Hawaii vacation rental demand lower than before pandemic

Hawaii vacation rentals in November saw lower supply, demand and occupancy than they did before the pandemic, but people paid more for them, according to a recent report from the state Department of Business, Economic Development and Tourism.

Compared with 2020, though, vacation rentals reported increased supply, demand and average daily rates, but lower occupancy rates, the report said.

The total supply of
vacation rentals statewide increased in November compared with the year-­earlier period, though it’s still down almost a third from what it was before the pandemic.

The supply was at 639,300 “unit nights,” a 16.7% gain from 2021, but down 30.4% from 2019, the report said.

But not every available rental was wanted — in fact, far from it: Monthly
demand was a little more than half of the supply, clocking in at 365,000 unit nights. That was down 42.1% from pre-pandemic 2019, but up 6.1% from 2021.

The result: an “average monthly unit occupancy” of 57.1% for November. That was down 11.5% from 2019, and down 5.7% from 2021. The average daily rate people paid for vacation rentals was $293. That was up 38.7% more than before the pandemic and 18% more than 2021.

Hotels appeared to be a little more in demand, with a 70.5% occupancy rate. Visitors, in turn, paid more on average each day: $345.

“It is important to note that unlike hotels, units in vacation rentals are not necessarily available year-round or each day of the month and often accommodate a larger number of guests than traditional rooms,” the report said. DBEDT defines a vacation rental as “the use of a rental house, condominium unit, private room in private home, or shared room/space in private home.” The report doesn’t differentiate between permitted or unpermitted rentals.

Maui County had the largest supply among the counties, at 198,300 available unit nights. That was down 34.8% from 2019; up 4.8% from 2021. Demand was at 126,800 unit nights. That was down 45.1% from 2019; up 3.4% from 2021. The occupancy rate was 64%. That was down 11.9% from 2019; down 0.9% from 2021. People paid, on average, $356 each day. That was up 45.2% from 2019; up 24.8% from 2021.

Hotels in Maui County, by contrast, had an average daily rate of $538 and an occupancy rate of 65.2%.

Oahu’s vacation rentals had 182,100 available units.That was down 27.9% from 2019, up 15.1% from 2021. The demand was 104,300 unit nights. That was down 38.8% from 2019, up 15.1% from 2021. The occupancy was 57.3%. That was down 10.2% from 2019; no change from 2021. The average daily rate was $224. That was up 28.2% from 2019; up 16.8% from 2021.

Oahu hotels’ average daily rate was $259, with a 71.9% occupancy rate.

Hawaii island’s supply was at 162,000 available unit nights. That was down 27.7% from 2019; up 33.6% from 2021. Demand was 82,500 unit nights. That was down 38.8% from 2019; up 0.8% from 2021. Occupancy was 50.9%. That was down 9.3% from 2019; down 16.6% from 2021. The average daily rate was $235. That was up 40.8% from 2019; up 13.5% from 2021.

Hawaii island hotels reported $372 as the average daily rate, with a 71.4% occupancy.

Kauai’s vacation rentals had the least supply in November, at 96,900 unit nights. That was down 30.1% from 2019; up 22.8% from 2021. The demand was 51,400 unit nights. That was down 45.5% from 2019; up 5.4% from 2021. Occupancy was 53.1%. That was down 15% from 2019; down 8.8% from 2021. The average daily rate was $370. That was up 43.7% from 2019; up 12.4% from 2021.

Kauai hotels had an
average daily rate of
$364 and an occupancy rate of 75.1%.

The report included data on 29,561 units, or about 50,396 bedrooms, the report said. That is about 29% of the estimated total vacation rental properties in Hawaii, the report said.

DBEDT produced this report with data compiled by Transparent Intelligence Inc., which analyzed listings on Airbnb, Booking.com, HomeAway and TripAdvisor. Units in Hawaii Tourism Authority’s Hawaii Hotel Performance Report and DBEDT’s Hawaii Timeshare Quarterly Report were not included in the analysis.