Written by Hawaii Travel News / October 7, 2025

Origin post: https://beatofhawaii.com/visitors-push-back-as-hawaii-faces-new-anti-luxury-shift/
Article: Luxury travel isn’t dead. It’s being redefined. And Hawaii, once the gold standard for high-end vacations, now sits squarely in the middle of the shift. National research this month confirms what readers and editors have been saying here for more than a year: luxury is changing. The new term is “anti luxury,” and nearly half of American travelers now say that’s the kind of trip they want.

According to The State of the American Traveler study, 43 percent of Americans find anti-luxury travel appealing. And to some degree at least, Beat of Hawaii editors count ourselves among them. That number jumps to 59 percent among Gen Z and 53 percent among Millennials. But here’s the twist: 65 percent of Gen Z travelers still value upscale touches. They just want them to feel authentic. Meaning beats marble, and value beats veneer.
If you’ve ever felt like Hawaii’s travel experience has become more about fees than feelings, you’re not alone. Across hundreds of reader comments, the message is consistent. Visitors still want Hawaii, but they want it to feel worth it again.

Hawaii’s problem is that it has been chasing the opposite audience.

While 52 percent of travelers earning under $50,000 a year say they’re drawn to anti-luxury travel, only 37 percent of those earning over $200,000 agree. Hawaii has been placing a heavy bet on the second group.

Anti-luxury isn’t about roughing it. It’s about travelers seeking substance over status. They still want comfort, but they want it to feel earned and authentic. Think couples skipping a $1,000 resort night to splurge on a local guide or a family choosing meaningful days over showy nights.

When travelers say Hawaii feels too transactional, they’re not rejecting quality. They are rejecting the sense that quality has been replaced by markup. Readers have been describing this shift for months in stories like Hawaii’s new fees cross the line and the vanishing middle class of Hawaii travel.

The income gap Hawaii can’t ignore.

The study revealed a clear gap between what Hawaii markets and what most travelers actually want. Lower-income travelers were the most interested in anti-luxury experiences, while the high earners Hawaii targets were least interested. The islands’ current “premium visitor” strategy chases the group least likely to value what Hawaii truly offers: natural beauty, connection, and culture.

The visitors who built Hawaii’s tourism base are being priced out, even as they remain the ones most loyal to the experience Hawaii once promised. The math is brutal: Hawaii markets to the 37 percent who don’t want what it offers, while alienating the 52 percent who do.

This mismatch has been building across stories, such as Hawaii visitors loving the islands but hating what travel here has become.

Wellness travel: Hawaii’s missed opportunity.

A study linked to by Future Partners found that 65 percent of travelers consider wellness important in planning trips, and 43 percent actively seek experiences that support their physical, mental, or spiritual health. This is especially true for Millennials and women, the same groups Hawaii’s visitor mix relies on most.

Hawaii should own wellness travel. Sunrise swims, hikes through native forests, local produce stands, and quiet moments are built into daily life here. Yet, most hotels still treat wellness as a spa upcharge, rather than as a core experience. Anti-luxury travelers want wellness baked in, not bolted on.

The hotels that figure this out first, the ones that swap $200 spa treatments for complimentary sunrise yoga or guided trail access, will own the next decade of Hawaii travel.

We first explored Hawaii’s evolving definition of luxury in Hawaii Is Redefining Luxury Why Authentic Travel Is The New Trend, and this new data shows how that evolution is accelerating nationwide.

The comfort correction in the skies.

Airline loyalty changes and seat shrinkage only deepen this mood. Comfort now resides in the middle, offering premium economy, extra legroom, and transparency about what you get for the price.

These flyers are the same ones that choose smaller brands that feel honest. They’ll still pay for comfort, but they expect transparency and decency in return.

What younger travelers are signaling.

Gen Z and Millennials are leading the charge, with 59 percent and 53 percent, respectively, saying they prefer anti-luxury travel. But here’s the twist: 65 percent of Gen Z still value upscale touches; they want them to feel authentic.

Gen Z travelers are taking fewer trips than any other generation, just 3.3 in the coming year, but they’re the most optimistic about their future finances. Sixty-three percent expect to be better off next year, compared with 32 percent of Boomers. They’re not broke. They’re selective.

When Gen Z and younger Millennials come to Hawaii, they want real experiences that fit their values. They are allergic to pretense. They share their disappointments online, but they also reward authenticity when they find it.

How Hawaii can win back its visitors.

Anti-luxury travel is a direct reaction to that feeling. It’s a refusal to pay for detachment. Hotels and destinations that prioritize human connection, offer friendly check-in staff, provide thoughtful amenities, and maintain honest communication will win these guests back. It’s not about cheaper rooms. It’s about feeling that the experience and the price align again.

Nearly half of Americans, 47 percent, expect a U.S. recession within six months, up nine points from last year. Even so, 59 percent still plan to prioritize leisure travel in their budgets. That mix of caution and determination defines this moment. People will still travel, but they’ll be ruthless about value.

For Hawaii, that means the visitors are not gone. They’re simply choosing differently. They want transparency, respect, and experiences that feel like the islands they remember.

What Hawaii can do next.

If Hawaii tourism wants to thrive in the anti-luxury era, it needs to realign with what travelers are saying. Stop marketing aspiration and start marketing truth. Invest in the service experience, not just the structures. Simplify the costs and clarify the fees. Let visitors feel they’re part of something meaningful, not just a revenue target.

Small changes make a difference. Authentic greetings. Flexible cancellation policies. Honest communication about what’s open, what’s crowded, and what’s truly local. These are the new luxuries, and they cost almost nothing.

What travelers can do to make Hawaii worth it again.

If you’re planning a trip, focus on the version of Hawaii that still feels genuine. Visit during shoulder seasons, such as April through June or September through November. Book mid-tier accommodations that prioritize service over branding. Use points where you can, but spend on local experiences that remind you why Hawaii mattered in the first place.

Our tips found in How to visit Hawaii for less in 2025 and Ten ways to save money on Hawaii car rentals can help make it happen.

We’ve found ourselves shifting between both worlds on our own travels. On a recent South Pacific trip, in Rarotonga, we stayed in a simple beachfront Airbnb that was clean, quiet, and inexpensive, perfect for slowing down.

A few days later on Aitutaki, we splurged on what passes there as a five-star resort. It wasn’t perfect, but it had heart.

Then in Papeete, comfort mattered more, so we chose a larger, well-run resort before ending the trip in Bora Bora at a small lagoon-front rental costing a fraction of the luxury-brand over-water villas nearby. Each stop delivered something different, and not one of them felt like a downgrade.

That, in the end, is the point. Anti-luxury isn’t about rejecting the high end. It’s about choosing when it actually adds meaning, and when a clean room, a friendly face, and a view that stops you mid-sentence are worth far more than another champagne check-in. (Beat of Hawaii editors).

The bigger picture.

Anti-luxury isn’t a rejection of Hawaii. It’s a reset of expectations. It’s a sign that travelers want their trips to feel purposeful again. Hawaii, with all its natural and cultural gifts, should be the model for that. But only if it listens.

At BRnX Travel, we understand this shift better than anyone — because we’re built on it.
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As guests move away from flashy brands and toward verified experiences, owners who meet our standards will lead this new era.
They’re not selling “luxury.”
They’re selling peace of mind, credibility, and meaning — the new definition of luxury travel.

BRnX Verified. BRnX Accredited. BRnX Trusted.
That’s how you meet the new traveler where they are.

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By Snejana Farberov,Provided By

Sep 1, 2025
With Labor Day just around the corner, many sunseekers are likely to be racing to book short-term rentals. That’s because, judging by a recent spike in demand for vacation rentals in coastal areas of the U.S., anticipation is high that travelers will be seeking one last summer getaway. July demand for short-term rentals climbed to a record 26.4 million nights, up 3.6% compared with a year ago, according to the latest available figures from AirDNA, a firm that compiles and analyzes Vrbo and Airbnb data.

Even economic uncertainty, weak employment numbers, and persistent affordability challenges could not stop Americans from indulging in travel in July-that despite the average daily rate climbing nearly 6.9% year over year, to just over $351. 

“Summer vacation is usually like the last thing someone’s willing to give up,” AirDNA Chief Economist Jamie Lane tells Realtor.com®. “It’s going to take a lot to cause people to pull back on those type of vacations.”

And Americans not only traveled but also chose larger, more expensive rental properties.
Short-term rentals in coastal areas saw the biggest revenue growth in July, the height of the beach season.

“Since February, demand for six-plus bedroom properties has grown more than 13 times faster than for single-bedroom listings, and about four times faster than for two-bedroom homes,” says Bram Gallagher, AirDNA’s director of economics and forecasting.

However, occupancy averaged 67.4%, down 1.1% from a year ago, mostly because of an uptick in listings. But total nights booked rose 0.7% year over year. Year-to-date occupancy remains ahead of 2024 levels, and the latest pacing data points to a potentially stronger fourth quarter.

Foreign tourists turn their backs on U.S.

Perhaps unsurprisingly, given the heightened geopolitical tensions fueled by President Donald Trump’s trade war with partner nations, international demand for short-term rentals plunged 16% from a year ago, led by a sharp decline in Canadian stays.

According to AirDNA data, demand for short-term rentals in the U.S. among Canadian travelers dropped more that 48% from the same period in 2024.

This is consistent with a trend of Canadian second-home buyers increasingly retreating from U.S. markets in response to Trump’s tariff policies.

Fortunately for AirBnB and Vrbo hosts, Americans filled the gap, driving the majority of summer bookings.

Coastal revenue powerhouses revealed

Realtor.com senior economist Joel Berner says the historic surge in short-term rental (STR) demand is noteworthy because, generally, when the economy is tight, travel is one of the first industries to take a hit, because it heavily relies on discretionary spending.

“STRs do not seem to be feeling this pinch this summer, with the number of nights stayed exceeding last year,” Berner notes.

What’s more, revenue per available rental (RevPAR)-a measure of how well a property generates revenue for each night of booking-edged up 5.7% annually to $237, driven by steeper rates.

Here are the areas where short-term rental revenue growth has been the strongest:

Maui, HI

Maui, HI, saw the biggest short-term rental revenue growth in July compared with a year ago, even as the island continued recovering from the 2023 wildfires.

Coastal areas stood out for registering the highest RevPAR growth in July, led by Maui, HI, which saw a 17.3% year-over-year surge, even as it continued to recover from the deadly 2023 wildfires that ravaged the town of Lahaina on the island’s northwest coast.

“There’s not been much, or any, supply growth in Maui; there’s actually been slight supply decline,” says Lane. “So if the same or more people are coming to the area and there’s fewer listings available, that increases occupancy, and then allows those hosts to charge higher rates as well.”

According to Lane, Maui’s tourism turned a corner this year following the disruption caused by the fires.

“Last year, people were avoiding Maui,” says the economist. “There was still a lot of, I would say, misunderstanding of whether people were allowed to travel to Maui, whether Maui was welcoming tourists or not welcoming tourists. So now that it’s clear that Maui’s more open, we have seen demand come back much more strongly.”

However, Maui’s short-term rental sector is currently in a state of flux, as the Maui County Council is considering a bill to ban short-term rentals in areas dominated by multifamily housing. 

Property owners in condo complexes that will be affected should the legislation pass tell Maui Now they are considering taking legal action to protect their investments. 

Proposed by Maui Mayor Richard Bissen last year, Bill 9 is designed to boost the island’s long-term housing supply following the loss of thousands of single-family homes and apartments in the wildfires. 

Maui County still boasts the largest number of short-term rentals in the Aloha State both in terms of available nights and inventory, with an estimated 10,666 units, which accounts for nearly 15% of the area’s entire housing stock, according to the 2025 Hawaii Housing Factbook.

Hilton Head Island, SC

Within the contiguous United States, South Carolina stood out with two coastal towns showing some of the nation’s strongest short-term revenue growth.

Despite having a year-round population of just 40,000 inhabitants, Hilton Head Island, SC, attracts over 2.5 million visitors every year.

With more than 100 miles of scenic trails and two dozen golf c

Charleston, SC

Located about 100 miles to the north, Charleston, SC, ranked third in RevPAR growth, posting a 14.5% rise in revenue compared with July 2024, largely driven by higher rates.

A charming oceanside city of horse-drawn carriages, celebrated Lowcountry cooking, and well-preserved antebellum architecture, Charleston attracts an estimated 7 million tourists annually. In 2024, close to 8 million people visited “The Holy City,” according to data from the College of Charleston’s Office of Tourism Analysis, reported by Charleston City Paper.

Every adult per trip spent an average of $1,105 last year, generating a record-breaking total economic impact of $14 billion for the city.

Lane, with AirDNA, says coastal hot spots like Hilton Head and Charleston have seen their popularity surge among domestic travelers, further bolstered by a slight slowdown in outbound international travel this summer. “People want to go to the beach in the summer, and markets that are sort of attractive have some of the best beaches around the country,” he says.

Berner agrees that U.S. short-term rental markets have benefited from Americans opting to vacation domestically this summer rather than traveling abroad.

“The luxury segment of STRs appears to be driving growth, and one reason for this may be the weakening of the U.S. dollar against the euro,” he says. “Families who otherwise may have gone abroad this summer may be choosing to vacation stateside this year where their money goes further, and these families are choosing high-dollar rental properties in the U.S.”

What’s in store for STR investors?

This potentially spells good news for those looking to purchase an investment property as a short-term rental, following a rough patch for the industry marked by oversupply and a lack of demand, which drove revenues down in many areas.

Supply of short-term rentals stumbled in July after two months of growth, with STR listings rising 4.6%, down from 5.7% in June. Gallagher says that if the Federal Reserve follows through with a widely anticipated interest rate cut in September, STR supply could see stronger growth, as more people would be willing to purchase investment properties to rent out.  

“This summer’s data should signal that STRs can still be a good investment, or at least a way to help finance a vacation home purchase,” concurs Berner. “Many would-be vacation-home buyers are staring down still-high mortgage rates as another blocker, but we anticipate a bit more relief on the rate front through the rest of 2025.”

If you want to get your rentals more profitable let us know!

By Ben Angarone
Origin Article: here

The head of Honolulu’s permitting department told the City Council last week why the city doesn’t enforce a 2019 law that bars companies such as Airbnb and Vrbo from allowing people to book illegal short-term rentals.

Department of Planning and Permitting Director Dawn Takeuchi Apuna said the city agreed not to enforce a provision in the law in order to settle a lawsuit filed by a group representing owners of vacation rentals.

She told Civil Beat in an interview after the hearing that the city probably won’t act anytime soon to enforce the portion of the law that requires hosting platforms to submit monthly reports on bookings. 

“It’s very risky, because they’re going to probably sue us,” she said, referring to the Kokua Coalition, the group that went to court to block parts of the 2019 law.

That’s not what she told Civil Beat in May when a reporter asked about the law. She said the permitting department prefers to treat companies like Airbnb as partners rather than adversaries, and that the department works with them to keep scofflaws off the platform.

Department officials have not explained why they didn’t say anything until last week about the agreement not to enforce the law.

After the council meeting, Civil Beat sent an email asking when Takeuchi Apuna, who wasn’t with DPP when the law was passed, had learned about the lawsuit.

Spokesperson Curtis Lum sent a written statement attributed to Takeuchi Apuna that said, “The Department of Planning and Permitting was part of that suit, so DPP and Corporation Counsel were obviously well aware of that suit and settlement from its inception.”

Civil Beat called Lum and sent a follow-up email to ask why no one had mentioned the settlement before. Takeuchi Apuna responded Wednesday morning in an email, saying her initial answer in May of why they don’t enforce against the platforms was accurate despite not being exhaustive.

“This term is one of many – not the only – policy considerations for us in determining whether we should or should not enforce against the platforms,” she said.

Holding platforms accountable – and using those reports to see if vacationers were booking unregistered short-term rentals – was a big part of the 2019 law.

Instead, the city goes after owners of illegal rentals. But city officials have acknowledged it’s hard to crack down on them, in part because operators learn to evade detection. Some list their properties when city investigators aren’t on the clock. Some jump to another platform if their listings are shut down on one website. One operator racked up almost $1 million in fines before the city moved to foreclose on his property.

Though some say illegal short-term rentals aren’t as common as when the council passed the 2019 law, they’re still a problem. Inside Airbnb, an organization that works to combat the negative effects of short-term rentals, says the site has about 7,900 listings on Oʻahu.

About 1,800 properties are registered with the city as short-term rentals, and more than 700 additional units were grandfathered in decades ago. Another group — more than 1,800 units — aren’t registered but operate legally within hotels. Conservatively, that would mean hundreds of illegal rentals are still operating in the city.

Lawsuit Followed Ordinance

The city’s short-term rental law attempted to balance the negative effects of short-term rentals, such as a diminished housing supply, with the economic benefits to property owners who rent to vacationers.

It took effect Aug. 1, 2019. The same day, the Kokua Coalition, doing business as the Hawaii Vacation Rental Owners Association, went to federal court to block parts of it.

The law allows short-term rentals of less than 30 days only in Oʻahu’s resort zones and some surrounding areas, and only if they register with the city. Registering triggers a higher property tax rate.

The law bars hosting platforms such as Airbnb and Vrbo from collecting a fee to book an unregistered short-term rental. Those platforms are required to register with the city and to submit monthly reports detailing bookings in the city.

Violating any of those provisions carries a fine of $1,000 to $10,000 per day.

In its lawsuit, the Kokua Coalition claimed that the city’s initial enforcement effort, before the law took effect, was “sloppy.” Hundreds of people operating legally were erroneously threatened with $10,000 fines, they alleged.

They also argued that the requirement for monthly reports violated state and federal protections of the privacy of electronic communications as well as the Fourth Amendment’s protection against unreasonable searches and seizures.

About two months later, the vacation rental owners and the city reached a deal to end the suit.

In the agreement, which was included in a court order dismissing the case, the city acknowledged that courts have blocked other cities from enforcing similar ordinances. The agreement noted court orders in New York City, Boston, Portland, Oregon, and Los Angeles.

“Based on its understanding of the current state of the law and its interests in avoiding unnecessary litigation, DPP does not currently intend to enforce” the provision allowing it to penalize platforms that fail to provide monthly reports, the agreement says.

The city agreed to give the Kokua Coalition 60 days’ notice if it intended to enforce that provision, which would give the group a chance to sue to stop it.

City’s Explanation Changes

Some cities have decided to hold platforms accountable for illegal listings, which two law professors have held up as a best practice.

Civil Beat asked DPP about the 2019 law several times in early May, both by email and in interviews. We first inquired how many times the city has fined hosting companies; Lum, the spokesperson, said it had never done so. We asked to see the monthly reports; Takeuchi Apuna said they had never received any.

When we asked how many platforms had registered, spokesperson Davis Pitner said none had done so.

No one mentioned the lawsuit.Asked why the platforms weren’t submitting monthly reports, Takeuchi Apuna said the department didn’t need them to do its job.

“If reports are something that would help us better enforce, then we would probably ask for that,” she said.

During last week’s council meeting, however, Takeuchi Apuna testified during a presentation on DPP’s strategy for short-term rental enforcement that the department doesn’t get booking reports because of the court order in the Kokua Coalition lawsuit. If the city tried to get them, “they will be ready to litigate,” she said.

She reiterated her belief that the city doesn’t need the reports: “We believe the reporting info may be helpful, but it’s not crucial based on the type of enforcements we currently are exercising.”

The lead lawyer for Kokua Coalition, Greg Kugle, said he didn’t have time to talk about the case. Efforts to reach officers in the group were unsuccessful. Another lawyer declined to comment.

That agreement between the city and Kokua Coalition doesn’t stop the city from enforcing other parts of the 2019 law, however: the provisions allowing the city to penalize hosting companies for failing to register and for facilitating bookings of illegal rentals.

In May, Takeuchi Apuna explained the city’s lack of enforcement of those provisions by citing a federal law that shields tech companies from liability when it comes to free speech, saying it could apply to vacation rental platforms.

Council member Tyler Dos Santos-Tam said he was surprised to hear Takeuchi Apuna’s new explanation. He said he had tried to get those booking reports sometime last year and was told the department didn’t have them. He didn’t pursue the matter.

Despite the privacy concerns claimed by vacation rental owners, he said he thinks the city should request the data anyway.

“I think we need to go back and find as much information as possible, and get the platforms to give us this information in a reasonable way,” he said.

One option, he said, would be to get anonymized data, which would enable the city to see where rentals operate and how long guests stay in them. That, he said, could inform future legislation.

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