacement in the first quarter will lead people to put off their travel until later dates in the year, which would give the Big Island nice growth in the following quarters in 2011.