It’s not just Hawaii that has become incredibly expensive, and what goes up must go down. As we constantly say, this is a national and global situation. We have reported that here in Hawaii, hotel and vacation rentals have skyrocketed. In Florida, skyrocketing hotel prices have led to a drop in demand. It happened, the Florida version of Hawaii’s controversial HTA, Visit Florida, warned today.
BOH: Various factors come into play in two places that our visitors often compare correctly or incorrectly. Dynamic pricing (constantly monitoring and changing costs based on perceived demand) could now start to put downward pressure on prices both here in Hawaii and in Florida. This can bring at least some welcome relief starting in the late summer and fall season. We expect prices to fall by an average of about 25% or more during this period. This is rapidly changing and we continue to monitor it.
As in Hawaii, the news came just after the record-breaking first quarter of 2022. Much faster than expected, travel demand is a global phenomenon as the economy recovers and return travel demand is unprecedented. It seems that no one now has a thirst for travel.
It was reported that due to the collapse in demand, Florida hotels will need to change prices downwards. This is according to the proposals of the state board of tourism.
As with Hawaii, international arrivals to Florida remain somewhat reduced due to various travel regulations in place. Both Hawaii and Florida are hurt not only by the cost of hotels, but also by the cost of air tickets and other vacation expenses. Florida doesn’t suffer as much from vehicles when compared to car rentals in Hawaii, since it’s a place you can drive to, not one you can fly to. Unlike Hawaii, many visitors to Florida come with their own vehicles.
The Visit Florida Board of Tourism has been quoted as saying it sounds exactly like Hawaii. “For the last couple of years, we haven’t been able to charge high enough prices.” But now “the strongest correlation [is] between rising room prices and falling demand… Inflation [is] are actually starting to catch up with us in most markets.”
Also, as in Hawaii, high room rates continue to translate into increased overall revenue, but this could quickly stop in both states.
More information on these related posts:
While hotels in Hawaii soar to the highest levels in the US, what can visitors do
Holiday prices in Hawaii | Hotels and vacation rentals in Hawaii are skyrocketing
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Paying to Visit Hawaii: Perception, Value, and a Blatant Example