The thing is, most people who are arriving now through Aug. already have their plane and accommodation reservations made at higher prices.

I'd bet the planes are still going to be full in Aug. Also sounds like a lot of TA readers are coming in Sept. too. I wonder if they will discount rentals already paid for?

Canative, that is true. True for those who've already had their summer plans made for some time now. However, there are many, many empty rooms and condos right now. Much more than is typical for summer. So they're trying to attract folks who are 'on the fence' so to speak, for late summer and fall.

I'm really not sure if those who already have their reservations will see a change in their pricing. My guess is they will need to ask. It probably just won't be automatically reduced.

My friends are flying their family of 7 to Kauai this Saturday for a week in Poipu. Turns out their sil got a new job, so he can't take off the entire week. He has to return to LA on Tuesday....they tried every airline a few weeks ago to get him back home, and finally found a seat for $1,200. (they are just a little upset, since they paid less long ago for the original fare) I guess they get credit or a penalty fee to use the ticket later. That's where I figured planes are still full, for right now.

Another family at our karate studio is leaving on Monday for 10 days on Kauai (I dated dumped on her this afternoon with all of my wisdom). Anyway, they are paying full price for BOTH the Hyatt and Princeville Resort (I did not have the heart to tell her about the specials at the Princeville). A lot of folks are still going this summer and paying the full fare. BUT, I will check out the specials at Parrish for hubby's upcoming business trips! Any little bit helps!

if you booked your hotel at a higher, just cancel the reservation and rebook at discounted rate. I booked early May, kept checking the rates for Princeville Resort and Sheraton, re-booked early June and saved $1,300!!! the 800 number number at Starwood would not help (they claimed it was an online special they cannot "see"), I think they try to make it difficult!....you do have to cancel online, then rebook, which means they will recharge a deposit, but they credited back original booking deposit within days. of course, if you are within the 48 hr. arrival window, this may not work since the rate will be locked in.

I always re-check hotel rates after booking originally. they often drop.

I'm just happy with the airfare I booked in March.

Martik, I believe you say your husband usually stays at Waikomo Stream? I notice that they are posting a 15% construction discount through sometime in 2009 there.

After Kauai, we are headed to Oahu. I was doubting my choice of accomodations in Waikiki so I started looking in the Ko Olina area. There were tons of rentals available NOW at some swanky new condo on the beach. Per night rates were $500-$700. I tried to negotiate with some owners.....nothing. They'd rather be vacant than lower.

The hotel I was booked at, the Moana Surfrider, is now more expensive than when I booked 6 months ago. Surrounding hotels are still top dollar. Waikiki area could be an entirely different beast with Asian tourism holding up prices.

FYI....I'm only going to Waikiki for the kids. I'd rather stay in Kauai

The moral of the story is that there is a mild panic setting in for unbooked summer rooms AND fall. From the tourism bureaus - March and April were down about 12%, May was down about 17%. Not sure of June numbers but they are forecasted this trend for the entire year of 2008 and then 2009 staying flat at those figures too. This is for Kauai at least. The word is that the tourism drop in Hawaii is there for the longer haul - through 2009. I'd post all the links but they are many and voluminous readings.

Here is one interesting article from Save Kauai. You can see that Kauai and the Big Island are hurting the most. The 7.4% for May was all-Hawaii. Kauai and the B.I. were both about 17%.

Interesting read. And interesting website.

savekauai.org/economy/tourism-slides-deeper