April Room, Occupancy Rates Rise

Aloha Kakou:

Maui's hotel occupancy numbers showed a modest increase of 2.5% this April compared to last year. Hotel occupancy was 69.2% overall during the month.

Maui's ADR rose $30, from $229 to $259 during the same period.

http://mauinews.com/page/content.detail/id/550403/April-occupancy-numbers-up-to-69-.html?nav=10

Bait And Switch?

Aloha Kakou:

A lawsuit filed in US Federal Court this week alleges that a hotel's resort fee is a "hidden" charge and essentially amounts to a bait and switch scheme.

Fortunately, the resort fee model is not one to which we subscribe here at the Outrigger Maui Eldorado.

http://www.hotelsmag.com/MembersOnly/webNews/details.aspx?item=23698

Hotel Defects Negatively Affect RevPAR

Aloha Kakou:

I know you're tired of hearing me carp on upgrades, but I've found a study that reinforces the notion that the fewer defects found in a lodging property, the higher the revenue. Note that this study takes into account the entire property and not individual units. Also note that, while the study does have some age, I would expect that today's more demanding guest would make for an even greater RevPAR loss.

Here are some of the salient parts of the article:

Financial performance is affected by higher quality in two ways: (1) firms can charge a premium price and (2) firms can increase market share. Although quality does not always have a direct impact on return on investment (ROI), the increase on market share may indirectly influence ROI.

Having even a single defect seemed to cost the hotels money. For example, in February 1990, hotels with at least one defect in the exterior had a RevPAR of $3.12 less than hotels with no defects in the exterior. Hotels with at least one defect in the guest room had a RevPAR of $2.01 less than hotels with no defects in the guest room. Hotels with at least one defect in the guest bath had a RevPAR of $1.32 less than hotels with no defects in the guest bath.

The RevPAR for the deficient hotels was consistently lower than that of the not-deficient hotels for all six test periods.

http://www.entrepreneur.com/tradejournals/article/79382266.html

Maui Hotel Revenues Up But Not Like Before

Aloha Kakou:

Maui hotels have seen an increase in revenues in 2010 compared to last year. That's the good news. The bad news is that revenues are still off by 20% compared to 2007.

For the first nine months of 2010, occupancy is 68.9%, compared to 59.9% in 2009.

From the western US, the number of available airline seats has increased 12.8%. The number of available air seats from Canada has increased by 39% for the first nine months of 2010.

http://mauinews.com/page/content.detail/id/542947/Hotel-industry-continues-to-recover.html?nav=10

Condo-style Cleaning Catching On

Aloha Kakou:

More hotels are offering guests options when it comes to daily housekeeping service.

While initially implemented to assist hotels with the labor costs associated with housekeeping, limited service does have it's supporters. And hotels are finding limited housekeeping service is a great way to reduce electricity and water consumption.

http://www.usatoday.com/travel/hotels/2010-06-23-1Ahotelcleaning23_ST_N.htm#uslPageReturn

RevPAR Up, Profits Down In 2010

Aloha Kakou:

PKF Hospitality Research is predicting a 1.7% increase in revenue per available room (RevPAR) but a decrease in profits of 1.4% for US hotels in 2010.

The combination of decline in rates and increase in expenses such as housekeeping labor, laundry and guest supplies are the basis for the prediction of the decline in profit.

http://www.travelweekly.com/article3_ektid215068.aspx

No Resort Fees Here

Aloha Kakou:

The Outrigger Maui Eldorado doesn't charge a resort fee, a housekeeping surcharge or a fee to use the internet. Apparently, we're a dying breed!

http://www.hotel-online.com/News/PR2010_2nd/May10_HotelExtraFees.html

Exterior Corridors Are In, Says Survey

Aloha Kakou:

Guests actively seek out hotels that have exterior corridors, according to a survey commissioned and published by Red Roof Inns (a mainland chain that has, surprise!, exterior corridors.

While some of the survey information is compelling, I'm grateful that we don't have motorcyclists who stay here with their own bikes!

http://www.hotelsmag.com/article/456159-Red_Roof_Says_Its_Guests_Prefer_Exterior_Corridors.php?nid=3457&source=link&rid=14377667

May I Please Have Juse A Few More Shampoos?

Aloha Kakou:

Christopher Elliott, one of my favorite travel columnists, today published an article asking what is a hotel amenity and what isn't. I think we can all pretty much agree that any toiletry item like soap or shampoo, once opened, is fair game. But what about multiples of those? And how many is too many? Are bibles fair game? Pens? Towels? Dishes? Pillows? Take a look at his article and the comments - it's interesting to see what people think is fair game!

For the record, small things that have the hotel name like pens, pads and card keys are, to my mind, acceptable items to take as souveniers (it's a good thing we don't have bathrobes with our logo!).

http://www.msnbc.msn.com/id/35840385/ns/travel-tips/

Aloha Kakou:

While most higher-end Maui properties are appealing to lower-end travellers strictly with rate, the article linked below discusses other ways that luxury properties are attempting to muscle in on business normally associated with lower ranked hotels.

As I have mentioned in the past, this strategy is somewhat of a concern for us at the Outrigger Maui Eldorado as hotels and oceanfront properties reduce their rates into our usual territory. That means that we either need to lower our rates (which we've done), offer some kind of competitive deal (like we're doing with the golf and spa deals and the restaurant discounts), or improve the property and units so the Outrigger Maui Eldorado is seen as a good value as compared to our now new luxury competitors.

http://www.thestreet.com/story/10625691/1/high-end-hotels-lure-huddled-masses.html

Eight Hundred Pound Gorilla

Aloha Kakou:

You may be interested in reading about this new tack being taken by Expedia. It would seem that Expedia is trying to exact promises from hotel companies for them to remain on Expedia's web site. Those promises include exclusive rates, last room availability and penalties to properties who do not use Expedia 100% of the time. The latest player in this saga, Choice Hotels, would not agree to Expedia's egregious terms and thus Expedia has deleted all of Choices properties from their web site.

How this will play out in the future is any one's guess but I can advise you that Outrigger Hotels has had a long history of rate transparency. Each one of our wholesale partners receives the same net rates. Our retail rates are the same, no matter which channel guests book through. Rate parity and transparency is the only way to go to be fair to the guests and to all of the wholesalers. How those wholesale partners choose to make their money is then up to them.

http://www.hotelsmag.com/article/CA6702525.html?nid=3457&rid=14377667

Hawaii Hotel Performance

Aloha Kakou:

Check out this article in today's Wall Street Journal regarding the current state of the Hawaii hotel industry.

The graph at the top of this entry tell the whole story about Hawaii's occupancy over the last four years.

"The operating numbers have cratered, the underlying fundamentals aren't very good, and you have a whole bunch of problem loans," says David Carey, president and chief executive of Outrigger Enterprises Group, which owns 30 Hawaiian hotels, none in foreclosure.

http://online.wsj.com/article/SB10001424052748703790404574469120027986600.html

Interview With Bill Marriott

Aloha Kakou:

Please take a look at this short interview with Bill Marriott, the chief of Marriott International.

Please note what he says about reinvestment in properties and about hotel lobbies as "great rooms".

http://www.hotelsmag.com/articleXML/LN1051182745.html?nid=3457&rid=14377667

Long Road To Pricing Recovery

Aloha Kakou:

The value conscious traveller, combined with the now-prevalent deep discounts in the lodging sector, may mean that pricing recovery may not be attained until 2011, or later.

http://www.azcentral.com/business/articles/2009/09/27/20090927biz-hoteloutlook0927side.html

The Bathroom Experience

Aloha Kakou:

When the Outrigger Maui Eldorado was built, bathrooms were for bathing, nothing more. Bathing was a necessary function, best performed quickly, based on the bathroom accouterments initially furnished with the property.

Now, hotel bathrooms are part of the guest experience. Once again, guests are looking for an amenity that is equal to or exceeds what they have at home. And, while comfortable may be the watchword in home bathrooms, hotel bathrooms are trending toward the modern.

http://lodgingmagazine.com/ME2/dirmod.asp?sid=&nm=&type=Publishing&mod=Publications%3A%3AArticle&mid=8F3A7027421841978F18BE895F87F791&tier=4&id=29310EE5EDFB40A4BD874B4B10B0A633