Hawaii's reputation as a premier travel destination is facing a new hurdle: sky-high car rental prices. A recent report highlighted by Hawaii Free Press reveals that Kona and Kahului airports top the list for the most expensive car rentals in the U.S. This trend has significant implications for the state's tourism sector, its business owners, and potential investors.
The high costs are not limited to just two airports; Lihue also finds itself among the top destinations with the most elevated rental prices, creating an additional financial burden for tourists. Data from a CheapCarRental.com survey in Winter 2024-2025 indicates that Kahului (OGG) has the highest average daily rental rate at $101, followed by Kona (KOA) at $64. Lihue (LIH) also ranks high on the list at $78 per day. These high prices, compounded by other travel expenses, may deter some visitors and influence their spending habits while on the islands.
For businesses within the state, particularly those catering to tourists, the high rental costs present both challenges and opportunities. Hotels, tour operators, and restaurants could see a decrease in visitor numbers or a shift in spending patterns as tourists become more budget-conscious. On the other hand, this situation could also create chances for entrepreneurs to explore alternatives such as ride-sharing, shuttle services, or specialized tour packages that include transportation. The key will be to adapt to shifting consumer behaviors in a landscape with high transportation costs.
Investors and entrepreneurs should consider the long-term effects of escalating car rental prices when making their investment decisions. In a related article from KHON2, published in April 30, 2021, which analyzed car rental rates at other various airports, it highlighted rental car rate increases of over 50% compared to 2019's rates. This information underlines the need for savvy investors that can identify sustainable solutions to deal with high transportation expenses and capitalize on the demands created by it.
The surging prices also call upon policymakers to consider measures that could stabilize costs and encourage healthy competition within the car rental market. This might include reviewing regulations, promoting incentives for new transportation services, or exploring partnerships to improve transport infrastructures and visitor accommodations. With tourism being such a vital aspect of Hawaii's economy, finding solutions become crucial for sustaining economic stability.
