Hawai'i travel industry adjusting to families

By Katherine Nichols
Advertiser Staff Writer

The Hawai'i-based cruise ship Norwegian Star knows how to please parents.

At the Outrigger Reef on the Beach, children and parents can learn the hula together while vacationing in Waikiki. All of the tourism industry is trying to attract more business from families — a clientele that has steadily risen to account for one-fifth of the $582 billion travel industry in the United States. Market studies show that of total arrivals in Hawai'i, 24 percent from the U.S. Mainland and 36 percent from Japan are families. Bruce Asato • The Honolulu Advertiser

For the Star, the fun-filled, kid-oriented theme is serious business. Families now make up about 20 percent of its passengers each year, and the number of children on all cruises around the world has increased 40 percent since 1998, reaching more than 700,000 in 2001, according to the Cruise Lines International Association.

While cruise companies may be at the forefront of catering to the family clientele, others in the tourism industry are trying to capture a market that has steadily risen to account for one-fifth of the $582 billion U.S. travel industry.

"There seems to be this rebonding with families that had been building, but I think has been exacerbated by Sept. 11," said Joseph Toy, president and chief executive officer of Hospitality Advisors LLC.

Although family travelers have been an important part of Hawai'i's tourism industry for years, the state and most businesses are only now beginning to track the numbers to adjust their marketing campaigns. Of all arrivals to Hawai'i, 24 percent from the U.S. Mainland and 36 percent from Japan are families, said Chris Kam, research director in the market trends department of the Hawai'i Visitors & Convention Bureau.

More than ever, Hawai'i's tourism industry is working to capitalize on its image as a family destination, using innovative approaches to try to retain — and expand — its share of the market with such things as a significant investment in the Disney film "Lilo & Stitch" and ongoing talks of developing a new theme park.

"We think the events of 9/11 have actually increased the family travel to Hawai'i," said Roy Tokujo, president and chief executive officer of Cove Entertainment, whose shows typically record a 30 percent increase in family attendance during traditional school breaks.

Tokujo predicts that this summer, 40 percent more parents and children will buy tickets to his "'Ulalena" show on Maui.

Tokujo said the definition of family has broadened to include grandparents. The Maui show recently has welcomed more groups of three generations traveling together, a trend also noticed by Atlantis Adventures, the parent company of Sea Life Park, Atlantis Submarines and Atlantis Cruises.

Parents and children alike get a free lesson in lei-making from Auntie Sybil Shrinski as part of the Aloha Friday program at the Outrigger Reef on the Beach. Bruce Asato • The Honolulu Advertiser

"We are seeing substantial discounts in the market," said Toy.

Many hotels are converting rooms into family suites with convertible sofa beds, games and other activities. Toy said he has seen a substantial shift to include "things that you normally wouldn't see in a high-end hotel (such as) an upgrade in furnishings and amenities that would accommodate families."

Other remodeling projects geared toward the family market include more play structures and water slides like the ones that Outrigger Hotels & Resorts recently added to its Wailea resort on Maui.

"The reason we put it in is we didn't have much family business when we took over (that resort)," said Outrigger Enterprises Inc. president and chief executive officer David Carey, who estimated that 60 percent of Outrigger Hotels & Resorts' business is family-oriented. Indeed, the company is most successful with its condominiums and Ohana Hotels, where many rooms offer kitchenettes.

Outrigger also has teamed with tour operators to coordinate promotions. Under one deal, families get a connecting room for free, or a steeply reduced rate, and keiki eat for free from the children's menu.

Value-added packages like these are not new, but instead are taking higher priority in resorts.

"We've definitely put an extra emphasis on family," said Claire Morris-Dobie, director of public relations at the Hyatt Regency Kauai Resort & Spa. At Camp Hyatt, youngsters receive a T-shirt and bound journal to record their daily adventures. In addition to a cost-free day in the children's program, kids can golf with their parents or improve their swing with an instructor for a nominal fee.

The Four Seasons Resort Hualalai on the Big Island gives families a special stuffed toy and the children's names spelled out in cut-out sponge letters for later use in the bathtub. The complimentary-care supervisors lead children on nature hikes and snorkeling excursions in the saltwater pond. Such amenities as jog strollers and poolside playpens are also available.

Two years ago the resort added a teen center with a billiard table and computers, said Brian Soma, director of sales at the Hualalai.

To maintain its firm grip on the market, cruise companies are constructing vessels with plenty of adjoining cabins and adding more items to the children's menus. All-inclusive meals and entertainment packages, free-style cruising allowing parents with young children to dine earlier, and hiking and fishing on-shore excursions are especially attractive to families, said John Hansen, president of North West CruiseShip Association.

"When you add it all up, it's actually quite (financially) competitive," he said.

Kid-specific pastimes aren't the only emphasis. Aloha Friday at the Outrigger Reef on the Beach in Waikiki has free lei-making, weaving and hula lessons for families.

Reach Katherine Nichols at 525-8093 or knichols@honoluluadvertiser.com.