2010 Hawaii Vacation Rental Market Analysis
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.