November 2024 Hawaii Vacation Rental Performance

Overview of Hawaii Vacation Rentals in November 2024

Hawaii's vacation rental market experienced a mix of growth and challenges in November 2024. Statewide, vacation rentals reported an increase in supply and average daily rates (ADR), but a decline in demand and occupancy rates compared to the same period in 2023 and pre-pandemic levels in 2019.

Key statewide statistics for November 2024:

• Supply: 803,100 unit nights, up 1.9% from 2023 but down 12.6% from 2019.
• Demand: 388,800 unit nights, a decrease of 2.4% compared to 2023 and 38.3% from 2019.
• Occupancy Rate: 48.4%, a drop of 2.1 percentage points from 2023 and 20.2 points from 2019.
• Average Daily Rate (ADR): $313, up 6.5% from 2023 and 48.3% from 2019.

Hotels outperformed vacation rentals in occupancy (69.2%) and ADR ($335) in November 2024.

Island-Specific Performance Highlights

Maui County

Maui County, known for its stunning beaches and luxury accommodations, saw the largest vacation rental supply among Hawaii's counties in November 2024. Despite a slight decline compared to pre-pandemic levels, the island maintained competitive pricing and steady demand growth year-over-year.

• Supply: 239,800 unit nights (+1.9% from 2023, -21.1% from 2019).
• Demand: 128,000 unit nights (+4.2% from 2023, -44.5% from 2019).
• Occupancy Rate: 53.4%, slightly up from 2023 but down 22.5 points from 2019.
• ADR: $371, a 3% increase from 2023 and a 51.2% rise from 2019.

Popular areas like Lahaina, Kā‘anapali, and Wailea contributed significantly to the overall performance, with higher ADRs in premium locations.

O‘ahu

O‘ahu’s vacation rental market faced some headwinds, with slight reductions in supply and demand compared to 2023. The island’s close competition with hotels in terms of ADR underscores its popularity among tourists seeking diverse accommodation options.

• Supply: 222,900 unit nights (-0.2% from 2023, -11.7% from 2019).
• Demand: 112,300 unit nights (-5% from 2023, -34.1% from 2019).
• Occupancy Rate: 50.4%, down 2.6 points from 2023 and 17.1 points from 2019.
• ADR: $260, an increase of 9.5% from 2023 and 49.4% from 2019.

Waikīkī remained a key driver for O‘ahu’s performance, balancing a slight reduction in occupancy with steady ADRs.

Island of Hawaii

The Big Island showcased resilience with modest supply growth but faced challenges in occupancy. Rising ADRs suggest a focus on attracting high-value travelers while contending with decreased demand.

• Supply: 203,500 unit nights (+1% from 2023, -9.1% from 2019).
• Demand: 85,900 unit nights (-9.7% from 2023, -36.3% from 2019).
• Occupancy Rate: 42.2%, down 5 points from 2023 and 18 points from 2019.
• ADR: $256, a 10.5% increase from 2023 and a 53.1% rise from 2019.

Areas like Kona and Hilo saw divergent trends, with Kona reporting higher ADR growth and Hilo experiencing more modest pricing improvements.

Kaua‘i

Kaua‘i’s vacation rental market demonstrated notable resilience with the highest supply growth among all islands. Despite a slight decline in occupancy, ADRs remained stable, indicating robust demand for the island’s unique charm.

• Supply: 136,900 unit nights (+6.6% from 2023, -1.3% from 2019).
• Demand: 62,500 unit nights (+0.8% from 2023, -33.8% from 2019).
• Occupancy Rate: 45.6%, down 2.6 points from 2023 and 22.5 points from 2019.
• ADR: $368, a slight increase of 0.6% from 2023 and 43.3% from 2019.

Trends and Insights

1. ADRs Continue to Climb:
   
   
   • Across all islands, ADRs have experienced significant growth compared to pre-pandemic levels, driven by strong demand for high-quality and premium accommodations.
2. Demand Shifts:
   
   
   • While demand has softened overall, Maui County’s year-over-year growth signals the potential for recovery in select markets.
3. Occupancy Gaps:
   
   
   • The widening gap between hotel and vacation rental occupancy rates highlights the need for vacation rental operators to adopt innovative strategies to attract more bookings.
4. Localized Performance Variations:
   
   
   • Differences in performance across islands suggest opportunities for targeted marketing and tailored experiences to meet the unique preferences of visitors to each island.

Recommendations for Vacation Rental Stakeholders

To navigate the evolving market landscape, vacation rental stakeholders should consider:

• Optimized Pricing Strategies: Employ dynamic pricing tools to balance competitive ADRs with improved occupancy rates.
• Enhanced Guest Experiences: Focus on amenities, personalized services, and value-added offerings to attract discerning travelers.
• Data-Driven Marketing: Leverage analytics to identify high-potential markets and tailor campaigns to target specific demographics.
• Regulatory Compliance: Stay updated on local regulations to ensure long-term sustainability and legal operation.

The full November 2024 Hawaii Vacation Rental Performance Report is available for further insights and detailed statistics on the DBEDT website

To see the full vacation rental report for November, click here.

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