Aloha!
Welcome to the very first edition of “Hawaiʻi Hotel Hui Insider.”
Creating this newsletter has been on my to-do list for a long time, and I’m thrilled to finally share it with you. Our goal is to share news and insights across the hotel industry here in Hawaiʻi while building a community of Hawaiʻi hotel professionals. We will be covering various aspects of the industry, from marketing, revenue management, sales, technology, legal, development, guest services, and more.
This is just the beginning, and I’d love your feedback to shape future issues. Whether through this newsletter, my consulting services, or connecting you with the right experts. My goal is to help Hawaiʻi hotels thrive. Mahalo for reading, and welcome to the Hui!
We are trying to grow our community, so if you enjoy this newsletter, please consider sharing it with a friend! The link the subscribe can be found here or you can sign up bellow.
Let's dive into this month's newsletter.
Mahalo,
Dan Wacksman
Hawaiʻi Hotel Hui Insider Editor in Chief 😄
What’s Happening with Hawaiʻi’s Green Fee and Tourist Taxes?
Governor Josh Green is pushing for a $25 per person “green fee” starting in 2025, with hopes of raising $68 million a year for environmental projects. The legislative session kicks off on January 15th, and it’ll be a big moment for this proposal. Similar ideas have failed in the past, but there’s a sense that this time might be different. There are lots of open questions, like how this tax will be collected. If tagged onto the hotel bill, which is one of the suggestions, this can be a significant increase in the cost, and as we all know most guests look at the total cost and not the breakout of fees. Are we pricing our guests out of paradise?
Will flying to Hawaiʻi be a Breeze?
Breeze Airways, a rapidly expanding low-cost carrier founded by serial airline entrepreneur David Neeleman in 2021, is actively pursuing plans to launch flights to Hawaiʻi, potentially as early as fall 2025. Neeleman, who previously founded JetBlue Airways, brings decades of aviation experience to this venture. The airline is currently seeking ETOPS certification and flag carrier status from the FAA, which are necessary for long overwater flights. While specific routes haven't been announced, Breeze is considering departures from secondary West Coast cities such as San Bernardino, Orange County, Burbank, Las Vegas, and San Diego. The airline may also utilize its base in Provo, Utah, for connections.
More HTA Drama
Facts: Hawaiʻi is one of the most isolated island chains in the world and also among the most beautiful and desired destinations to visit.
Opinion: While diversification into other industries is important, at the end of the day, we are who we are, and we need to embrace it. We are a tourism-driven economy, and no matter how much we diversify, this is unlikely to change. Therefore, we need to effectively market and manage this, which is the role of the HTA.HTA has been without a permanent CEO since September 2023, and 30% of the positions in the organization remain unfilled. Who would want to join an organization that might be defunded and is constantly being battered? A recent article indicated that there is now an attempt to reduce the salary of the CEO (who has yet to be hired). While the current team is doing a yeoman's job of keeping things running, if we do not offer an industry-competitive salary and stabilize the organization, it is unlikely that we will retain existing and attract the best candidates going forward. While our destination certainly has a halo, if we do not nurture its image and brand, we will lose out to competitor destinations.
The Lost City of Ko Olina
Just in time for our first issue, Pacific Business News reported that an affiliate of Kam Sang Co., a California-based real estate company, purchased two oceanfront parcels at Ko Olina for $216 million. You might recall that these are the same two parcels originally slated for the Atlantis Resort, which was announced back in 2016.
As part of the deal, it seems the new owners have committed to the original plan of building the Atlantis Resort at an estimated cost of $2–$2.5 billion, with a timeline of five years to complete. And if you believe that, I have a bridge in Brooklyn—or a railway in Ewa—to sell you.
It will certainly be interesting to see what happens with this beautiful plot of land. If the project does come to fruition, according to the article, Atlantis will feature about 500 hotel rooms and 500 vacation-stay (or condominium) units, while a second hotel will have approximately 250 hotel rooms and 250 vacation units, for a total of 1,500 keys.
Hawaiʻi Development Update Courtesy of Powell & Aucello
The press reported that Blackstone is considering selling the Grand Wailea. Even with the fires it appears that ALIS in Los Angeles will proceed from January 28th - 30th. Powell & Aucello anticipate more hotels coming to market during this conference than in the last five years.
For monthly detailed update on the Hawaiʻi market and development subscribe to the Powell & Aucello monthly newsletter.
Resort Fees
I have been around a long time, and I realize this may not be a popular view, but resort fees (for the most part) were created for two reasons. One was to increase ADR without giving guests sticker shock, and the other to allow the fees to drop to the bottom line without having to pay commissions on them, specifically to OTAs. Yes, some resorts truly need these fees for resort amenities, but these are few and far between (and no, use of a safe and bottle of water is not what I am talking about). As expected, the FTC has now weighed in on this, and while it does not make the fees illegal, it requires that the full price be displayed upfront when advertising rates. This means resorts will likely need to pay commissions on the full price (if they aren't already), and if these fees cannot be separated from the room rate, do they hold any real purpose anymore? The new rules are slated to take effect in April of this year, barring any last-minute changes from the new administration.
The AI space is evolving so quickly it’s almost impossible to keep up!
I have to admit—I love generative AI tools and am constantly discovering new ways to use them in almost every aspect of my life. My latest “cool tool” is Perplexity, which describes itself as an “answer engine.” Imagine it as a blend of Google and ChatGPT. When I need specific information, I find it more practical than Google because it eliminates the need to sift through ads and irrelevant results. It’s also often better than ChatGPT because it’s faster, requires fewer clarifications, makes fewer mistakes, and provides specific citations so I can easily verify original sources.
These days, my search strategy looks something like this: ChatGPT for analysis and ideation, Perplexity for research, and Google for shopping.
I recently conducted a poll with my LinkedIn network and I was surprised to see that many people have not quite caught on to the power of AI tools yet.
In case you wanted some ideas, of how you might use it, here are just a few: crafting personalized guest communications, writing engaging social media content, generating ideas for marketing campaigns, streamlining email responses to common inquiries, developing employee training materials, researching industry trends and competitor strategies, summarizing long documents or reports, creating FAQs or knowledge base articles, enhancing SEO strategies with keyword suggestions, drafting press releases or announcements, brainstorming event or promotion ideas, translating content for international guests, preparing detailed itineraries for guests, automating routine administrative tasks, monitoring online reviews for sentiment analysis, drafting policies or SOP templates, curating local recommendations for guests, assisting with recruiting by drafting job descriptions, generating responses for crisis communication scenarios… the list goes on…
If you are interested in Generative AI workshops for yourself or your team feel free to reach out to us.
Hawai‘i Hospitality & Tourism Industry Events Calendars
Upcoming Hawaii Events
*If you have industry events to share, please email me at Dan@sassato.com
Spotlight on Hawai‘i Hospitality Opportunities
I am often asked by hiring managers if I can recommend any strong job candidates. There is often a feeling that there is not enough talent here in Hawaiʻi. Of course, I beg to differ, and when I come across interesting roles, I plan on including them here.
Regional Director of Sales + Marketing - PM Hotel Group (Oahu)
Director of Travel Industry Sales - Marriott (Oahu)
Sales Manager - MacNaughton Hospitality (Oahu)
Sales Manager, Group and Business Transient - Outrigger (Kauai)
Regional Director Condo Operations - Outrigger (Maui)
Director of Sales & Marketing - Pyramid Global Hospitality (Oahu)
*If you happen to have any job openings let me know and I will be glad to include in the newsletter, just send the job link to dan@sassato.com.
Expats on Prime Video
Last month I watched Expats starring Nicole Kidman (Prime Video), it is kind of slow and depressing and definitely did not have a happy ending. I was kind of angry at the series at the end, but I think I really liked it—I’m still not sure- but if there is a Season 2, sign me up.
I think part of my interest was it was set in Hong Kong, and it reminded me of my families expat life when we lived there in the mid-2000’s, well not the drama or the level of wealth but the streets and the general lifestyle. For those familiar with Hong Kong the Episodes were: The Peak, Mongkok, Mid-Levels, Mainland, Central, Home. (Unfortunately, my old neighborhood, Pokfulum, did not make the cut).
About Us
Hawaiʻi Hotel Hui was started by hotel industry veteran Dan Wacksman, who is the CEO of Sassato, a Hawaiʻi-based consultancy that combines deep local expertise with a global perspective to help hotels and travel businesses overcome challenges and thrive. With a team of seasoned industry professionals who call Hawaiʻi home, we offer an intimate understanding of the market, culture, and key players, paired with decades of experience in marketing, revenue management, operations, technology, finance, and overall strategy.
While Hawaiʻi is our backyard, our global footprint enables us to bring best practices from around the world. At Sassato, we don’t just consult—we deliver results with a no-nonsense approach to getting sh*t done.
Recent engagements include brand transitions, system selection and implementation (e.g., website, booking engine, PMS, CRS, CMS, CDP), feasibility studies, competitive analysis, strategic planning, training, meeting facilitation, audits in marketing, distribution, and technology. If you have a need, we’ll either assist directly or connect you with the right experts. Our ultimate goal is to be a trusted partner and resource for Hawai‘i hotels.
