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Aloha Kakou:
The following is a excerpt from the Maui News of October 7. It is toward the bottom of the article but, in our situation, is the most important part of the story:
Joseph Toy, who tracks the financial status of Hawaii's lodging industry at Hospitality Advisors, said Hawaii hoteliers learned a hard lesson in the downturn in the early '90s, when they reduced rates to try to keep up occupancies. "It took about seven years for the industry to regain any real ADR (average daily rate) growth," Toy reported.
As a result, hoteliers are keeping their posted rates up and discounting through perks like free meals or spa visits.
He thinks operators are managing their troubles more effectively than they did after the triple whammy of the first Gulf War, Hurricane Iniki and the sharp decline in Japanese tourism in the early '90s.
Productivity has increased, thanks to new management techniques and systems that predict staffing needs better and help improve yield management.
That has only lessened, not forestalled, the effect. Over the summer, room revenue has dropped by $92 million (a million dollars a day).
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