What Hotels Should Know Heading Into Peak Season

As we look back at the Q1 Hawai‘i travel trends, the market reflects stable demand, strong pricing, and continued shifts in how travelers plan their trips.

While final March data hasn’t been released, January and February performance provide some great insights.

For hotels, demand is steady, but competition is increasing. How and when you reach travelers is becoming just as important as price and availability.

January/February 2026

• Visitor arrivals: ~1.5M+ (January and February combined, slightly above 2025 levels)
• Visitor spending: ~$3.7B+ (strong year-over-year growth)
• ADR (statewide): ~$380 to $390 (stable)
• Occupancy: ~75% to 77%
• RevPAR: ~$285 to $295 (modest growth)
• Primary market: ~70%+ U.S. mainland travelers

Sources: Hawaii Tourism Authority, Department of Business, Economic Development and Tourism, CoStar Group

Demand Remains Stable, Led by U.S. Travelers

U.S. travelers continue to drive the majority of demand.

Q1 demand has remained consistent with late 2025, with moderate growth rather than major swings.

• January and February arrivals exceeded 1.5 million visitors
• February reached ~787,000 visitors, up about 3 to 4 percent year over year

U.S. travelers continue to dominate:

• U.S. West and East make up roughly 70 to 75 percent of arrivals
• East Coast demand is growing slightly faster

International markets are recovering, but still below pre-2020 levels. Canada has shown some softness, though its overall impact on demand remains limited.

What this means: Demand is steady, but not surging. Hotels are competing more for share, especially within U.S. markets.

Rate Strength Continues Across Q1

Hotels are holding price instead of discounting.

Hotel performance shows a stable and disciplined pricing environment.

• ADR has held in the $380 to $390 range
• Occupancy has stayed in the mid-70 percent range
• RevPAR has increased slightly year over year

Data from CoStar Group shows that most properties are maintaining rate rather than lowering prices to drive occupancy.

What this means: Hotels can continue to hold rate, but need to clearly communicate value to stay competitive.

Traveler Spend Remains Strong

Travelers are spending more per trip.

Q1 spending trends show that visitors are still investing in higher-value trips.

• Total spend exceeded $3.7 billion across January and February
• Daily spend averages:
  • ~$280+ (U.S. West)
  • ~$310+ (U.S. East)

Spending is growing faster than arrivals, which points to more intentional, experience-driven travel.

What this means: Hotels have an opportunity to sell more than just rooms. Experiences, upgrades, and packages are becoming more important.

Planning Behavior Is Shifting Earlier

Travelers are making decisions before choosing where to stay.

Travelers are planning trips differently than before.

More travelers are:

• Choosing experiences first
• Spending more time in the inspiration phase
• Building itineraries before selecting accommodations
• Travelers are researching trips earlier

What this means: Hotels need to reach travelers earlier in the planning process, not just at the point of booking.

Industry Updates Shaping the Market

Recent developments are reinforcing these trends.

Alongside Q1 performance, several recent updates are shaping how demand is expected to evolve.

Expanded Airlift from Key U.S. Markets

More direct flights are supporting West Coast demand.

Alaska Airlines has introduced a new direct route between Burbank and Honolulu. Southwest Airlines is adding new service from Ontario and Burbank to Honolulu in 2026.

Why it matters: More direct routes make travel easier and reinforce the strength of U.S. West Coast demand.

Continued Investment in Hawaiʻi’s Hotel Pipeline

New development signals long-term confidence.

Hilton has announced Hale Hōkūala Kauaʻi, a 210-room property expected to open in fall 2026 as part of its Curio Collection.

Why it matters: Ongoing investment reflects confidence in Hawaiʻi and continued demand for experience-driven stays.

Increased Transient Accommodations Tax (TAT)

Higher taxes may impact traveler price sensitivity.

Hawaiʻi has increased the Transient Accommodations Tax to support environmental and climate initiatives.

Why it matters: Higher costs can affect traveler perception of value, making it more important for hotels to clearly communicate what guests are getting.

Short-Term Impact from Kona Storms

Perception can influence bookings.

Severe Kona storms in Q1 caused disruption across parts of the islands, leading to cancellations and a temporary decline in bookings driven largely by traveler perception.

Why it matters: Short-term demand can shift based on perception, even when conditions improve quickly.

Ongoing Investment in the Luxury Segment

Luxury travel continues to evolve toward experiences.

A proposed expansion tied to Sensei Lānaʻi, A Four Seasons Resort includes new villas and upgraded amenities.

Why it matters:Luxury travel continues to move toward wellness, experiences, and high-touch offerings.

What This Means for Hotels

As Hawaiʻi moves into peak travel season:

• Demand is stable, but competition is increasing
• Pricing remains strong across most segments
• U.S. travelers continue to drive bookings
• Travelers are making decisions earlier in the planning process

Key takeaway: Hotels that reach travelers earlier and clearly communicate value will be better positioned to capture demand.

What Q2 Has in Store

The outlook for Q2 and summer travel remains positive.

Demand is steady, pricing is holding, and traveler behavior continues to shift toward more intentional and experience-driven trips.

Hotels that focus on:

• Early visibility
• Strong positioning
• Alignment with how travelers plan

will be best positioned to convert bookings in the months ahead.

Put your brand in front of high-intent travelers.

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