Gatekeeping Tourists, Kona Comeback Story, and Cruise Ships Eating Our Lunch?

December 02, 2025

Aloha !

Welcome to this month’s Hawaiʻi Hotel Hui Insider. We hope everyone had a fantastic Thanksgiving! 

A big mahalo to this issue's sponsor, Lights On, our local hotel marketing and revenue experts, who also built the new Hawaiʻi Hotel Hui website. They know hotels need marketing and revenue management working together, not in silos. Lights On's integrated strategies drive direct bookings through modern channels like AI search, optimize ADR through seasonal shifts, and provide strategic revenue guidance for hotels across the islands.

We just launched the new site and would love it if the Hui took a look. Kick the tires, test it out, break it if you can. Seriously. Let us know what works, what doesn’t, and what’s missing. Just hit reply and share your thoughts: HawaiiHotelHui.com.

Do you know we read and respond to every email we receive? Ok, this is not quite a herculean task, as we only receive a few each issue. But we love receiving them, and rest assured, we read and respond to them, so don’t be shy in giving us feedback

Here’s what we’re covering this issue: the messy truth behind “the right kind of tourist,” cruise lines outpacing hotels, plus: a long-stalled Kona parcel finally gets new life, Hopper quietly drifts toward the exit, and we separate agentic AI hype from reality.

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Thanks for sticking with us. The Hui’s just getting started!

Let’s dive in.

Mahalo,

Dan Wacksman
Hawaiʻi Hotel Hui Insider Editor-in-Chief 😄

“The Right Kind of Tourist”

OK, we may get flak for this, but here goes…

When I lived in Hong Kong, we were touring schools for my kids. I vividly remember an admissions officer saying, with a straight face, “We only want the right kind of children.” I probably should’ve smiled politely and moved on. But I couldn’t help myself. I told him, “All children are the right kind of children,” and asked, “What exactly does a ‘wrong’ six-year-old look like?”

Shockingly, we didn’t get in.

But that phrase - “the right kind of child”- has stuck with me. And while it’s not quite the same, I get that same pit-in-the-stomach feeling every time someone in tourism talks about attracting “the right kind of tourist”, or whatever the buzzword of the month is: mindful, high-spending, low-impact, values-aligned, pre-screened by karma.

It’s one of those lines that sounds smart on a panel and looks good in a PowerPoint, but crumbles the second you try to define it. The truth is, we don’t get to custom-order tourists from a catalog. And when we start categorizing people like inventory, we’ve missed the point.

Instead of gatekeeping, we should be focused on managing the experience: educating visitors, investing in infrastructure, reinforcing local values, and supporting the communities that host them. That’s not about filtering people, it’s about raising the bar for how we host, and how we ask to be treated in return.

I get the intent behind phrases like “mindful” or “high-value” visitor; there’s real pressure to ease strain and protect what makes Hawaiʻi special. But when we start sorting people by worthiness, even subtly, we lose the plot.

Because just like with kids, maybe it’s not about finding the “right kind” of tourist, but creating the right kind of environment.

P.S. An article in SFGATE just last week highlighted how rising travel costs are already reshaping who visits Hawaiʻi. Maybe that’s a good thing, fewer people, more spending. But it does raise a question: at what point does price start to shape not just how many people come, but who feels welcome?

New Role, Same Values

If you’ve worked in Hawaiʻi tourism for more than a minute, you know Kainoa Daines. Thoughtful, funny, and deeply rooted in place. So it makes sense that his next chapter puts values front and center.

After 14 years at the Hawaiʻi Visitors & Convention Bureau (HVCB), Kainoa is now Director of ESG & Culture at Kyo-ya and Marriott. As he said in his LinkedIn post, he’s trading six islands for six landmark hotels: Moana Surfrider, The Royal Hawaiian, Sheraton Waikīkī, Princess Kaiulani, Sheraton Maui, and the Palace Hotel in San Francisco.

He’ll be leading efforts across sustainability, governance, community impact, and cultural integrity, core areas that define how hospitality shows up for people and place.

Congrats, Kainoa. Looking forward to seeing how you shape what comes next and hoping we can still talk you into emceeing some industry events!

Note: If you’re wondering about the Marriott/Kyo-ya reference above, Kyo-ya, a Japanese company, owns the hotels listed above. They are branded and managed by Marriott.

The Future of Hotel Childcare Starts Here
-Featured Partner-

Are you ready for parents to fall in love with your hotel? Tutti Vacation's "Trust at First Sight" program is your fast pass to elevating the guest experience. Our babysitters arrive with a nanny camera to give parents total peace of mind. We offer transparent local pricing and low booking fees, no more overcharging guests.

With excellent customer service, easy booking, quick AI search tools, the ability for parents to choose their sitter, and a rapid-response button for last-minute care, Tutti Vacation Childcare is the leading, community-focused childcare solution. Rooted in Hawai‘i hospitality, Tutti blends genuine care with innovation. 

Partner with Tutti today and give your guests the very best!

New Life for an Old Eyesore in Kona

After sitting idle (and ugly) for years, a 1.75-acre lot in the heart of Kailua-Kona is finally getting a makeover. Hilton Grand Vacations just sold the parcel, once slated for a timeshare, to Maryland-based Baywood Hotels for $4.65M. Their plan? A $45M Residence Inn by Marriott, with 100 extended-stay rooms. That is a hefty $496K per key!

The site, next to Kona Reef Resort, had been stuck in permitting purgatory since 2023. With approvals finally in place, construction is now slated for 2027. Between this project, the Uncle Billy’s to Hampton Inn conversion, and the Pacific 19 refresh of the old Seaside Hotel, Kona is finally seeing some long-overdue investment.

Cruise Ships Are Winning. Hotels Should Take Notes.

I recently received a note from my friend and industry consulting legend, John Burns, pointing out something we’d rather not admit: the cruise industry is eating our lunch. While hotel occupancy has been flat or declining, cruise lines have surged ahead with aggressive marketing, sharp messaging, and a clear value prop. They’re filling ships through 2026 and already selling 2027. Meanwhile, we’re still blaming vacation rentals and other externalities.

Hotels and destinations would do well to take notes. This isn’t luck, it’s strategy. Cruise lines have stayed focused: consistent branding, big ad buys, and simple messaging that converts.

Meanwhile, Hawaii, as a destination, is still playing catch-up. As we noted last issue, many are practically begging the state and HTA for more marketing dollars, and that plea got louder last week. In a letter to the Governor, major wholesalers (Pleasant Holidays, Delta Vacations, ALG, Classic) warned that Hawaiʻi’s brand has “grown quiet” while other destinations outspend and outmaneuver us.

And in a somewhat related note, just as the cruise sector gains momentum, we’re also finding ways to dampen it. The state’s new “green fee” (which extends TAT to cruise passengers) is now facing a federal lawsuit, backed by the DOJ, arguing it violates maritime law. Cruise lines are also raising concerns over new emissions rules, saying the state lacks the infrastructure to comply.

It’s not that regulations don’t matter; they do. But while cruise lines move forward with a unified strategy and full ships, we’re sending mixed signals: underfunded marketing, muddled messaging (see: “the right tourists”), and policies that suggest we’re not sure we even want the business.

Without serious investment and alignment, we’re not just losing share, we’re handing it over.

Hotel Performance

Hotel performance data will be published in the first issue of each month.

Hopper: One Last Hop Before Exit?

Hopper was once the darling of travel tech. It launched as a mobile-first OTA aimed at younger travelers, blending slick design with gamified booking and “fintech” tools like price freeze and cancel-for-any-reason. They expanded into B2B with private-label travel portals and loyalty partnerships, powering companies like Capital One and Uber, while also selling their fintech tools to airlines and others.

But now, according to Skift, Capital One is acquiring the very software Hopper built to run its travel portal, and quietly hiring away Hopper’s hotel and engineering teams. For a company whose consumer app now accounts for just 10% of revenue, this seems more like an exit than a pivot.

Hopper’s app is still live, with 100 million+ downloads and millions of active users. But its future looks increasingly murky: no breakout growth in recent years, and now its biggest partner is pulling the tech (at least some of it) in-house. Capital One, like Chase (which bought cxLoyalty in 2020) and Amex, is moving past white-label deals and into owning the stack.

I’m no champion of OTAs, but it was nice to think there might be a viable foil to the Expedia/Booking duopoly. Hopper had a shot, but it doesn’t look like they’ll be the ones. Maybe Airbnb’s slow-played OTA ambitions will land better. Or will it all be replaced by Agentic AI? (See below)

It’s Baaack: Vacasa Gets Rewired

I’ve been out of the vacation rental platform weeds for a while, but a headline last week pulled me back in: Casago offloaded around 1,000 contracted VR units to Evolve. At first, I figured it was a pullback. Turns out, it’s a pivot. Those contracts came from Vacasa’s self-managed business, and Casago wants to focus on its core model: franchising.

You might have missed it, but earlier this year, Casago scooped up the smoldering remains of Vacasa for $130 million in cash. That’s gotta be a humbling moment for a company once valued at $4 billion (and even more humbling for their investors). But Casago didn’t buy it to keep the Vacasa machine running. They’re dismantling it and rebuilding it in their own image.

The Casago model is franchise-first. Local operators manage the homes, handle the guest experience, and maintain owner relationships. Casago provides the tech, marketing, training, and booking infrastructure. From a hotel perspective, it’s like a hotel franchise — Casago, or the “new” Vacasa, supplies the tools and brand. Local franchisees run the show.

A quick scan of the Casago and Vacasa websites shows just over 300 listings in Hawaiʻi. That’s a steep drop from Vacasa’s estimated peak of more than 1,100 listings statewide. But Casago is promoting franchise opportunities in Hawai’i on their website.

But will the math, math? Owner-manager splits these days often hover around 80/20 in favor of the property owner. That doesn’t leave much to be split between the franchisee and Casago/Vacasa. Then again, if the franchisees are lean, boots-on-the-ground operators with limited overhead, maybe it pencils out.

Do you think this model could work here? Should local VR management players be concerned?

P.S. Casago started as a small, family-run rental business in Mexico that Steve Schwab took over and grew into a national franchise brand managing over 40K properties. Now based in Scottsdale, Casago is privately held with significant institutional backing.

When Marketing and Revenue Work Together, Everything Changes
-Featured Partner-

That's especially true in softer markets like we're seeing now. Hotels that integrate marketing and revenue management protect ADR and maintain RevPAR while others struggle with siloed strategies.

Lights On unifies both disciplines to:

  • Drive direct demand from AI search and digital channels while pricing strategically to maximize yield

  • Optimize your channel mix so every booking strengthens your bottom line, not just fills rooms

  • Navigate shoulder seasons and compression with campaigns and pricing that work in sync

Hawaiʻi-based with decades of combined hotel experience, Lights On knows what it takes to win in this market.

Ready to stop operating in silos?

Brand USA Funding Might Finally Catch a Break

Back in June, we flagged that federal funding for Brand USA had been slashed from $100 million to $20 million, and this is right before the U.S. is set to host the World Cup, America’s 250th, and the 2028 Olympics.

Now, a bipartisan group in Congress is trying to fix it. The VISIT USA Act would fully restore funding for fiscal years 2026 and 2027 using surplus visa fee revenue (not taxpayer dollars). The bill has support from both parties, multiple states, and a tourism industry that knows global demand doesn’t generate itself. Right now, the U.S. is coming across as unwelcoming: confusing entry rules, rising fees, increased border scrutiny, and even worse. If we want to stay competitive, we need to actively counter that perception and make it easier for international visitors to choose us.

Agentic Booking Is Not Here. But the Claims Are.

If your LinkedIn feed looks anything like mine, you’ve probably seen the headline: “Agentic booking is here.” It usually tops a press release or breathless post claiming that AI can now plan your trip, book it for you, and in the process, wipe out all your direct bookings, no clicks, no effort, just doom.

Except, it can’t. Not yet.

Real agentic booking means the AI actually makes the purchase, selects the room, enters your info, and charges your card. What we’re seeing instead (at best) is assisted booking: AI narrows your choices, maybe pre-fills a form, but the process for the most part is still old school internet shopping.

Google recently confirmed it’s developing an agentic hotel and flight tool inside AI Mode. They’re working with OTAs like Booking and Expedia, and the large brands like Marriott and IHG. But even Google admits this is early-stage stuff.

Google says it’ll be an “open ecosystem” with no preference for OTAs vs. direct (we’ll see), and CEO Sundar Pichai says full agentic capability is likely “within 12 months.” Translation: this is roadmap material, not real-world functionality.

So yes, agentic booking is coming, and yes, you should be making sure your hotels are findable on AI platforms and paying attention to how this evolves. But let’s not confuse roadmap slides with reality. Until AI can actually book a room while you’re in a meeting, the headline isn’t “Agentic Booking Is Here.” It’s: Agentic Booking Isn’t Here. Yet.

Industry Events

HSMAI Holiday Ho’olaule’a - December 11, 2025

Celebrate the spirit of the season with HSMAI Hawai‘i at their Holiday Ho’olaule’a, an evening dedicated to connection, community, and a look back at a fantastic year together. We invite you to join us for a festive night filled with camaraderie, cheer, and plenty of aloha.

*If you have industry events to share, please email me at [email protected].

Spotlight on Hawai‘i Hospitality Opportunities

*If you happen to have any job openings, let me know. I will be glad to include them in the newsletter; send the job link to [email protected].

You Don’t Need a Passport To Go To Kapolei

It’s been a while since I had an entertainment tip. Not for lack of trying. I’ve watched plenty of plane movies, but nothing was worth recommending. Until now.

My wife and I decided to break out of our usual loop in town and head west to Kapolei. And contrary to rumor, you do not need your passport when you exit H1. We made a day of it with a stop at the new Don Don Donki, a little shopping, dinner, and a movie. We caught Rental Family, starring Brendan Fraser.

Fraser plays an out-of-work actor in Tokyo who takes a gig pretending to be people’s family members. It’s based on a real service in Japan, and the movie leans into that bizarre-but-believable space with a lot of heart. The cinematography is fantastic, the supporting cast is outstanding, and as someone who speaks Japanese, it was refreshing to hear natural dialogue from actual Japanese actors, many of whom are stars in Japan. Fraser’s performance is fantastic and believable, and he even does a solid job with the Japanese. (The movie is mostly in English, with occasional Japanese and subtitles.)

The movie walks the line between drama and comedy, enough to be emotional and funny without tipping into sentimentality or slapstick. It doesn’t try to solve the big questions, but it sits with them. And more importantly, it leaves you feeling.

BTW – While Rental Family might make you tear up a bit, if you’re looking for full-blown waterworks, watch Brendan Fraser’s Oscar-winning performance in The Whale. Just... maybe not on a plane. Let’s just say my seatmate was less than thrilled with the grown man quietly losing it at 35,000 feet.

I always say I’ll cut this section if no one writes in... and yet, every month, the inbox proves otherwise. Mahalo for the notes, praise, gripes, and daydreams; they keep this project sharp!

🔥 Praise, with a Kick

  • “I love your acerbic flair in weighing in on the hot topics of our industry… You say things that most people think but hold their tongue.” Editor’s Note: I’d say clever not acerbic.. tomato, tomahato, I guess 🤣.

  • “Another riveting issue!”

  • “Mahalo… you get a great open rate cuz we love ya!”

  • “My boss and I love your page. And the tea LOL and the truths!”

🧠 Observations Worth Chewing On

  • “We plan on visiting Maui in January 2026, but we are done after this year. You guys win—tired of being taxed—not feeling the Aloha spirit.”

  • “From what I hear in the SoCal leisure market, Hawaiʻi prices are among the highest in their history… just saying.”

  • “Been warning about this for months. I suspect the state government’s low spending on advertising is partly to blame… High prices and a waning, over-commercialized Spirit of Aloha are also contributing… January’s minimum wage hike won’t help any.”

  • “Sure would be nice to have more affordable hotel rooms just steps away from the Hawaiʻi Convention Center. Throw in some parking, additional meeting space, and a pedestrian skybridge to HCC (sorry, just daydreaming over here!)”

As always, I’ve kept comments anonymous and only trimmed for length. Don’t agree? Have something to add? Hit reply or send yours to [email protected]: you might end up here next month.

About Us

Hawaiʻi Hotel Hui was started by hotel industry veteran Dan Wacksman, the CEO of Sassato, a Hawaiʻi-based consultancy that combines deep local expertise with a global perspective.

Our team brings decades of experience across operations, marketing, revenue, tech, and finance, all aimed at helping hotels and travel companies make smarter decisions and move faster. Whether you need additional expertise, extra horsepower, or just someone who thinks like you and moves things forward, we’ve got you. From local independents to global brands, we show up with a no-nonsense, results-focused mindset. To be blunt: we get sh*t done.

Recent projects include brand transitions, system selection (PMS, CRS, CMS — all the acronym soup), implementations, project management, feasibility studies, training, audits, and everything in between.