Luxury up, value back in Hawaii.

Hawaii is a place I’ve returned to many times, and each visit feels like rediscovering a beloved friend. This year, something interesting is happening with how people are visiting. It’s like the islands have decided to offer two very different paths. On one side, luxury is absolutely soaring. On the other, the more typical travel options are showing some breathing room, giving us a chance to find real value.

Market Trends Emerge

When you first look at the hotel numbers for the fall, they seem pretty stable. The average nightly price across all the islands stayed around $315, almost the same as last year. Occupancy also saw a tiny bump, reaching 69.7%. But if you look closer, you can see a clearer picture forming. There’s a growing difference between the high-end stays and the everyday ones.

The truly luxurious places are really shining. Their prices went up by about 3%, and more rooms were being filled, with occupancy climbing by over 3 percentage points. This tells me that people with larger budgets are still very keen to visit and will spend generously for those special experiences. Meanwhile, standard hotels and condos, which are the heart of the mid-range market, are telling a different story. Their prices actually softened a little, even though more rooms were getting booked. This is the first noticeable shift we’ve seen in a while, and it could mean more choices and better prices for many.

Island Experiences Vary

Each island is unique, and their hotel trends reflect this. Kauai, for instance, continues to attract visitors with an average nightly rate of nearly $384 and a fantastic occupancy of 74.7%, both improvements from last year. Oahu, though, seems to be a bit quieter. While prices held steady around $259 per night, fewer rooms were booked. Maui County is still finding its footing, with prices easing slightly even as occupancy remains consistent. Hawaii Island, often called the Big Island, has stayed remarkably steady.

These differences are so important when you’re thinking about planning your trip. Kauai’s strong performance suggests that the demand for top-tier experiences there is still very high. But Oahu’s slightly calmer scene might mean more availability and better prices if you’re looking for value next year.

Looking at the whole year so far, the average nightly rate is $364, which hasn’t changed much from last year. Occupancy is holding steady around 74%. Even with these numbers, Hawaii remains one of the pricier destinations in the United States, and its occupancy rates are still lower than many cities on the mainland.

Beyond Hawaii, French Polynesia continues to be the benchmark for luxury, with nightly rates nearing $500. That’s almost double what you’d expect to pay here! I’ll be sharing more about that soon, especially after our recent adventure there gave us a fresh perspective.

Reasons for Market Divergence

From what I’m hearing from people on the ground and observing myself, the desire for a luxury experience in Hawaii is incredibly strong. Travelers who seek luxury are usually less worried about price increases, tend to book their trips much further in advance, and often have specific, cherished resorts or islands in mind.

The middle-tier market tells a different story. Families and regular visitors have dealt with rising costs for years. Everything from places to stay, taxes, various fees, car rentals, to even the food we eat has become more expensive. Many people I’ve spoken with mentioned they either postponed their Hawaii trips, chose a simpler vacation, or decided on other destinations entirely. Now, they’re only willing to come back if the price makes sense for them.

Our readers haven’t been shy about sharing their thoughts on Hawaii travel this year. One longtime visitor expressed feeling that Hawaii now views tourists as money-makers, ripe for the taking. They mentioned that other destinations have replaced their annual trips because they offer better prices, lower taxes, and fewer fees.

On the other hand, I’ve also heard perspectives from residents and some visitors who believe these fees are essential for protecting Hawaii’s beautiful natural and historical sites. Even so, this same group heavily emphasizes the need for clarity, wanting to know if the money truly supports maintaining hiking trails, keeping beach facilities clean, and repairing roads.

Several other factors are at play. The number of flights to Maui has shifted. The traditional quiet periods, the times just before and after the main holidays, have become longer. And, let’s be honest: when people are watching their grocery bills, a vacation that costs thousands of dollars is often the first thing they reconsider. All these things tend to show up first in Hawaii’s hotel occupancy rates.

Finding Value on the Islands

If you’re open to which island you visit, Kauai’s popularity actually offers two important insights. First, if you have your heart set on specific dates or sought-after properties in Kauai, you’ll need to book well in advance and have a backup plan. However, if you’re open to exploring different islands and your main priority is price, keep a close eye on Oahu. When prices stabilize there, it often signals the beginning of quiet discounts, even if they aren’t advertised as major sales.

If your travel dates have some flexibility, those shoulder periods—the times just before and after major holidays and spring break—are becoming much more appealing than they were even a year ago. While prices at many high-end properties, like the Four Seasons, are holding steady, these same luxury hotels might offer more flexible rates for midweek stays or special packages when they need to fill rooms. This is your moment to ask for an upgrade, some resort credit, or even complimentary breakfast—things that were almost impossible to get last year.

If you can choose between a modest stay and something a bit nicer, the market split becomes very apparent. When four and five-star luxury options remain firm in price, but the mid-range softens, you might actually be able to step up to a higher-category hotel for about the same price you paid last year for less. Some of the best value is often overlooked. For example, renovated rooms or rooms with better views often don’t cost much more, and it’s always worth checking their prices. I’ve noticed this myself across the islands while planning our travels, and I’ll share more about that soon. It’s an simple way to enhance your experience without exceeding your Hawaii budget.

A Neighbor Island Perspective

Kauai’s remarkable performance is truly significant, and living here, we really experience it. An occupancy rate of 74.7% indicates a healthy market. Prices are definitely stronger than last year, especially in popular areas along the North and South Shores. This doesn’t mean there are no deals to be found; it just means you might need to look a bit wider. For instance, weekday stays on the South Shore during the quieter months can sometimes reveal pleasant surprises. On the North Shore, weather and accessibility can still influence things, so if you’re willing to be a bit flexible with your dates, shifting your trip by a day or two can often lead to better outcomes.

On Oahu, softer demand doesn’t necessarily mean easy bargains. What it does create, however, is a wider price difference between the prime oceanfront luxury hotels and the next tier down. If you’re okay without being directly on the beach, this could be the perfect time to upgrade to a better room category while still saving money compared to a coveted beachfront spot.

Maui continues to present a more nuanced situation, with experiences varying greatly from one property to another. Some hotels are performing exceptionally well, while others are working harder, perhaps due to ongoing renovations or changes. Many hotels seem to be focusing on offering value through added perks, like free nights, rather than relying on headline rate reductions or big sales. If you’re set on visiting Maui, plan your trip very early or very last minute. Remember, the room rate is just one part of the total picture. Rental cars, resort fees, taxes, and parking are other significant expenses that can either make an attractive room rate a genuinely good deal or an unexpectedly costly one when everything is added up.

Voices from Our Community

One reader recently shared their experience, mentioning they booked a five-night stay in a small condo on Kauai, and the fees alone amounted to over seven hundred dollars. Despite this, the traveler still visited and still loves the islands, but noted they would likely visit less often in the future. Another reader felt that the message from Hawaii now seems to be “pay up or get out,” and they plan to take their family to the mainland for their next vacation.

On the other hand, a local perspective reminded everyone that many states charge for park entry, suggesting that value is truly in the eye of each visitor. I’ve also heard from visitors who don’t mind paying more, as long as they can clearly see tangible improvements in things like clean restrooms, more lifeguards on duty, and well-maintained hiking trails.

This blend of viewpoints reflects the reality as we approach the end of the year. It also explains why a split market makes so much sense. At the luxury end, those travelers are still arriving and spending generously. In the middle, however, guests have started setting their own boundaries, scrutinizing the value they receive much more closely. This latest report from the state aligns perfectly with what our readers have been consistently telling us for months.

Planning Your 2026 Getaway

I anticipate this two-tiered market will continue, likely into early 2026, or even longer. If overall demand slows down, it’s the mid-tier hotels that will feel the impact first. This is where you should keep an eye out for more package deals, loyalty program promotions that actually offer real value, and subtle discounts of all kinds, especially during the quieter seasons. However, if demand remains strong, expect luxury accommodations to hold their ground, continuing to reward travelers who book early and those who have flexibility with their travel dates.

Always plan your trip with the total cost in mind. The room rate is just one item on a long list. Resort fees, parking, taxes, meals, and your rental car can significantly increase the total, often to an amount much higher than most people expect. These additional costs also seem to vary much more now than they did even a few years ago. What appears to be a cheaper room can actually end up being more expensive once you add everything else. So, always price out your entire itinerary, not just the headline room rate.

Finally, decide what’s most important to you. Determine what matters most to you, and then allocate your 2026 budget accordingly. If a luxurious resort experience is your top priority, invest in the hotel and keep your dining simple. If exploring the islands is more important to you, choose a comfortable room in a good location and spend your money on experiences instead. Hawaii’s split market now truly benefits travelers who plan around overall value rather than focusing solely on price.

My Observations.

I’m currently seeing two very distinct types of Hawaii emerging in the hotel pricing landscape. One is the high-end market, which continues to operate at its own impressive pace. The other is the more mainstream, middle-tier market, which is finally leveling off after years of relentless cost increases. This isn’t bad news; it’s a clear signal.

Savvy travelers who pay attention can either save money, significantly enhance their trip, or even achieve both. Residents who have experienced the peak tourism seasons might also find some relief as mid-tier demand hopefully spreads more evenly throughout the year, aligning with Hawaii’s long-standing goals.

Have you noticed this hotel market split when booking your Hawaii trips? Are you finding better deals on Oahu, or are you saving up for a luxurious Kauai vacation? I’d love to hear what strategies are working for you, or what might have led you to explore destinations beyond Hawaii. Please share your thoughts in the comments below!

Frequently Asked Questions

What is causing the split in Hawaii’s hotel market?
The split is driven by strong demand for luxury travel, where visitors often prioritize experience over cost and book far in advance. This contrasts with the mid-range market, where travelers are more price-sensitive due to years of increasing costs for accommodations, fees, and other travel expenses. They are seeking better value or considering alternative destinations.

What does this mean for planning a 2026 Hawaii trip?
For 2026, expect this two-track market to persist. Luxury accommodations will likely remain in high demand, rewarding early bookings. The mid-tier segment may offer more value through promotions or discounts, particularly during off-peak times. Crucially, travelers should plan their entire budget, factoring in all expenses beyond the room rate.

Which islands are showing the most value or luxury?
Kauai continues to attract luxury travelers, reflected in its high rates and occupancy. Oahu is showing signs of a more relaxed demand, potentially offering better availability and pricing for those seeking value. Maui’s market is varied, with value often found in package deals. Hawaii Island has remained relatively stable.

How can travelers find deals despite high prices?
Travelers can find value by being flexible with island choice, targeting the shoulder seasons, and looking for less-advertised discounts or package inclusions. Consider rooms with good views or recently renovated spaces, which often represent better value than premium beachfront locations.

Why are additional fees and taxes a concern for travelers?
Many travelers find that resort fees, parking charges, taxes, and other add-ons significantly increase the total cost of their trip, especially in the mid-range segment. There is a strong desire for more transparency regarding how these fees contribute to the upkeep of the islands’ resources.

Is Hawaii still an expensive destination compared to others?
Yes, Hawaii remains one of the most expensive destinations in the U.S., with average nightly rates around $364 year-to-date. While its occupancy rates are lower than some major mainland cities, it is generally less expensive than destinations like French Polynesia, where rates can approach $500 per night.

Ready to plan your perfect Hawaiian escape?

Now that you have a clearer understanding of Hawaii’s evolving travel market, you can use this insight to plan your ideal 2026 trip. Whether your dream is a lavish, indulgent getaway or a more budget-conscious adventure, the opportunities are there. Start exploring your options and think about what truly matters for your vacation. Are you dreaming of a specific island, a grand resort experience, or diving deep into Hawaii’s natural beauty? Plan with intention, calculate your entire trip’s cost, and let the current market trends guide you toward an unforgettable journey. Don’t just book a trip; create an experience that perfectly matches your desires and your budget. Your ideal Hawaii vacation is within reach – make an informed choice!

References

Hawaii Tourism Authority Monthly Performance Reports