Hawaii hotels offering bizarre deals

Hawaii hotels offering bizarre deals

With tourism in the dumps, Hawaii hotels are offering unprecedented discounts, freebies and other incentives in hopes of drawing tourists to the islands and survive the economic slump.

The wide range of perks include free nights, rental cars, upgraded rooms, 2-for-1 activities, daily breakfast, round of golf, free parking, spa treatments and discounted luau tickets. However, some are getting even more creative, offering everything from the use of a $200,000 Bentley convertible to a Nintendo Wii.

Hawaii prefers using the phrase “adding value.” But truth is, it’s getting down right cheap to stay in Hawaii with only two-thirds of hotel rooms booked.

“It’s the steepest discounts we’ve seen since we started tracking the industry,” said Joseph Toy, president and chief executive of Hospitality Advisors LLC, a hotel-industry consultant. “Now we see a combination of incentives plus direct room discounts, and that we haven’t seen in combination,” showing just how dramatically “demand has fallen.”

Hawaii’s average daily room rate in the first quarter fell 12.4 percent to $189, resulting in a 23.1-percent drop in revenue for hotels statewide, according to Hospitality Advisors. Throw in the incentives,
such as free breakfast, and the deals have never been better.

Every hotel has offers on its Web sites or through travel agencies. The industry is being forced to ante up because fewer tourists are coming to Hawaii. And the ones who do make it here, are spending less.

Toy said the incentives were being offered as early as 2007 and the offers accelerated last year. They are now standard. Hotels prefer incentives instead of discounting the room rate, because once they drop rates, it’s hard to bring them back up.

“The incentives can only work for so long. If the downturn is so steep and dramatic, as it is here, then you start to see the rate go down,” Toy said. The Pacific Beach Hotel in Waikiki has a “Wii Are Family Package,” which includes unlimited use of a Nintendo Wii in the room, free parking, in-room microwave and complimentary popcorn for $149 a night (offer good through Dec. 19).

John Lopianetzky, general manager of the hotel, said with free in-room entertainment, the package is “so affordable that guests will find their money will go further on other activities.”

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