AIR CAPACITY TO HAWAII from the Mainland is inching downward compared to the same period in 2006, according to the Hawaii Department of Business, Economic Development & Tourism, with a 4.3% decline in capacity for the July-through-September quarter. Although ATA has increased its seat count to the islands, the trend is lower; ironically, the shrinking Japanese market will see a 1.9% increase in seat count to Hawaii. The reduced capacity affects all islands, with capacity down 1.3%, or about 25,000 seats, with Kahului down 7.1%, Kona down 20.9%, and Hilo and Lihue down about 13%. The figures point to fewer visitors flying through Los Angeles and San Francisco and more flying direct from second tier cities. Capacity will be down 15% from LAX and almost 17% from SFO, affecting flights to all four main islands. Delta is nearly halving its Salt Lake City service and reducing its Cincinnati flights (connecting from European routes) by two thirds; it is also cutting capacity 26% from Atlanta. At the same time, capacity will be up 20% from Sacramento, 25% from Portland, more than a third from both Seattle and Oakland (a hub for ATA), and almost 54% from Denver (a United Airlines hub).
NON-HOTEL ALTERNATIVE ACCOMMODATIONS are being selected by a growing number of Hawaii-bound visitors, according to Hospitality Advisors. Many hotels have seen occupancies dropping thanks to alternatives like timeshares, condominium ownership and cruise ships. Statewide occupancies at the end of June stood at 77.1%, down almost 10 percentage points from 2006. And while hikes in daily room rates have helped keep bottom lines strong for hoteliers, they're generally lower than 2006, with occupancies lower for all islands despite record visitor arrivals, according to Hospitality Advisors. In addition, in May, Hawaii occupancies declined in each of five price-tier categories, ranging from budget to luxury, with revenue per available room falling 2.3%, to $129.