PHOTO: Meet Hawaii will focus on bringing more business travelers to the Islands.

The 2014 Hawaii Tourism Conference, which took place Aug. 28-29 in Honolulu, was a rousing success. Numerous travel professionals attended the annual event to network, share ideas and learn more about the great state of Hawaii. Presentations at the conference ranged from overviews of Hawaii’s financial numbers to developments in accommodation offerings to the marketing plans of the Hawaii Tourism Authority (HTA) moving forward.

Hawaii has had its fair share of successes, but there have also been challenges along the way in the past year. Some tourism numbers dropped as others spiked. As always, Hawaiians and Hawaii-based marketers and travel businesses spread the “aloha” spirit during the conference, staying positive while also taking note of areas in need of improvement. The two-day event was an eye-opener for many who attended, highlighting some interesting news and statistics relevant to today’s world.

So, how is Hawaii doing, and what is changing across the Hawaiian Islands? Here’s a look at some things that were highlighted at the 2014 Hawaiian Tourism Conference (HTC).

State of the Industry

On the opening day of the 2014 HTC, the HTA vice president of tourism brand management, David Uchiyama, highlighted Hawaii’s visitor numbers for the first half of 2014, as well as projections for 2015 and beyond. Total arrivals and occupancy in the State of Hawaii decreased in the first half of 2014 year over year, but visitor expenditures, average daily rate (ADR), revenue per available room (RevPAR) and average daily spending grew.

Hawaii welcomed 4,094,951 visitors during the first half of 2014, a decrease of 0.1 percent year over year. The U.S. West segment continued its slide in June with arrivals by air decreasing by 1.1 percent, the 11th consecutive month of negative growth in the category. However, U.S. West visitor expenditures grew by 3.4 percent year over year.

The Eastern U.S., on the other hand, decreased by 0.2 percent in visitors and 1.2 percent in expenditures year over year in June.

There was also a 0.7 percent dip in occupancy to 77.3 percent during the first half of 2014. The room categories of upscale, upper-midscale, midscale and economy classes all experienced drops, with economy class feeling it the most (down 1.9 percent year over year). Maui was the island hit the hardest, experiencing a 1.7 percent drop in occupancy year over year (Kauai, however, was the bright spot with a 2.3 percent increase in occupancy).

Total visitor expenditures grew by 2.5 percent to $7.4 billion compared to the first half of 2013, aided by an increase in ADR ($228.07 to $240.33) and average daily spending (up 2.3 percent to $196 per person). RevPAR grew by 4.4 percent to $185.78.

ADR grew by 7.1 percent in the Big Island and 6.2 percent in Maui. RevPAR spiked 6.4 percent in Kauai and 5.4 percent in the Big Island.

While Uchiyama did acknowledge that 2014 “has not turned out how we hoped” so far, there are still positives to take away overall. For example, even with a decrease in occupancy, a study by STR found that the Hawaii market still ranks fifth in the U.S. in occupancy (excluding Las Vegas). Hawaii also ranks second in the U.S. in ADR and RevPAR (right behind New York City).

Over the past five years, there has been a 10.7 percent increase in airfares to Hawaii, boosting revenues. There has also been a 13 percent increase in occupancy and a 37 percent spike in hotel rates in the State of Hawaii during that time.

As far as the next few years go, there are some concerns about arrivals across several key regions. Projections in total arrivals for 2014 have been revised and decreased for important cities and countries such as China, Taiwan, Korea and Latin America.

But while Japan’s projected expenditures for 2014 were revised and decreased, it’s worth noting that expenditures for the segment are expected to be higher in 2015 than in 2014. Arrivals are also projected to grow in 2014 and 2015 year over year.

Alternative Accommodations

PHOTO: Visitors are looking beyond the traditional oceanfront hotels to vacation rentals.

How much have accommodations changed over the past decade? Well, according to Matt Curtis, director of government relations for HomeAway.com, traditional accommodations now make up just a 57 percent share of all accommodations in Hawaii. That’s compared to 71 percent in 2000.

On top of that, inquiries at HomeAway.com have increased by 74 percent since 2009, despite listings only increasing by 47 percent during that time.

Several speakers highlighted the changing landscape of accommodations in Hawaii during a presentation entitled “The Growing Popularity of Alternative Accommodations.” The presentation drew a large crowd, with many coming from the hotel industry and concerned about vacation home renters like HomeAway.com taking away business.

But instead of growing fearful of alternative accommodation providers, perhaps those in the travel industry should learn why alternative accommodations are so popular so they can grow themselves. For example, Curtis highlighted how travelers valued the freedom of renting vacation homes. It’s another reason why hotels should be customizing and personalizing experiences for guests.

Curtis also noted how vacation homes were popular among families and the autistic community, because homes not only offered more space, but also allowed for a greater control of the environment. Perhaps hotels in Hawaii should either offer larger rooms or design elements of their properties so that they are both easy to navigate and separate from other areas of the establishment.

L.J. Bates III, the executive director of Kalani Honua (Hawaii’s largest retreat center located in Puna), noted that the bed and breakfast (B&B) market has skyrocketed in recent years on the Big Island. There are now about 200 B&Bs on the Big Island alone.

Bates also added that it’s important to look at the big picture. B&Bs may be taking some business away from hotels, but they are also adding to the accommodations in Hawaii, which could encourage current airline partners to extend service to the Islands, while also encouraging new airlines to join forces with Hawaii.

Moving Forward

Meet Hawaii, one of the HTA’s marketing partners, presented its marketing plan and areas of focus on the second day of the 2014 HTC. Meet Hawaii highlighted several initiatives, targets and programs that encapsulated a variety of trends and opportunities throughout the Islands. Hawaii aims to continue to seek global partners such as Toyota and Herbalife, as well as sister facilities and centers.

Multilevel marketing, environmental stewardship and research opportunities were also highlighted in the presentation (Meet Hawaii plans to work more extensively with the University of Hawaii when researching).

Of course, the explosion of technology across the globe has also been a prime focus for Hawaii. Meet Hawaii not only noted the importance of providing customizable slides of professional photos to clients, but it also announced it would be unveiling a new and improved website in late 2014 or January 2015.

And, despite Hawaii’s traditional label as primarily a leisure destination, Meet Hawaii was quick to point out there were numerous reasons for business travelers to check out the Islands. Not only does Honolulu have the large-scale Hawaii Convention Center, but Hawaii has also been ranked as a top-five U.S. state for business and a top-10 U.S. state for entrepreneurial activity.