If you think Hawaii hotels rates are high, think again, because we're actually CHEAPER when you're talking about how they compare to other similar destinations.

l will  concede that room rates in Hawaii are about double the national average, but there is at least one simple explanation for that disparity. There are a whole lot more crummy hotels on the mainland without the exacting standards of the many branded hotels we enjoy here in Hawaii. I mean, you just can’t compare a Best Western in Wichita to the Royal Hawaiian. The sheer number of lesser properties on the mainland drives that national room rate average way down.

As with any industry, it’s all about supply and demand. In Hawaii, that translates into hotel occupancy numbers. In Hawaii in December, hotel occupancy was just over 70%. That number is up 4.7% over the same period a year before, and that’s encouraging, but hotels get nervous when occupancy dips below 80%. So a 70% occupancy rate means that most hotels will offer limited-time discounted rooms to increase occupancy. An empty room loses money.

Listen to today's show to hear here more and learn how you can save on Hawaii Hotels your next Hawaii Vacation.